How To Scale Your Business And Quadruple Your Income
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Excellent businesses have an edge which allows them to get ahead of the race.
This advantage is called timing. Timing is the ability to select the precise moment for doing something for optimum effect. In this case, timing is the ability to gauge how much time that you or your team need to get certain things done.
You will come to a stage where your schedule has reached its maximum capacity and you would need to balance up your time between looking for new businesses, versus having quality time with the people who matter to you.
Timing Is Everything
A new project which has a set deadline.
Learning to delegate the work is something we must learn to do.
For example, if you have a new project which you has a set deadline, how do you manage the allocation of work among your team? Do you simply delegate all of the work using top-down method? Or do you take a really good look at the work required for the project and instead adjust the work needed and shave off things that don’t need to be done?
At this stage, you would have gained some insights on how to generate new leads, and managing existing clients. Instead of engaging in a one-man show, a better approach will be to set up a team to execute delivery while you focus on generating sales – marketing, generating new leads, pitching and networking. To do that, you need to be working on your business rather than in your business.
How to project your income.
Before you set up a team, you need to estimate your cash flow.
Without having any idea of how much money your business can generate, it is almost impossible to accurately plan your business ahead, and prepare for the tough times that may befall your outfit.
Fortunately, predicting how much you can earn is not difficult. You can estimate how much your first-year revenue is by calculating how much money you can potentially earn. If your company isn’t generating as much as what you’ve estimated, take it as a sign for you to tweak your plans.
When you are at the helm of your business, it is very important to remember that a healthy business has a healthy stream of income. Predicting how much we’ll earn in the future is not easy, but there is a way; by projecting your income. So how do you do it?
First, list down your current average earnings of 3 months and multiply them by 12 months. The amount you get will be you estimated annual sales.
Secondly, subtract the total cost of production of the year, to get the gross profit of your company.
Third, to get the company’s net profit before taxes, subtract the company’s operating cost from the gross profit. The costs that will be incurred include employee’s salary, payroll, overhead cost, rental etc. And after that, you will need to further subtract the income tax from this.
Taxes vary from country to country, so I suggest that you should find the percentage of income taxes in your country to know your business net profit.
Leverage & Optimizes Your Company
The next question you need to answer is how to increase revenue with the same amount of time and effort. You can do it by means of leveraging and optimizing your company.
Leveraging your business means using your resources to their optimum advantage for improved results.
One big question that you need to ask to leverage is this: Am I using all of my resources to their best advantage? Do I still have back-seat roles in my team which don’t really contribute to anything? Do I really need these “back-seaters” to complete the projects or tasks given?
If you answer ‘no’, ‘yes’ and ‘no’, your business is ripe for leveraging on your existing talent pool and optimizing your team size to there are no back-seats.
Companies which can achieve more results with fewer resources are great examples of leveraging. One example is Brand A, which produces higher quality vehicles even though Brand B spends more on research.
There’s an African proverb that says, “If you want to go fast, go alone“. If you want to go far, you need a team”. Many businessmen struggle in their businesses because they try to do everything themselves. Some result in hating the entire process, because they end up performing tasks which are not their field of expertise, such as production or operations.
Some end up having to work extra hours unnecessarily. And the irony here is that they build a business with the purpose of having more free time and achieve financial freedom, yet they get swallowed up by the business. What you need here is actually a team which can execute the more operational and technical aspects of the company. This way, you will have so much more time working on your business, which includes strategic planning and direction.