We want to now demystify Strategy within your business.
No Strategy means NO ACTION
We are going to look at 3 main strategies that all businesses have.
All those times you have asked yourself, what am I here for, or what am I meant to be doing with my life and you get the same answer every time, “TO HELP PEOPLE”.
That is because, we are all here on this planet to help people, just in different ways. People who work in banking, help people that way. Those that help pick up the garbage, help people that way. Nurses and doctors help people, but so does everyone.
You have decided to help people in your way. You have joined your industry to express your soul purpose through that activity.
You have defined your vision and mission for “where you want to go”
You have clarified your values and know “Why you want it?”
You now need to craft your strategies “How will I get there?”
Working from your answer that you put in the section on MISSION, we now need to consider the resources (revenue) and the investment (cost of doing business) you will need to achieve that mission.
There are 3 strategies essentially:
At Becoming the Expert, we teach the 80/20 rule - 100% revenue minus 20% costs = 80% profit.
For your revenue strategy, use the year 1 figure from your MISSION.
Here is an example:
Increase Revenue Strategy
Create a business that generates:
Year 1 | $200,000 | 2020/21
Year 2 | $400,000 | 2021/22 | Year 3 | $1,000,000 | 2022/23
through training, coaching, online programs, books, webinars, promotional events, key note speaking.
Decrease Costs Strategy
20% of total revenue on each activity. Keep costs to a minimum through innovative solutions.
Year 1 | $40,000 | 2020/21
Year 2 | $80,000 | 2021/22 | Year 3 | $200,000 | 2022/23
Increase Profit Strategy
Create a business that has 80% margin in most activities after costs.
Each activity will have its own cost centre and be designed around the 80/20 rule.
80% gross profit against 20% costs for each activity.
Year 1 | $160,000 | 2020/21
Year 2 | $320,000 | 2021/22 | Year 3 | $800,000 | 2022/23
You have now worked out your 3 numbers required to determine your 3 strategies. We can now work from there with the rest of the exercises.
Here is an example of what your strategies could look like:
For example, a one day workshop is $4500 total revenue, less 20% costs ($900) for venue, printing, marketing, administration, catering, transport etc. Each event/activity will have its own profit and loss report associated with it.
That way you will always know that your business is profitable.