World's Best Business Growth Guide (ETA Edition)

Entrepreneurship through Acquisition (ETA) is the latest gold rush.

MBA grads and freedom-seeking professionals are migrating en masse to this new land of promise — hotly pursued by an army of money lenders & equity grabbers, journey guides & gurus.

This installment is for the (traditional) Searcher-turned-Operator who is now faced with the daunting tasks of improving operational efficiencies, driving growth and ultimately delivering returns to investors.

This is your zero-fluff guide to growing your newly acquired business.

No idea what ETA is?

Don't click away just yet.

I've included links to a slew of splendiferous resources in the first few comments below — because I'd totally love to pull you into this world with me — and you should totally scroll down to check that out.

Also, if you're a long-time owner of a traditional business, then you'll find this article packed with insights and ideas for you — because traditional service business is where ETA attention is over-indexing right now.

New around here?

Let's quickly get you up to speed: I'm obsessed with building the world's best businesses — hence the name of the newsletter.

I define the world's best business as one where:

1. the customers to spend the most

2. the customers stay for the longest

3. the business enjoys the healthiest profit margins

4. the lead generation and sales conversion is most effective

5. the intellectual property is the most defensible

6. the most skilled people and most effective systems are employed

7. the greatest market share is established

Given that achieving "world's best" status is no haphazard undertaking, I assimilated 13 years of multi-sector education and experience into a structured and sequential system for doubling revenue, tripling net profit and quadrupling valuation.

That system is called The A.M.P.L.I.F.Y Method.

My 1st installment entitled "How to Build the World's Business" unpacks the acronym, and provides examples of how some of the world's most valuable brands have employed its seven pillars to become the proverbial Nike of their respective niches. 

Here's something you may not know yet...

The ETA space can be challenging, because new (often first-time) CEOs are typically white-collar academic types stepping into a mostly blue-collar business.

Cultural misalignment, differing communication styles, and a lack of industry-specific knowledge are common obstacles — which can quickly descend into friction and stalled growth.

So before I present my sequential system for supercharged growth, it's important to understand that your plan is less likely to "get punched in the face" (a nod to Mike Tyson's wisdom) if you embrace an open and facilitatory leadership style that invites the contributions of those in and around the business — from new leads and long-time customers, to employees and suppliers.

With that said, here are my…

21 Steps to 2X Revenue, 3X Profit & 4X Evaluation

Steps 1 through 8 lay the foundations for growth.

Step 9 speaks to Profit Improvement.

Steps 10 through 15 are all about Client Attraction and Conversion.

Steps 16 through 19  Operational Optimization.

Steps 20 & 21 speak to Increased Market Share through Acquisition

I'll comment on the order of the sequence on the back end of the list.

Let's get into the details…

Foundations Phase

STEP 1 - Clearly define the new vision and values of the company.

This becomes the guiding star for decision-making and sets the tone for the company culture.

Expert Hack:  Host an offsite workshop with a seasoned facilitator, and have employees (and a few select customers and suppliers, if possible) to contribute their ideas and industry insights, thereby increasing, stakeholder engagement, ownership and advocacy — because ideas are like children; you always love your own more than else's.

STEP 2 - Establish a Market Dominating Position & Raise Prices

Define, develop and double-down on your differentiated value.

Once you've done that, raise your prices by at least 12%.

It blows my mind how many SMEs bury their distinctive brilliance under manky 'me-too' positioning, and relegate themselves to price wars and decimated margins.

STEP 3 - Create an Irresistible Incentive Offer

It's imperative that your incentive offer perfectly aligns with your new positioning.

This could be free information, a free trial or a value-added bonus.

I'm a fan of the free trial, because (when done right) it provides a powerful personal experience of the value on offer — not unlike Spotify's 3-months of ad-free premium; or the Turkish Delight in C. S. Lewis's classic 'The Lion, the Witch and the Wardrobe'.

STEP 4 - Create a Qualified Client Referral System

There's a business somewhere out there that's already attracting and serving all the dream clients you could handle.

Intelligently positioning your Irresistible Incentive Offer as a value-add for businesses that serve the same target audience, swings the existing buyer momentum in your favor — it also augments the perceived value of the referral partner's 

STEP 5 - Introduce a Downsell

Offer a more affordable or simpler alternative to customers who aren't ready for your core offer.

This boosts sales and lowers your overall Customer Acquisition Cost (CAC) — it also grows the customer base and starts relationships that could lead to more sales later on.

STEP 6 - Introduce Upsells, Cross-Sells & Bundles

By offering supplementary products or services at the point of purchase, you can crank up your average order value, boost profit margins and improve customer satisfaction.

STEP 7 - Forge Joint Venture Partnerships 

This is a powerful strategy for quickly accessing new customer bases, resources and markets. 

Partnerships should be strategic — aim to close the gaps in the value that your business creates and distributes.

STEP 8 - Reactivate Past Customers

Having repositioned the business, crafted an Irresistible Incentive Offer, and refined your value ladder for optimum conversion, the final step in the Foundations phase is to run a targeted reactivation campaign to former clients.

Before you move on…

Depending on your mix of industry + size and state of the acquired business + your level of execution, Steps 1 through 8 can reasonably be expected to increase topline revenue by 15-20%, with a Net Profit improvement upwards of 30% on that new revenue.

This Foundations phase should typically take six to nine months — but it can be done in three or four.

Okay, let's move onto the next phase…

Profit Improvement Phase

STEP 9 - Cut Costs and Lower Overheads

Analyze your business expenses to identify areas where you can reduce costs without sacrificing quality or customer satisfaction.

This one-liner has (at least) 15 steps tucked into it.

Want a slightly more detailed profit improvement playbook?

Check out MasterChef Your Business (Profit Edition).

Now it's onto…

Client Attraction and Conversion Phase

STEP 10 - Profile Profitable Clients & Segment Prospecting Lists

Think Pareto Principle (80/20 rule) for sales and marketing.

Develop detailed personas for your most profitable customers and tailor your prospecting efforts to find and attract more of these clients — segmenting your lists based on these profiles allows for more targeted marketing campaigns that deliver higher returns.

With these sharper client profiles, you're ready for…

STEP 11 - Upgrade Lead Generation

Supercharge your lead generation with a combo of traditional and digital strategies.

Supplement a website upgrade and targeted advertising campaigns with a broad spread of content that guides leads from initial problem awareness to purchase — think blogs, videos and infographics..

Expert Hack: Create interactive content, like quizzes or assessments, that provides immediate value to users while also capturing detailed information about their preferences and needs, to enable more personalized follow-up.

STEP 12 - Embrace Publicity & Public Relations

Ramp up your brand's visibility and become the trusted authority in your field.

Feature in industry publications, show up on podcasts and get involved in community events.

STEP 13 - Attend Trade Shows & Industry Events

Embrace a 'stealth networking' approach, with a focus on forming genuine relationships rather than overt selling. This long-term strategy can unlock opportunities and partnerships that direct selling cannot.

Develop a clear strategy for engagement and follow-up that delivers the highest possible return on your investment in events.

STEP 14 - Monitor & Manage the Sales Process

Implement real-time analytics and feedback loops in your sales process.

Train your sales team on value mapping and matching (see STEP 10), and improve conversion rates with well-defined processes and scripts.

STEP 15 - Optimize Sales Compensation 

Striking the right balance between fixed salaries and performance-based incentives encourages continuous improvement and performance.

Beyond traditional sales commissions, introduce gamification elements into your sales compensation plans. Leaderboards, badges, and rewards for non-sales activities (like customer service or teamwork) can motivate your team in a fun and competitive way.

With your sales and marketing engine now firing on all cylinders, you're ready for…

Operational Optimization Phase

STEP 16 - Attract & Retain Superstars

Build a magnetic employer brand and foster a positive work environment.

Offering competitive compensation packages will attract high performers who align with your company's values and culture, but it's the combination of workplace culture and opportunities for continuous development that will make them stay.

STEP 17 - Develop Signature Systems & Intellectual Property

Proprietary systems can offer a competitive advantage and strengthen your market position.

Conduct "innovation sprints" where stakeholders can contribute new ideas for systems, processes, or products

Alternatively, these can be acquired through licensing agreements; directly purchasing the IP rights of a product, system or brand; or partnering with universities or research institutions — thereby protecting the energy and focus of your key employees.

STEP 18 - Automate Systems & Processes

Identify repetitive, time-consuming tasks that can be automated with software or machinery.

This not only improves operational efficiency and reduces costs, but also frees up your team to focus on more strategic activities that add greater value to the business.

Important note:  

Automation is often where new MBA-esque owner operators want to start — but without clarity on your mix of positioning, people, products, partners, promotions and performance incentives, this is premature and prohibitive.

(Also, alliteration is beautiful; embrace it). 

STEP 19 - Document Policies, Procedures & KPIs

Use dynamic policies, procedures and KPIs that evolve with the business and market conditions.

KPIs (Key Performance Indicators) are a waste of precious time and energy if they…

• don't drive actionable insights or lead to tangible improvements in performance;
• create analysis paralysis instead of fostering decisive action
• aren't integrated into the daily workflow, becoming an afterthought rather than a guide;
• aren't tied to incentives or consequences, and lack the motivational power to drive performance

Do you even want to move on?

Once you've completed Steps 1 through 19, you will have checked off six of the seven criteria for being a "world's best business":

1. Your customers spend the most

2. Your customers staying the longest

3. Your business enjoys the best  margins

4. Your sales and marketing is most effective

5. Your intellectual property is the most defensible; and

6. You employ the best people and the most effective systems.

At this point, you have most likely doubled your revenue, tripled your net profit and quadrupled your valuation — and you're probably ready for a favorable exit.

That might be enough for you.

But if you've embraced a Holdco strategy (or you're an ambitious egomaniac who is bent on industry domination), then you're ready for...

Increased Market Share through Acquisition Phase

STEP 20 - Acquire Suppliers and Distributors

Target suppliers and distributors with complementary products, services and technologies.

This not only gives you access to new customer segments, but also diversifies your portfolio of products and services, and unlocks additional proprietary channels and expertise.

Expert Hack: Take a 'try before you buy' approach, by forming strategic alliances that can be converted into acquisitions, once you've had time to stress test the partnership(s).

STEP 21 - Acquisition of Competitors

This is the most direct route to increased market share and significant economies of scale.

To ensure you don't dilute or destroy what you've achieved up to this point, be vigilant in evaluating how competitors align with your vision, strategic objectives and workplace culture — it only takes one sneeze to infect the whole bus.

(I'm admittedly a fan of asset carve-outs rather than all the often-unknown liabilities that accompany a share purchase).

And there you have it...

The Searcher-turned-Operator's sequential 21-step system for sustainably doubling revenue, tripling net profit and (at least) quadrupling valuation. 

The real "magic" of this A.M.P.L.I.F.Y Method lies in compounded growth — where incremental improvements stack up to a cumulative impact that is so much greater than the sum of its parts.

If you're a searcher-turned-operator, reading this super-compressed overview of the 21-steps may have resulted in a few uplifting lightbulb moments — or a growing lump in your throat, as it dawns on you how many dimensions of business growth you're yet to wrap your head around.

If that's you, I invite you to reach out to find out how our tailored Growth as a Service options can smooth out the bumps on your road to success — you know,  help you sidestep the pitfalls, leapfrog the learning curves, and cut down on the guesswork.

Just drop me a DM, and we can schedule some time to chat.

Got any other questions, comments or criticisms to throw at me?

Please share them in the comments section, and let's make this a shared learning experience for those who might be looking in.

Here's to your supercharged success!