Business

DAILY QUESTION – Dealing with growing pains.

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To submit a daily question please email daily@jasonbradshaw.com.au  If I don’t get a question each day no daily question is posted.

 

Today’s daily question comes from an Australian manufacture who asks

“Our challenge has always been trying to keep up with demand, growing faster then the company and resources can handle and now needing to find an investor, how do we deal with this?”

 

Firstly thank you for your question and by the sounds of it your business has one of the best, yet frustrating challenges, that you can have.

 

The first thing that I would suggest you look at is improving your cash flow. If you were to reduce your trading terms with customers by 7 or 14 days what would this do to your cash flow and in turn help you increase production levels?

 

Have you tried negotiating higher credit limits or longer payment periods with suppliers to again help with cash flow and help increase your production runs?

 

The next thing I would suggest you consider is rising the prices of your products by a small amount. As I am sure you know there is a price point where supply and demand will match each other, I caution you here not to increase prices dramatically, but even a small increase will help generate more cash for you to help meet demand and growth costs.

 

Finally when it comes to attracting investments from venture capitalist you need to create a unique value proposition that makes you an attractive “gamble” for an investor and the more you can demonstrate sound business management and growth potential the better your chances are.

 

I would encourage you to check out the Australian Venture Capital Associations website to understand how this market works in Australia and how to attract investment of this nature.

 

Growth pains of this nature are good, with a few tweaks you can improve your supply capability and improve your attractiveness to potential investors.

 

Best of luck.

 

Jason Bradshaw

3 BOOKS EVERYONE IN BUSINESS SHOULD READ

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I have for a long time believed in the value of reading and continuous learning as a result over the years I have read a lot of stuff. Some of the books, journals, articles have been great and some have been absolutely crap.

There are however three stand out books that I think anyone in business should read. I recommend these books regardless of what stage you are at in your career. I feel these books will provide you with a great passion for delivering excellence in whatever you do, challenge some standard business assumptions and help you build a strong career.

 

I’d love to hear your thoughts on these books and any other book you think is great.

 

 

DAILY QUESTION – Exactly what do I sell?

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Today’s daily question as submitted is

 

My business provides educational and entertaining courses for retirement villages and community centres aimed towards providing learning opportunities for the mature student.

One of the biggest issues facing the business at the moment is establishing exactly what we are providing to our clients. For many of our clients, this is a completely new concept and it takes a while for them to appreciate the benefits that such as system could offer.

 

Firstly thanks for contacting me with your question.

 

It is one that plagues many businesses, that is defining what it is you actually do.

 

I fundamentally feel that trying to define, pigeon hole if you will, what it is is that you do is flawed.  I know of very few businesses that do just 1 thing long term, sure many have started with doing one thing, scaled it up and subsequently diversified, but never one thing forever.

 

I think what is important is to define is two things with absolutely clarity and they are;

1 – What problems your business resolves; and

2 – What is your unique value.

 

As a buyer do you actively look for someone that sells widget a or someone that will fix your problems?

 

Once you have found someone to fix your problem do you make your decision on price or experience promise. Based on the question and reviewing your website I think the experience is part of your differentiator and not the price.

 

I think the key to building your business is not trying to be everything to everybody but rather targeting your market, helping them resolve 1 common problem.

 

After all it doesn’t matter if you are only serving 5% of your addressable market place if your ability to meet the supply level of the market place is reached and your profit needs are met.

 

Over time you can build, through brand awareness and reputation, your business and widen your service offering.

 

In the mean time be crystal clear about what problem you will solve and attract clients that are willing to have the problem solved.

 

Best of luck, let me know what you try and how it goes.

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