TECHNOLOGY
THE IMPORTANCE OF GOAL-SETTING
By Paul Holmes , PCH Business Support
Last edition I looked at how I help businesses when they are struggling - now it ’ s time to talk about how I work with companies who want to seriously focus on growth .
A starting point for this will be setting goals . I often hear phrases like “ I want to double the business ” or “ I want to sell it one day and retire ”. Yet when I enquire about the plan to achieve that ambition , the answer can often be fairly vague :“ We have to work harder , maybe borrow some money ”.
The idea of ‘ just working harder ’ probably won ’ t work . Why ? If you just keep on working and thinking in the same way , nothing is likely to change substantially . For example , I recently worked with a business owner who was looking to eventually sell and they even had a value in mind .
I asked about the plan , as their valuation represented a significant increase in the current position . Their answer was ‘ to borrow and invest in a new sales person and see what happens ’.
The date for their exit plan was five years on and I was able to plot a path to this point , using their own valuation and demonstrated they would need to be doubling their revenue every year , assuming margins didn ’ t change .
The owner looked at the figure for the end of year one and went quiet for a moment and then responded with :
“ The only way we could do that number is to take on two more sales people , put three more on the road doing installations , as well as someone else in the office . We would have to drop two smaller contracts and start bidding for some larger ones , then look at how we could improve the margins , reduce supply costs with better bulk discounts maybe …”
I pointed out how their language , approach and energy had changed in seconds – just from setting a path towards a goal .
There was a huge ‘ wow ’ moment which produced a smile on the owner ’ s face – they had simply not thought in this way before .
We then spent time looking in more detail at how the targets might be achieved – where the margin could be improved , where volume break points would help , whether the current service and products had the potential and where other products or services would be needed .
This led to a growth plan which included expanded premises , a new software system , product development and most importantly , targeting a different tier in the supply chain .
This is the power of setting goals . They focus the energy and activities of the business in a way organic growth probably never will , transforming the chances of success and reducing the risks .
If I can support you to set goals and help your business grow , feel free to contact me for an initial conversation , free of charge .
07715008521
“ Goal-setting changes the way you work and drives business growth ”
For more info : www . pchbusinesssupport . co . uk
Business support helps Steve Vick International innovate to succeed
Bradford on Avon-based engineering company Steve Vick International ( SVI ) has not only released its new product range , SMARTester , but secured an entirely new customer base thanks to support from the innovate2succeed ( i2s ) programme run by Business West .
The Department for Transport estimates that utility roadworks and other highway work , cost the UK economy £ 4 billion each year . In attempting to reduce this cost they are constantly looking at new ways of using smart technology to help reduce environmental impact , social costs and at the same time provide economic alternatives to traditional “ open cut ” methods of installation , renewal or repair .
SVI has been at the forefront of developing and manufacturing products and techniques for the trenchless repair , renovation and decommissioning of pipes in the utilities industry and has recently introduced a new product that replaces the traditional use of water gauges for pressure testing . SMARTester tests the pressure in gas and water pipes and consolidates this with GPS positioning to not only allow accurate testing , but provide documented evidence that a pressure test has been carried out . The SMARTester uses Bluetooth technology to transmit data to a smartphone , using a purpose built app , allowing live pressure tests to be recorded and instantly sent back to an office database-saving both time and money .
SVI approached i2s for advice on bringing this new product to market . Whilst the product had been jointly developed and adopted by Wales & West Utilities , it faced barriers in reaching more technology- focused markets that existed outside
of its traditional engineering base . i2S specialists helped SVI to identify new customer segments and develop marketing strategies to sell to these new markets .
The programme also helped the firm to look at how they could employ innovation to drive efficiencies in their current premises . i2s experts assessed the company ’ s processes and made recommendations regarding a number of operations that could be improved or removed . These recommendations included innovation in the use of space , changing the U-shaped layout of the factory floor , stock location and innovation in stock handling processes . Significant savings were made through innovation in workflow , for example changing the workshop layout from a U shape to an L shape meant that pallets could be brought right to the edge of the workspaces , while relocating stock halved walking distance from around 12,000 steps a day to just 6,000 .
Andy White , finance director at SVI , said : “ innovate2succeed has been so beneficial , not only from a product and efficiency point of view , but also from a softer HR angle . We have been able to increase efficiency while improving staff morale through really simple steps . We now have better preparation , better planning and better processes in place . I would absolutely recommend the programme .”
For more info about the Innovate 2 Succeed Programme : i2enquiries @ businesswest . co . uk
26 THE BUSINESS EXCHANGE 2018