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