Taking Your Business to the Next Level
August 20, 2014
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About Knowledge Bites
Knowledge Bites provides strategies for pivotal business skills broken into small digestible pieces. This months topic is Taking Your Business to the Next Level.
 60 min ‐ Two chamber experts provide relevant and valuable advice on two chamber businesses  30 min ‐ questions from the audience
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Speakers / Case Studies
Pam Hobday
Pamela Hurt Associates
W&T Graphix
Lisa Toutant
ELTE Inc.
The Sports Exchange
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Goals for Today’s Session
 Inspire action on your part
 Provide you with a SNAPSHOT of “The Next Level” of your business
 Review the new generation of Strategic Planning
 Share the Cash Cow analysis tool for product assessment
 Immediate application for your business
 Case study targeted for increase in net margin
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Case Study Process
We looked at the case study companies and reviewed the following:
 SWOT – gap analysis
 Financial assessment
 Reviewed Corporate: Background, Structure, Financial, Customer Profile, Current Goals
 Cash Cow Analysis
 Executed an NDA
GOALS
 Understand the current state
 Uncover opportunities for growth
 Create a realistic plan based on today
 Focus on applied growth
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Why Do a SWOT Analysis
 A strategic balance sheet of an organization
 One of the cornerstone analytical tools to help develop a preferred future
 Enables an organization to collectively understand itself
 Helps weave together your understanding of your company as it exists today to develop a future plan
 Establish a deeper level of insight from your perspective
 Apply to Cash Cow Analysis and forms the baseline for goal setting
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SWOT FOCUS
Themes
Patterns
•Keep it Simple
•Focus on the Organization
Rooted In Now •Look for Patterns
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Case Study Process
Applied the Cash Cow Model for growth potentials:  History – BCG
 This model allows any business to maximize your product lines, execute on diversification, test the market and products, start your present engine, align quickly
 Why do we use this? “Cash is King”
 How do we understand growth and protect the cash cow?
 Tie this back to the SWOT
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Case Study Process
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W&T Graphix
 Family owned business for 26 years
 Sole Proprietorship
 Provide custom screen printing, embroidery and promotional goods
 Deal with the seasonality of the Tahoe Basin
 3 full time employees
 Great accounts receivable
 Walk in traffic get instant service and attention
 Experience seasonal cash flow
 Comprehensive website
 Varied customer base
 Very community focused
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W&T Graphix ‐ Cash Cow
Products
vs.
Target Markets?
PROMOTIONAL ITEMS
SCREEN
PRINTING/EMBROIDERED
AWARDS
WEARABLE/LOGO
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W&T Graphix
Recommendations:
 Move a bright idea quickly into a cash cow role (product line currently providing largest net margin)
 Build on bright idea to provide more consistent revenue stream
 Build a business plan around the bright idea (to be implemented September 2014 ready for sales/marketing no later than November.)
 Build personal goals into the plan
 Start to make considerations for long‐term business succession planning : Establish succession/transition plan goals
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W&T Graphix
Recommendations:
 New equipment will allow increased production with new product line  Build liquidity
 Establish goals for online product line based on net margin and expand on your brand
 Incentivize longer term customers to focus on product commitment in the off season
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W&T Graphix
Implementation Strategies:
 Schedule 3 one‐hour weekly meetings focusing solely on making the new opportunity into a cash cow – build a business plan around the new cash cow
 Create personal goals for the next six months
 Practice aligned time management processes: calendar, prioritization, accountability
 Execute on your new plan
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The Sports Exchange
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Legacy business name but new owners
Family owned business 1 year as the current owners‐ 10 years in the business
Vision: To be the premiere outdoor outfitter in the region
6‐15 employees depending on the season
Outdoor Retail
Business has not had a focused marketing plan or brand in the past; great opportunity for rebranding
Deal with the seasonality of the Tahoe Basin
Winter sports market makes up over 50% of total business
SUP industry is exploding
One of the largest SUP retailers in North Tahoe
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The Sports Exchange ‐ Cash Cow
WINTER SPORTS
(ALPINE TOURING)
PADDLE SPORTS
SOFT GOODS
SKI SERVICES/ BOOT FITTING/RUNNING SHOES
PADDLE BOARD REPAIRS
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The Sports Exchange
Recommendations:
 Define key goals, strategies and project plans around each rising star to drive them into cash cows
 Evaluate each potential revenue streams for bright ideas and determine which has the opportunity to become a cash cow or a star.
 Focus on cash – revenue and margins are key. Do not increase expenses
 Focus on building and branding a core Cash Cow
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The Sports Exchange
Recommendations:
 Once cash cows are identified, create a new and exciting marketing plan
 Determine partnership opportunities carefully
 Consider renaming the business: Large lack of name recognition now
 Stay very focused
 Do not spray
 Build core businesses (cash cows while paying off debt, paying yourselves and building cash.)
 Watch your net margin on all product lines
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The Sports Exchange
Implementation Strategies:
 Develop a focused business plan for each potential cash cow
 Implement all winter sports opportunities immediately
 Develop a strategic marketing plan for each potential cash cow
 Re‐name
 Re‐brand
 Establish a weekly time management system to have business meetings/family meetings
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Thoughts on Family‐Owned Biz
 Must separate roles and define each person’s responsibilities
 Schedule focused meetings – create agendas, commit to topics, assign responsibilities, follow‐up
 Establish a personal “vision board”
 Find balance by successfully working together and having a life – support not only business but personal goals
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Case Study Nuggets
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Importance of process & time management
Conduct a cash cow analysis of your business
Align your business plan to the cash cow analysis
Act now
More product lines is not necessarily advantageous
Be tough on your “dogs”
Be realistic – incorporate sound business decisions with personal goals
 Cash is King
 Learn to leverage current resources; be creative
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Q&A
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Next Knowledge Bites
 September 17th ‐ Building a Strategic Marketing Plan
* Experts:
* Jim Kaspari, Summit Business Marketing
* Lisa Krueger, Martis Valley Communications
* Case Studies: * Autoglass Express Truckee * Hey Chef
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