Royston Guest | Built To Grow
As an active Business Growth Blogger regularly featured in print, online and on radio including BBC Radio, The Guardian, Mail Online, fresh business thinking.com plus many more Known as a passionate results-driven speaker, Royston challenges the status quo and inspires others to take action. His passion is to understand the human potential; helping business owners, leaders and entrepreneurs deliver accelerated, sustained and profitable business growth.
His new book “Built to Grow” is a proven time-tested model to unlock real business potential full of strategies, tools and ideas.
Royston joined us in the studio to discuss his new book Built to Grow.
Hi, I’m Royston Guest, CEO of PTI worldwide and author of the number one bestseller built to grow. Over the last two decades, I’ve literally worked with tens of thousands of businesses in 27 different countries. And a question I’m frequently asked is; Royston, is there a formula for growing business where you can deliver repeatable, predictable, sustainable. And the answer is absolutely there is and over the course of the next five minutes, what I want to do is share with you the essence of that formula distilled into six critical success factors.
I want you to think of this as an opportunity to just audit where you are on your business growth journey in answer to the question, “how grown-up is your business and as your business really built to grow?” So let me get straight into the formula with you. If you imagine. We have three motorway lanes and at the top of the motorway lanes the first critical success factor is your turnover or your revenue. And I’ve got great friend who set of his first business back in the 1980s, and he always tells a story that in his first year in business, he made more money than British Leyland and this is when British Leyland were at the Heyday footsie 100 business. And everybody looks to miss with his crazy and say to him. How did you manage to do that? And he said it’s really easy. In my first year in business, which later lost ten point two million pounds.
I made 282 pounds and the challenge is this, the revenue line is your vanity line and I guarantee one thing. If we had a roomful of 100 entrepreneurs or business owners leaders here right now. I’m asking the question about how’s business, how big is your business? 99% of them will quote a revenue figure. My businesses are two hundred thousand pound turn over half a million, a million, 10 million, 100 million. So this is the vanity line and it’s only one measure of success in your business. The second critical success factor, then is your profit and is it better to have a business that’s turning over a million pounds and making two hundred thousand pound profit. Or business turning over 5 million and losing a million pounds. I’m sure it’s a no-brainer in terms of how you would answer that, but too many business owners leaders are folks on the turnover line and not really understanding how that drives their bottom line profitability. Their gross profit and their net profit. And then the third critical success factor is cash, cash is the oxygen that feeds the growth of your business. And unfortunately, it’s cached stifles the growth of your business. And too many businesses not effectively managing the cash flow in the business, their debtor days and their credit today’s and the worst businesses in the marketplace haven’t worked with thousands over the last two decades are actually Professional Services. Particularly accountants who were the ones profess to the importance of managing your cash flow. So my question for you is do you really know your debt accredit stays. Are you siphoning off your VAT money and your tax money every single month?
So, you know how clean and what’s the working capital that you’ve got in your business? Then we come to the three Motorway lanes and in the slow motorway lane is about the proactive leadership of your cost base. What do I mean by that most business owners, most Business Leaders look at their cost base when times are tough when they’re going through a difficult period with the business. Where actually it should be about proactive leadership of your cost base every single month. Auditing your mobile phone contracts, auditing your Broadband provider, auditing the printers that you used. Are you getting the best deals so that you can proactively manage your cost base as you manage the growth ambitions in your business. Then if we flip over to the fast lane, this is about how you drive top-line profitable, profitable being the key word, revenue growth.
And I focused this and what I call your AMR strategy, which is about how you bring in clients through customers through the front door of your business, how you maximise the value of those customers that you’ve already acquired, and then also how you lock the back door of your business firmly shut. IE, through retention strategies and most business leaders, owners that I work with do not have their business growth strategy broken down into those three distinct book buckets of acquisition, maximisation ,and retention. And then finally your opportunity is in the middle motorway lane, which is about the productivity challenge. And how do you really maximise for every pound you spend what’s your multiplier in terms of the return that you’re going to be able to deliver. When Ben Hunt Davis was working with the Olympics team and he was one of the rowers in 1998.
There were 18 months out from the Sydney Olympics and the rowing team had not done well in Olympic Games, in any previous games for a couple of decades and they created a defining focus that was about will help the boat to go faster. And if he didn’t help the boat to go faster than they didn’t do it. And I think in business we needed defining question that stops as going down a pathway of what I call spray and pray, where you’re trying to be everything to everybody. And you have a laser being focused about where you’re going to get the best return for your time your effort and your resources by maximising the productivity challenge. And the question is simply this if it doesn’t add value to delivering a great customer experience or client experience or attracting customers and clients. Why are you doing it in the first place? So there you have it. There’s a snapshot of the built to grow formula the, blueprints that will allow you to deliver accelerated sustain and profitable growth broken down into six critical success factors. My final question for you as we end the session is simply this, is your business built to grow, how grown-up is your business?