The forth step in turning your business around is to sit down with a pad and paper and run through your business, looking for any overlooked opportunities or under-utilised opportunities you can quickly take advantage of.
When you’ve identified them, you can decide whether you’d like to put them to work more effectively, or sell (or license) them to other businesses.
If you’ve been in business for more than a few months, you probably have one or more overlooked opportunities you could capitalise on, or assets you could be getting better results from.
Let’s look at some examples:
Monetising Overlooked Assets
- Your existing customer database is likely your most overlooked asset. Do you have a regular schedule of marketing promotions running throughout the year to capitalise on your customer’s continuing need and desire to buy new products and services?
- Do you have a fleet of vehicles that aren’t being used full time? Could you contact other businesses and offer to pick up or deliver their supplies, products or people during times when their capacity utilisation is low?
This would give you another income stream, and save the other company money they could redirect into more profitable activities.
- Do you have spare office, warehouse, factory, hard-stand, advertising space or parking areas you could lease to other local businesses?
- Do you have staff who are not fully engaged in working for you, who you could offer part-time to other businesses? What about a sales force, technical experts, administration staff or other specialised personnel you aren’t fully utilising?
- Is your business seasonal? What other products and services could you offer your customers during your traditional low season.
I remember hearing about a lady who owned a souvenir shop in an idyllic beach location that had a peak season that ran for just 4 months a year. In the off season, the local area was practically a ghost town, apart from the few lucky locals who lived there permanently.
She solved the seasonality problem by diligently building an email and direct mail database, and offered all kinds of “holiday stuff” to those people throughout the year, to remind them of the wonderful times they had spent on vacation.
This kept her store busy all year around, and helped to bring people back to her location each year to relive their happy memories, and make new ones. The whole area ended up benefitting from her desire to create more consistent cash flow for her own business.
Leveraging Under-Utilised Opportunities
- Could you approach your customers and suppliers who also serve your ideal customers, and collaborate with them to share resources, leads, marketing collateral and other assets you’ve both spent years developing? You have already established these close working relationships and built trust. Why not capitalise on them for everyone’s benefit?
- Do you already have a distribution network for your products and services? What would happen if you gave all of your distributors your best-performing marketing ideas, campaigns and point of sale materials to use in their businesses?
Once you’ve seen how effective the email campaigns I’ve given you above are for your own business, could you share them with your distributers, agents, retailers and others in your distribution network to help them increase sales on your behalf?
Or could you allow your distribution network to promote higher value bundles or packages of your most profitable products to increase their sales and profits so they needed to order more stock from you?
What if you allowed your distribution network to sell higher ticket bundles or packages using the email campaigns above?
The possibilities are endless…
- Do you have more than one core product? Have you implemented mandatory up-sell, cross-sell and down-sell flows into your sales process.
- Don’t have more than one core product? Then how about approaching other businesses that offers products or services to your same target market, and inviting them to supply other products for your up-sell, cross-sell and down-sell flow?
This is especially powerful because you get to share in profits that would normally be unavailable to you, and the company supplying the additional products does 98% of the work for you.
These are just a few examples of how you could leverage your overlooked opportunities or under-utilised assets and either put them to work more effectively.
ACTION STEP: Choose ONE of these activities and have somebody in your business implement it today. Then choose a new one each week and have them implement that too.
INVITATION: Each month we hold a limited number of Free Business Strategy Sessions designed to help business owners with everything from turning their enterprises around and back to sustainable profitability, to leveraging the assets of fast growing companies so they can grow even more quickly.
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If you’d like to schedule one of these Free and obligation free one-on-one sessions, let us know by email at email@example.com or call 1300740066 and we’ll set things up for you.
About The Author: James Huy Vuong is a CPA, Registered Tax Agent, Business Broker, Certified Exit Planner and the owner of Your Accounting Partners, an Associate of Negotia Group. Partnering with businesses from start to scale thru to sale.
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