Navigating generational differences and growing a family business: To grow a family business, address generational differences, niche down, make acquisitions, and aim to be an investorpreneur for a profitable, independent enterprise
Growing a family business while transitioning from working in it to working on it, requires addressing various challenges. Josh Edge, a guest on the Business Broadcast podcast, shared his experience of taking over a family business, Design Office UK Limited, which specializes in the education sector. He aims to transform it into a profitable enterprise that can operate without his constant involvement. The first challenge is generational differences in business management attitudes. The second challenge is niching down and growing the business through acquisitions. The third challenge is multitasking and managing various aspects of the business. To overcome these challenges, Josh aspires to be an investorpreneur, focusing on building a successful business that can run independently. In the next year, he aims to have Education Office as a separate company with a turnover of at least £100,000, making acquisitions, and allowing his parents to retire comfortably. Ultimately, the goal is to be happy and content with the business and its growth.
Focusing on a niche leads to better profits and less competition: By prioritizing customer service, maintaining margins, offering discounts, and effectively managing time, businesses can thrive in their niche and generate significant profits.
Having a clear vision for your business and focusing on a specific niche can lead to better profits and less competition. The speaker shares an example of a business that includes a group of companies, a design office, an education office, and a property investment company, aiming to make £1.5-£2,000,000 per year. While they prioritize excellent customer service and value, they understand the importance of both maintaining margins and offering discounts to attract customers. The speaker also mentions his Entrepreneurs University, offering weekly coaching for business growth at an affordable price. Another key point is the importance of time management, as the business owner balances daily tasks with evening work and learning. Capital on Tap, a business credit card service, is highlighted as a valuable resource for interest-free credit and cashback or Avios points.
Using Captor on Tap for business expenses can offer financial benefits: Josh's family business in Cheshire aims for a £1.5M turnover, allocating profits towards materials, wages, and building rates, while studying monthly management accounts with Sage to understand finances better. James Sinclair recommends Captor on Tap for financial benefits and offers a £100 incentive.
Using a Captor on Tap card for business expenses can provide financial benefits through cashback or reward points. James Sinclair personally recommends this service and offers a £100 incentive for signing up through his team. As Josh shared, his family business in Cheshire is currently growing towards a £1.5 million turnover, aiming for a net profit of 1% when reaching that goal. The profits will be allocated towards materials, wages, and building rates. The family has recently started studying monthly management accounts in more detail, using Sage, to better understand their financial situation and goals. One of Josh's main challenges is transitioning from working in the family business, as his father has for the past 27 years, to working on it, focusing on a CEO role. Despite some differences in attitudes, his parents support his ambition.
Discovering Core Strengths and Focusing on Business Growth: Identifying and focusing on core strengths can lead to business growth. Having a strategic conversation with a business partner about delegating responsibilities and focusing on growth can lead to a better company structure and significant growth.
Identifying and focusing on your core strengths and responsibilities within a business can lead to significant growth. The interviewee recognized that his day-to-day operations, such as signage production and client meetings, were important but not where his true value and passion lay. In a perfect world, he wanted to focus on generating sales, marketing, and exploring new technologies and acquisitions for the business. However, he was currently spending most of his time operating the business and only had limited hours to dedicate to growth. To make a change, the interviewee suggested having a strategic conversation with his father, who currently managed the day-to-day operations, about delegating some of his responsibilities and focusing on growing the business. He proposed a plan to become the sales and business development director for the next 24 months, with the goal of reaching a £1,000,000 turnover. To make this possible, he would need his father to handle the day-to-day operations for 90 days, allowing them to afford and cash flow for a new hire to take over. This conversation may not be easy, as families can sometimes make it difficult to have strategic conversations. However, the interviewee believed that his father was open to such a conversation and that it could lead to a better company structure and more significant growth for the business.
Hiring non-family members for business growth: Investing in experienced hires for sales and revenue growth can lead to significant business expansion in the education sector
While it's important for family members to own a business, it doesn't necessarily mean they should be the ones running it. Hiring non-family members can bring new perspectives and help grow the business. When it comes to expanding the business through acquisitions in the education sector, finding the right people to manage and grow the turnover can be more challenging than finding someone to manage the day-to-day operations. It's crucial to invest in the right hires and not penny-pinch on salaries. The speaker emphasized that finding a salesperson is harder than finding someone to manage orders. Therefore, focusing on growing sales and revenue should be a priority, and bringing in experienced professionals to help with this can lead to significant business growth.
Be careful with key person-driven businesses in marketing and design acquisitions: Focus on businesses with established teams and contracts to mitigate risk of client loss post-acquisition. Build a pipeline and allow time to put operations in place for successful acquisitions. Avoid overpaying and consider hiring specialists or building team internally to leverage client base and recurring revenue.
When considering acquisitions in the marketing and design sector, it's crucial to be cautious about key person-driven businesses. These businesses often rely heavily on the relationships the owner has with clients, and when the owner leaves, it can be challenging to retain those clients. Instead, focus on businesses with a team in place and established contracts. Additionally, building a pipeline of potential acquisitions and allowing time to put operations in place can help ensure a successful acquisition and the ability to afford a team to focus on customer acquisition. It's essential to avoid overpaying for these types of businesses as you may only be buying a profitable job rather than a profitable business. Instead, consider employing specialists in specific areas or building your team internally to leverage their existing client base and recurring revenue.
Focus on customer acquisition and retention: Maximize profitability by focusing on new customers and retaining existing ones with excellent customer service and niching down to serve specific customers who value quality.
For a business to thrive, it's crucial to have a clear division of labor between acquiring new customers and retaining existing ones. The person responsible for business development should focus solely on bringing in new revenue, while the team should handle customer service and upselling. This approach allows for building strong customer relationships and maximizing profitability. Another key aspect is niching down and focusing on specific services where the business can charge a premium due to expertise. This not only helps in attracting the right customers but also in maintaining higher profit margins. Moreover, it's essential to understand that not every customer is worth pursuing. It's important to identify the ones who value quality and are willing to pay for it. This approach not only helps in maintaining a healthy profit margin but also in building a strong brand reputation. In summary, the takeaway is to focus on acquiring new customers and retaining existing ones with excellent customer service, while also niching down and identifying the right customers to maximize profitability.
Focus on long-term growth, not just short-term gains: Instead of solely focusing on increasing sales, cutting costs, and increasing margins, consider offering value-added services or packages to provide greater value to customers and invest in staff or resources for long-term growth.
While increasing sales, cutting costs, and increasing margins are important for business growth, it's crucial not to do so at the expense of the business's long-term health. Instead, consider offering value-added services or packages rather than discounting prices. For instance, offering a free service or product alongside a paid one can provide greater value to customers than a discount, which may only seem like a good deal in the short term. Additionally, investing in staff or other resources can help a business grow and ultimately lead to greater profits. So, while it may be tempting to focus solely on short-term gains, it's essential to keep the long-term growth of the business in mind.
Providing additional value to customers: Offering value-added services, focusing on customer service, and communicating benefits can help businesses justify higher prices and create a positive customer experience.
Providing additional value to customers beyond a simple discount can result in higher perceived value and customer satisfaction. This can be achieved through various means such as free content marketing, added services, or a strong customer service experience. By focusing on the value proposition, businesses can differentiate themselves from competitors and justify higher prices. For example, instead of reducing a website design price from £5,000 to £2,500, a business could offer additional services such as free videos and social media posts, maintaining the £5,000 price tag but increasing the overall value for the customer. This approach can lead to better customer retention and a stronger brand image. Moreover, transparency and communication about the value and benefits of the services can help customers understand the worth of their investment. Acknowledging that there are cheaper options but emphasizing the quality, expertise, and commitment to customer service can make a significant difference. Incorporating retainers and long-term partnerships can also be beneficial for businesses, providing a steady income stream and allowing for deeper relationships with clients. In summary, offering value-added services, focusing on customer service, and communicating the benefits can help businesses justify higher prices and create a positive customer experience.
Investing in Video Marketing for Business Growth in Education Sector: Hiring a videographer for a retainer agreement offers comprehensive marketing solutions and reaching a large audience in the education sector can lead to significant business growth.
Video marketing is a powerful tool that businesses, particularly those in the education sector, should consider incorporating into their marketing mix. Hiring a videographer and establishing a retainer agreement can provide a comprehensive marketing solution, including photos, videos, website updates, and prospectus design. Niches can be profitable, but it's essential to focus on a large enough audience to sustain growth. Remote acquisitions in the education sector are possible, but careful consideration should be given to each deal's specific circumstances. Overall, investing in video marketing and niching down into a large audience can lead to significant business growth.
Welcome to the Business Growth Podcast: Listeners are encouraged to check out the YouTube channel for valuable insights and resources to help businesses grow, and to consider Capital on Tap for business financing solutions.
This podcast is dedicated to helping business owners grow their businesses. The host, James Sinclair, expresses his gratitude to his listeners and viewers, especially those who are new to his YouTube channel. He also thanks Capital on Tap for sponsoring the podcast. James encourages listeners to check out his YouTube channel and provides contact information for those interested in learning more about Capital on Tap. He ends the podcast by asking listeners to rate, review, and subscribe to help spread the message and reach more business owners. Overall, the podcast aims to provide valuable insights and resources to help businesses succeed.
The Struggles of Growing a Family Business
Recent Episodes from James Sinclair's Business Broadcast podcast
£27k/month Business doesn't have the right Model for Profitability
In this episode of the podcast we speak with an Osteopath entrepreneur generating £27k per month in revenue, he has recently opened his 2nd location. He is now at a crossroads between continuing to grow or enjoy a lifestyle business? He might not even be in the right business for the profitability he craves, find out more in this episode.
Welcome to the Business Broadcast Podcast! Each week James brings on the show an entrepreneur who shares their biggest challenges and struggles in business.
James coaches the business owner through these challenges by asking those hard hitting questions in order to get to the bottom of these problems and help the business owner soar to success.
Find out more from Andrew here: Heavitree-osteopaths.co.uk
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$240k/month NICHE Travel Business wants to SELL! But how?
In today’s episode James speaks with a business in Australia doing $240k per month with a niche travel business! The business owners wants to plan to be able sell this business, but not actually sell it. Let's find out more.
Welcome to the Business Broadcast Podcast! Each week James brings on the show an entrepreneur who shares their biggest challenges and struggles in business.
James coaches the business owner through these challenges by asking those hard hitting questions in order to get to the bottom of these problems and help the business owner soar to success.
Find out more from John here: www.australianracingtours.com.au
Find out your Entrepreneurial DNA and take our '8 Traits of the Greats' Quiz: https://jamessinclair.scoreapp.com
Try Entrepreneurs University 14 Day FREE Trial Here ►
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Get your tickets to our next event here ► https://www.jamessinclair.net/events
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£12,000/month Tennis Coach works for Purpose over Profit!
In today’s episode, James sits down with Tom, a successful tennis coach earning £12,000 per month. As Tom considers scaling his business, he reflects on what he truly wants—whether it’s growing a large company or opting for a more balanced lifestyle business. Not everyone is suited for a major expansion, and finding the right path is key.
Welcome to the Business Broadcast Podcast! Each week James brings on the show an entrepreneur who shares their biggest challenges and struggles in business.
James coaches the business owner through these challenges by asking those hard hitting questions in order to get to the bottom of these problems and help the business owner soar to success.
Find out your Entrepreneurial DNA and take our '8 Traits of the Greats' Quiz: https://jamessinclair.scoreapp.com
Try Entrepreneurs University 14 Day FREE Trial Here ►
https://jamessinclair.net/entrepreneurs-university-free-trial/
Get your tickets to our next event here ► https://www.jamessinclair.net/events
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
Watch the podcast on YouTube ► https://www.youtube.com/@jamessinclairspodcast
This Start Up Business Needs A Lot of Cash & Huge Volume to work
In this episode we have a different conversation to normal with a start up entrepreneur. She wants to get into a space that's education within healthcare using technology. This is a very hard business which needs millions in start up cash and huge volume!
We are going to try our absolute best to give her our best advice... strap yourselves in gang.
Welcome to the Business Broadcast Podcast! Each week James brings on the show an entrepreneur who shares their biggest challenges and struggles in business.
James coaches the business owner through these challenges by asking those hard hitting questions in order to get to the bottom of these problems and help the business owner soar to success.
Find out your Entrepreneurial DNA and take our '8 Traits of the Greats' Quiz: https://jamessinclair.scoreapp.com
Try Entrepreneurs University 14 Day FREE Trial Here ►
https://jamessinclair.net/entrepreneurs-university-free-trial/
Get your tickets to our next event here ► https://www.jamessinclair.net/events
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
Watch the podcast on YouTube ► https://www.youtube.com/@jamessinclairspodcast
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
£500k/month Business has HUGE Cashflow Issues!
This £500,000 a month project management business has 35 employees but everything is not going swimmingly. They are still struggling to get paid, cashflow, bringing in more sales and building a pipeline because their customers only need them once.
Welcome to the Business Broadcast Podcast! Each week James brings on the show an entrepreneur who shares their biggest challenges and struggles in business.
James coaches the business owner through these challenges by asking those hard hitting questions in order to get to the bottom of these problems and help the business owner soar to success.
Find out your Entrepreneurial DNA and take our '8 Traits of the Greats' Quiz: https://jamessinclair.scoreapp.com
Try Entrepreneurs University 14 Day FREE Trial Here ►
https://jamessinclair.net/entrepreneurs-university-free-trial/
Get your tickets to our next event here ► https://www.jamessinclair.net/events
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Watch the podcast on YouTube ► https://www.youtube.com/@jamessinclairspodcast
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
This Niche Gymnastics Entrepreneur needs the Confidence to think Bigger
We are speaking to a business that makes gym equipment. It has brilliant branding but it's making a pitiful amount of money and the entrepreneur is thinking too small!
It is our job to up that thinking and get him making some money, watch here to see what we would do with this business.
Welcome to the Business Broadcast Podcast! Each week James brings on the show an entrepreneur who shares their biggest challenges and struggles in business.
James coaches the business owner through these challenges by asking those hard hitting questions in order to get to the bottom of these problems and help the business owner soar to success.
Find out your Entrepreneurial DNA and take our '8 Traits of the Greats' Quiz: https://jamessinclair.scoreapp.com
Try Entrepreneurs University 14 Day FREE Trial Here ►
https://jamessinclair.net/entrepreneurs-university-free-trial/
Get your tickets to our next event here ► https://www.jamessinclair.net/events
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
Watch the podcast on YouTube ► https://www.youtube.com/@jamessinclairspodcast
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
£25k per month Meal Prep Business Needs to Expand his Market Opportunities
This entrepreneur has a meal prep business doing £25,000 a month but it is such a difficult business to make money from and hard to keep your customers for a long period.
But myself and JB have some old school ideas that will help grow his market and get consistency into the business, take a listen.
Welcome to the Business Broadcast Podcast! Each week James brings on the show an entrepreneur who shares their biggest challenges and struggles in business.
James coaches the business owner through these challenges by asking those hard hitting questions in order to get to the bottom of these problems and help the business owner soar to success.
Find out your Entrepreneurial DNA and take our '8 Traits of the Greats' Quiz: https://jamessinclair.scoreapp.com
Try Entrepreneurs University 14 Day FREE Trial Here ►
https://jamessinclair.net/entrepreneurs-university-free-trial/
Get your tickets to our next event here ► https://www.jamessinclair.net/events
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
Watch the podcast on YouTube ► https://www.youtube.com/@jamessinclairspodcast
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
This entrepreneur is a presenter on BBC 1 but still struggles getting customers
This entrepreneur (ex professional surfer, ex DT teacher) has an amazing Bespoke Furniture & Metal Business doing £150,000 with 13 staff members... he is that good at it he is a presenter for a show on BBC 1!
But even he has problems with cashflow, getting customers and staff, check out this fascinating episode to see how we can help this entrepreneur.
Welcome to the Business Broadcast Podcast! Each week James brings on the show an entrepreneur who shares their biggest challenges and struggles in business.
James coaches the business owner through these challenges by asking those hard hitting questions in order to get to the bottom of these problems and help the business owner soar to success.
Find out your Entrepreneurial DNA and take our '8 Traits of the Greats' Quiz: https://jamessinclair.scoreapp.com
Try Entrepreneurs University 14 Day FREE Trial Here ►
https://jamessinclair.net/entrepreneurs-university-free-trial/
Get your tickets to our next event here ► https://www.jamessinclair.net/events
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
Watch the podcast on YouTube ► https://www.youtube.com/@jamessinclairspodcast
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
£50k/month Butchers is Buying Businesses to Expand but has Challenges to Overcome
This 25 year old has built a chain of butchers shops, he is even in the game of buying them now! With 50k per month of revenue things are looking great for this entrepreneur but like almost every business owner, there is still some very common problems for him to overcome, find out more.
Welcome to the Business Broadcast Podcast! Each week James brings on the show an entrepreneur who shares their biggest challenges and struggles in business.
James coaches the business owner through these challenges by asking those hard hitting questions in order to get to the bottom of these problems and help the business owner soar to success.
Find out your Entrepreneurial DNA and take our '8 Traits of the Greats' Quiz: https://jamessinclair.scoreapp.com
Try Entrepreneurs University 14 Day FREE Trial Here ►
https://jamessinclair.net/entrepreneurs-university-free-trial/
Get your tickets to our next event here ► https://www.jamessinclair.net/events
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
Watch the podcast on YouTube ► https://www.youtube.com/@jamessinclairspodcast
Apply to be on my podcast here ► https://jamessinclair.net/podcasts/
This Crane Lifting Business has great potential but this entrepreneur is thinking too small
This entrepreneur has built a company teaching people how to drive cranes so people can earn £50,000 a year. He is getting good money but not enough for where he wants to get to.
In order for this business to grow this entrepreneur needs to think bigger! Watch this episode to see how we can grow this business.
Welcome to the Business Broadcast Podcast! Each week James brings on the show an entrepreneur who shares their biggest challenges and struggles in business.
James coaches the business owner through these challenges by asking those hard hitting questions in order to get to the bottom of these problems and help the business owner soar to success.
Find out your Entrepreneurial DNA and take our '8 Traits of the Greats' Quiz: https://jamessinclair.scoreapp.com
Try Entrepreneurs University 14 Day FREE Trial Here ►
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Get your tickets to our next event here ► https://www.jamessinclair.net/events
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Related Episodes
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MY $250k MISTAKE (and how to avoid it) 💵🔥💵🔥(ALL GYMS WHO WORK WITH US PLZZ LISTEN) ...and the ONLY strategic advantage a microgym has in the marketplace to command premium prices... | Ep 55
"Like every time you don't take money outta your business, you're doubling down." Today, Alex (@AlexHormozi) discusses the mistake of expanding a business too soon and spending money on unnecessary equipment instead of focusing on customer service. He advises gym owners to prioritize stacking cash and increasing profit margins before considering opening a second location.
Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.
Timestamps:
(1:55) - Advantage: high-quality customer service and experience.
(4:14) - Learn from mistakes, avoid financial pitfalls.
(5:11) - Keep making money, stack cash.
(6:44) - Take home profits before second location.
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Follow Alex Hormozi’s Socials:
LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition
Culver's: Craig Culver
Craig Culver says that when he opened the first Culver’s restaurant in a small Wisconsin town, there were three cars in the parking lot on a good day – and two of them were his family’s. Those early years of selling frozen custard and ButterBurgers were hard, but the business was in Craig’s blood. He grew up working in restaurants run by his parents, and Culver’s was a family affair too—one that was more challenging to run than a typical burger joint because of its large menu, with pot roast, soups, and fried fish. The restaurant wasn’t supposed to grow into a behemoth chain, but it franchised quickly, and today there are nearly 900 across the country. On a per-restaurant basis, it’s one of the most profitable quick service restaurants in the country.
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
AVWeek Episode 275: We Value You
257: Karen Walker: CEO Secrets to Sustainable Business Growth
Karen Walker is an executive coach, consultant, speaker and author focused on helping senior leaders create internal strategies that support their organizations’ external growth. Decades ago, Karen helped lead the (then) fastest growing - and fastest to $1 billion in revenue - company in American history: Compaq Computer. After working at Compaq for fourteen years, with annual revenues growing to $15 billion, she left to begin her consultancy.
Karen now serves as an executive advisor, coach and consultant to CEOs and senior organization leaders looking to grow their companies — with outcomes including IPOs, acquisitions, market share increases, and dramatic leadership development. Karen’s work has enabled sustained growth in a multitude of companies, including startups, Inc. 500 and Fortune 500 firms.
Karen’s new book, No Dumbing Down: A No-Nonsense Guide for CEOs on Organization Growth teaches a company’s senior-most leaders how to do a job only they can do: aligning the organization’s internal and external strategies for profitable, sustainable growth using 5 key strategies.
Why do leaders need this guidance? The problem is misunderstanding what it takes to grow. When most companies try to grow, they invariably over focus on sales and revenue-growth — at the expense of making sure they’ve aligned the infrastructure needed to support that growth.
The result? Sales outpace the company’s ability to fulfill its promises. Suddenly, product quality drops; employees get overwhelmed by rework; customers grow dissatisfied as commitments are missed; firefighting becomes the norm; top people run for the exits; and the company’s reputation tanks.
In today’s conversation, Karen shares the story of Compaq, and outlines the 5 strategies covered in her book, designed to help senior leaders avoid the common pitfalls of organizational growth. As an experienced hyper-growth leader herself, she offers finer distinctions that every leader and entrepreneur can learn from in order to go from startup to grownup in an efficient and sustainable manner.
Key Takeaways
- In a hyper-growth company you really see the interdependence within the team – it’s about optimizing the whole vs maximizing any one function.
- A team can only perform at the level of the lowest performing member.
- ‘A’ players can carry a team for a while but eventually they will leave.
- There’s a responsibility of senior leadership to ensure they are aligned internally and able to scale.
- You have to set aside time in your calendar where you clear your mind and just think.
- Grow or die - there is no steady state in the world. If you’re in steady state, you’re actually in decline.
- It’s not just what is done, it’s how it’s done, because that’s what is sustainable over the long term.
- Not all problems have to be solved, and not all problems have to be solved by you.
Episode Show Notes: https://leadersoftransformation.com/podcast/leadership/257-karen-walker-business-growth
Check out our complete library of episodes and other leadership resources here: https://leadersoftransformation.com
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