The 60:30:10 rule to business growth
Learn the secrets of this winning formula and turn your business around
We have been lucky enough to work with many successful businesses that started out as just one entrepreneur with a big idea and an even bigger heap of ambition. Some of those entrepreneurs have achieved what others haven’t – year in, year out consistent or exceptionally fast growth.
We’ve seen many marketing strategies and ‘winning sales techniques’ telling Owner-Managers that it’s drive that will lead to this kind of phenomenal growth.
In our experience, that is only a small part of the story.
From our years working with thousands of businesses like yours, we’ve learnt that achieving growth is about tackling the things that are blocking your business from growing. We call these the ‘limiting factors’.
The problem with some of these marketing and sales techniques is that they don’t account for some of the other factors creaitng barriers outside of your sales and marketing. Standard limiting factors such as:
- The availability of cash to fund fixed assets and working capital
- The range of products and services you offer
- The quality of your products, services or staff
- The number of staff
- How much management time you have
- The size of your premises
This isn’t a complete list, because potential issues can come from anywhere. But what many businesses fail to realise, is that the thing that has helped them to grow in the past may not continue to work as they aim to get bigger. Many of those proven policies set out in the beginning can end up blocking the company’s chance to grow later on.
So what’s the solution?
Every business owner we’ve worked with who has achieved consistent growth year on year, has employed our 60:30:10 rule to deal with these limiting factors.
Reaching a point of consistent growth involves identifying the issues stopping your business from growing.
We find many Owner-Managers are good at identifying what the big immediate issue is, and putting all of their strategic time into addressing it.
However, focusing on the immediate problems can be a bit stop-start. You find that as soon as a challenge is overcome, you’re suddenly facing another.
The 60:30:10 rule involves spending 60% of your strategic time on the most pressing issue, 30% of your time on the issue which will become the most pressing , and 10% of your time on the one that follows.
Case study: 60:30:10 in practice
We worked with a business in which the number one most limiting factor to growth appeared to be shareholder’s time.
To resolve this, there needed to be a major reorganisation of management roles, in order to shift some responsibility over to the senior members of the team. The problem is, doing so would simply create too much work for those managers to deal with.
The answer? The business needed more staff. The next problem… there simply wasn’t the space for them.
So, applying the rule:
- 60% of time was spent seeking out and organising premises, whilst
- 30% of time was spent getting a significant recruitment programme underway
- Meanwhile, 10% of time was spent on documenting the management roles and responsibilities ready for the planned expansion
By the time the premises were available, interviews had mostly taken place, with one or two new employees already working their notice in their old job with a view to joining the team.
Sometimes, the 60% needs to be focused on something that doesn’t seem huge, but is the issue holding everything else back.
And sometimes it’s hard to see past those seemingly big immediate limiting factors, to look at the bigger picture and unravel all of the issues standing in your way.
If your business isn’t growing, or isn’t growing at the rate you’d like it to be this session is for you, you need to book into a Business Growth Discovery Session. Let an expert use this winning formula to take you from stand still to running growth.
Join our group of business owners boasting about consecutive growth year on year.