synergies-in-business

What mind-set do you need to create synergies in business and multiply the size of your business?

Are you waiting for something to change so you can multiply the size of your business? If your business is running well, chances are it’s your mind-set that’s holding you back! Since day one of your business launch, you’ve probably been in the mind-set of ‘manager’, i.e. the day-to-day doer and organiser in your business. And this is fine, until you are ready to experience the synergies in business that allow it to grow exponentially and free you from spending all your time and money on it.

Our latest blogs discuss the four steps before synergy in business. These are 1) controlling all aspects of the business, 2) finding your niche, 3) leveraging your business services and products, and 4) building a winning team. To read the blogs click here.

Once you’ve worked through these four highly rewarding steps, you are so close to stepping back from your business and becoming the investor or entrepreneur that you envisioned when you started your business. Can you taste that poolside cocktail already? The fifth step is called ‘synergy’. Synergy is about multiplying the size of your business exponentially, unreliant on your (the business owner’s) time and money. To create synergies in business, you can adopt strategies such as mergers/acquisitions, adding new products or services, expanding geographically, franchising or starting a related business.

As your business moves into a state of synergy, so too must your mind-set. You need to grow your thinking from that of a manager and business owner to that of an investor and an entrepreneur. Changing your mind set then not allowing yourself to slip back to the ‘doer’ is critical if you want to maintain synergies in business.

 

What is the mind-set of an investor or entrepreneur?
Investors (people who make money from their money) and entrepreneurs (people who make money from other peoples’ money) have a mind-set that allows them to increasingly escape their two biggest constraints; time and capital. This might be a new and strange position for you to be in, but those who can adapt to the new-mind set will succeed, while those who slip back into the mind-set of the doer or manager will probably not.

If you’ve designed appropriate systems for keeping the business running, trust that you can fully step out of the mind-set of the manager. This requires a shift to longer term thinking and to exploration of ideas that have less certain outcomes than those you encountered in day-to-day business management. Challenge yourself to think only in the long-term and make decisions based on that, instead of what could happen tomorrow or next week.

Adopting the right mind-set to ensure synergies in business requires certain skills, such as a broader understanding of different business models, investment strategies, higher-level financial management and a wider range of businesses and industries. It also requires you to focus on different measures, such as return on capital, enterprise value and portfolio mix. This will require more of your day-to-day attention than the usual Profit and Loss statements or ordinary management metrics. More of your time will be spent working outside your existing business as you start to explore the many and varied options for multiplying it. Embrace it!

From there, the scope for what you can achieve is almost unlimited!

 

What are some examples of great business synergies?

 

Great investors are really good at managing money so it produces more money. Investing your money for maximum returns involves leveraging your assets in clever ways. Leveraging the success of your first business to create a second or third company based on the original business model is an excellent way to achieve this. Similarly, franchising your venture allows you to sell entire businesses thereby growing your business more rapidly; unconstrained by limits on your time or your capital.

If you’re looking for some more advice about how to achieve synergy and multiply your business, you can download your free copy of the eBook Synergy – Run your business like a well-oiled machine here. Or you can register for our 6 Steps to Building a Better Business Seminar here.

 

examples-of-synergy-in-business

5 examples of synergy in business that take your business from organic growth to exponential growth

Are you at a stage where your business is running like a well-oiled machine, and you now have the time to think about exponential growth and multiplying the size of your business? Yes? Excellent, read on for examples of synergy in business. No? Click here to learn how to set your business up so you have the time and money to be able to say yes to the above!

So now that you’ve put in the hard yards in the stages of business mastery, finding your market niche, leveraging your business services and products, and building a winning team, your business now has the systems and processes in place that allow it to operate and make money without you being there. Welcome to the stage called synergy: multiplying your business!

Previously, organic growth of your business would have been expressed as a percentage, however the synergy stage is where you really look at multiplying the size of your business. How?

How can I multiply the size of my business?

There are some tried and tested methods for multiplying your business. They all involve YOU evolving from the business manager you once were, to the new and exciting challenge of being a true business owner, investor or entrepreneur in your business (and other businesses). Your business is ready for this stage because of the work you have put in, so we’re here to tell you that you are ready too, as long as you can truly remain in the mind-set of genuine business owner, investor or entrepreneur, and not be tempted to slip backwards into doing things in the business on a daily level.

5 examples of synergy in business:

 

  • Mergers and acquisitions – buying or teaming up with a complementary business and joining forces to grow faster.
  • Adding substantial new products and/or service lines. These will usually complement the products and services you already have, but they can be a completely new range.
  • Geographical expansion – selling interstate or internationally and having offices located in these areas. Expansion allows you to reach a larger base of target customers and therefore increases your revenue.
  • Franchising – creating a business model that can be replicated and sold to franchisees. You retain control of the core business elements but do not need to be involved in the everyday running of the franchised stores.
  • Starting a new complementary or related business that fits in with what you currently do. You have an advantage of already knowing the market and what does and doesn’t work, and knowing the needs and wants of your customer base.

 

ActionCOACH can guide you through any or all of these example methods specific to your business to get synergy happening in your business and help you reach your ultimate business and lifestyle goals. Register for the 6 Steps to Building a Better Business Seminar here to find out more or contact us via +61 (0)2 9146 4439 to speak with a Business Coach.

business-future

What does your Business future hold? Find out in 6 steps.

What does your business future hold? This is not an incense-smelling crystal ball question – this is a question that you (the business owner) should be able to answer with confidence. If you can’t, ActionCOACH is here to help you shape your business future and then make it a reality.

Think back to when you started your business. What was your ultimate goal? The early retirement? The yacht? You know the one. Your business future probably shone brightly in your mind’s eye and at the top of the business plan. But in between fixing things, managing things and completing daily tasks within your business, this end goal probably looks a little blurry.

It might sound back-to-front, but to get to your business future, let’s start with your business past and work forward. What are the steps you’ve taken so far, to get you to this point in your business, and what are the final steps needed to reach your ultimate business future (to move from the desk to the superyacht!)?

ActionCOACH defines 6 steps for building a better business:

  1. Mastery – moving from chaos to control
  2. Niche – reaching a predictable cash flow
  3. Leverage – creating systems for efficiency
  4. Team – structuring your business for growth
  5. Synergy – multiplying your business
  6. Results – exiting your business

We’ve blogged about mastering all the aspects of your business, finding your market niche, leveraging your business services and products, and building a winning team. So if you’ve been following along from steps 1 to 4, your business now has the systems and processes in place that allow it to operate and make money without you being there. Welcome to the stage called synergy: multiplying your business! ActionCOACH has in-depth reading material available for all of these steps, so catch up here if you need to.

Once you have reached step 5 ‘synergy’ you can start to multiply your business and really set things up to reach your end-goal. So you now have a few choices to make about your business future:

  1. Keep the business and enjoy the mostly passive income you receive and the lifestyle that comes with it.
  2. Prepare the business for sale and sell it (which will take you to step 6)
  3. Take the business to the next level, through options such as mergers or acquisitions, adding new products, geographical expansion, franchising or starting a new related business.

Think about which choice will see you happily sitting in the place you saw yourself when you started your business. It probably wasn’t sitting at your desk slaving away, right? Did you see yourself as an investor in the business, or perhaps an entrepreneur separate from the business? As an investor and an entrepreneur, your ability to earn a substantial income grows exponentially, and escape your two biggest constraints; time and capital.

It’s worth pausing to revisit why you started your business and how to get to the business future you want.

 

synergy-in-business

Synergy in Business – How to run your business like a well-oiled machine

Synergy, by definition, means two or more things interacting to produce an even greater effect. And by synergy in business, we mean the combined effect of the several parts of your business that you’ve been working on, that come together to create greater business success.

Let’s recap our 6 steps to building a better business:

  1. Mastery – moving from chaos to control
  2. Niche – reaching a predictable cash flow
  3. Leverage – creating systems for efficiency
  4. Team – structuring your business for growth
  5. Synergy – multiplying your business
  6. Results – exiting your business

We’ve shared our insights on the first four steps in our previous blogs. To get up to speed, click here.

Step five, synergy, is specifically for business owners who want to take their business to the next level, but still want to keep the business.

How do you know if you’re ready for business synergy?

If you are at a stage in your business where you don’t have to be involved in the day-to-day running of it, you are perfectly positioned to focus on synergy in business, and move yourself from being owner, to investor and ultimately entrepreneur.

What are some of the methods to achieve business synergy:

  • Mergers and acquisitions – buying or teaming up with a complementary business and joining forces to grow faster.
  • Adding substantial new products and/or service lines. These will usually complement the products and services you already have, but they can be a completely new range.
  • Geographical expansion – selling interstate or internationally and having offices located in these areas. Expansion allows you to reach a larger base of target customers and therefore increases your revenue.
  • Franchising – creating a business model that can be replicated and sold to franchisees. You retain control of the core business elements but do not need to be involved in the everyday running of the franchised stores.
  • Starting a new complementary or related business that fits in with what you currently do. You have an advantage of already knowing the market and what does and doesn’t work, and knowing the needs and wants of your customer base.

Your first challenge as you move from business manager to owner and investor, is to try to maintain your new role, rather than working in the business day to day. To help you achieve this, use your systems that keep the business running without you, and keep your long-term goals top of mind.

To achieve synergy in business, you’ll need skills such as a broad understanding of various business models, investment strategies, higher-level financial management and a wider range of businesses and industries. You will also need to focus on measures such as return on capital, enterprise value and portfolio mix. Most of your time will be spent working outside your existing business as you start to explore the many and varied options for multiplying it – i.e. creating synergy!

The two unavoidable constraints on all business owners and managers are capital and time. However once you become a true business owner and your existing business operates without you on a day-to-day basis, you’ll have more time available, and your income is no longer limited by your time. As you move toward becoming an investor (i.e. making money from your money), the former limitation can be virtually removed. As you become an entrepreneur (i.e. someone who makes money from other people’s money), you can largely escape the second limitation as well.

At this point of business synergy, your scope for success and what you can achieve is almost unlimited!

If you’re looking for some advice about how to multiply your business…

Click here for a free one-on-one initial consultation 

Or

Register here for our free 6 Steps to Building a Better Business Seminar.