A big update and what's next (5)
Because that's what this is - a big one, which is looking back at 2019, update on what I am busy with these days and looking forward to what’ll be next.
In 2019, we almost doubled our turnover, with the same amount of staff and made big improvements on our bookkeeping system. Other import things that got done were the new multilingual magento 2 site, a push towards our own brand and more regular videos on our channel.
Oh, and we bought a competitor (small one)
What made things difficult is that to keep up with the growth and the investments is cash flow. We have to pre-finance a lot of VAT payments, because we pay in a lot of countries on a monthly basis, and get it back in a 4 month cycle.
That, and having around 400K in stock and no outside financing, means it can sometimes get tight.
Which feels very off, because you are profitable, growing. Have a great bank balance in the beginning, only to see it dwindle towards the end of the cycle.
Scaling up
So knowing that and with ambitious plans for the next years, I joined a 3 month online program from the growth institute. This is the company of the author of the book “Scaling up”.
Having deadlines, coaching and online session will force me to get this done and set the foundation,practices and direction fort he next few years.
I highly recommend the book (Scaling Up – Verne Harnish) as it gives you the right things to focus on, if you are a growing company that is already doing a couple of million and has a team (ideal size to start is with 10 people).
Focus areas are people, cash, strategy and execution.
The targets I set are 11 million and 1.1 million net profit within a few years. And the Big Hairy Audacious Goal (BHAG) of 25 million and 2.5 million in profit.
That last part will take a bit of time, especially since I want to maintain a good net profit percentage.
How to get there
Like I mentioned in a few other posts, it’s impossible to pedict the future. So it’s all about making small bets.
When something takes off or shows promise, we commit more resources to it, so we can scale it up.
But that’s just on the product / promotion level.
When you have a small business (less than about 20 people), a lot of the growth of the company is tied to how much you grown yourself.
Which is why learning really matters.
And why I read a lot. And listen to audiobooks in the car.
Then write down what I learn and take action.
Which is the important part. I often see a quote about the CEOs reading 50 or so books a year. I don’t get close to that.
Because when you read books that have an impact, there’s work to be done. Processing the information, figuring out ho wit applies to you and your business. And how you can implement it in your business.
So I read about 20 books a year. And my recent reading includes a lot of behavioral science books.
As a recommendation – The choice factory by Ricard Shotton – is a good example and has very practical advice.
Reaching out and coaching
To build more connections with the local community and people in business in general, I have allocated more time to travel and go to events.
Travel and exploring is a lot of fun, even though it does take up quite some time.
However, it’s good to meet people face to face, as it takes things to another level
So 2020 might just be the first time I'll be able to go to an AW conference..
In both the ecom and local business community, there has been a lot of demand for guidance / coaching, so I’ll be offering that in 2020.
It’s something I enjoy and I have quietly been developing a frame work for that. It’ll be a lot of fun and for the right people / business, it’ll be of massive value.
For me, it’ll be fun to help people scale their businesses. It’s interesting to see that coaching works in different industries, as I have even coached someone in the b2b financial services industry.
Send me a message if you are interested. I’ll have up a very limited amount of people, to ensure they get massive value.
Apart from that, I’ll of course continue posting here. I planned to do one post a week, but that proved to be too much, given the amount of work the business takes.
And the fact that there’s more to life than just business.
2020 and beyond will offer lots of opportunities, especially since we’ll likely see a down market coming. I see some signals of that now.
This is not bad at all, as change offers opportunities.
So get ready to make the most of it!
But whatever your time allows, we're glad you're doing that, your posts are pretty much always a great read, just like this one!Looking forward to your next one... and definitely stop by our booth if you ever make it to any AWC
@matuloo - thanks and if I come over, I'll definitely stop by!
It’s something I enjoy and I have quietly been developing a frame work for that. It’ll be a lot of fun and for the right people / business, it’ll be of massive value.
It would definitely be amazing to meet you in person if you'd attend the next AWE/AWA!
Best wishes to you on scaling your business to new heights in 2020!
Amy
Thanks Amy - would love to meet you there.
Can't promise anything yet, but it's high on my list
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