What I Learned After Speaking To 60 Distressed Businesses

I have spent all of January and most of February talking to business owners who are in a bit of distress and looking for a change. I have spoken to around 60 people in all.

There is a pattern of what they are doing that is causing them pain.

They are doing the right things, but in the wrong sequence.

1 - They start with Promotion - spend a shit ton of time, energy and money on advertising and marketing to get the phone ringing...

2 - They get busy, so hire people to build their capacity and meet that demand.

3 - They quickly realise that those people cause them problems or are unproductive and start costing them money, so they realise they need a process.

4 - Time has passed managing and solving all the issues each of these stages has created, the good and the bad, and when they look at their profit at the end of the year, they cry into their beer.

When you properly consider this, this is completely back to front. 

If you turn it on it's head it will make you money, buy you time and allow you to scale without as much pain.

1 - PROFIT - Always always always - start with profitability - your pricing, your productivity, your gross profit, knowing your overhead, your conversion rates - knowing your numbers will help you plan - it will actually MAKE you think and plan.

Make sure that you can profitably deliver your actual service.

2 - PROCESS - Once you have worked that out - write out a process, a framework you know that works for you. Your way of doing things and the way you want things done. 

3 - PEOPLE - once you have that framework, you can better hold people accountable, train them around it to deliver predictable outcomes, as well as spiff them and pay them well because you know your profit margins. 

4 - PROMOTION - when you are ready and have laid the foundations, now you can promote the hell out of your business. But with this - start small, optimise and then maximise.

There is obviously a blend to all of this, and it is more of an art than a science - but the order in which you prioritise these activities will impact the amount of profit and pain you experience.

If you have maxed out, got burned out or you are looking for a way out, because your business isn't working out for you - then consider your priority of activity around these Four Ps of business.

Even when you are down and bleeding, you are still in the fight.

Stick with it.