It’s a philosophy for business development that relies on evolution, not revolution. It shuns disproportionate borrowing or investing for measured, manageable and sustainable growth.
Driving the 90% rule is the use of operating leverage as a marketing tool™.
Operating leverage is, essentially, the reliance on or commitment to fixed assets. Financial leverage is the reliance on borrowing, or debt, to increase production volume.
What differentiates pure operating leverage from the idea behind using operating leverage as a marketing tool? The latter focuses on how to get more out of what you already have (or almost have). It’s a five step approach that will change the way that you view your business … and help to identify, rank and map potential markets, services and products that you are already 90% capable of providing.
Think of the math. If the core 90% of your business grows at 5% a year, then that generates 4.5% annual growth. Now, add a new product, store, vertical or service that further expands your sales base by 10% and you achieve annual growth of 14.5%. At this rate, your business doubles in size in +/- five years and remains manageable in terms of financing, staffing and operating.
What business are you really in?
Re-think. Re-understand. Grow.
You are already 90% of the way there.
- Ken Tencer
September 10th, 2010 at 12:52 pm
An associate of Spyder Works said: “I really like the message that you are already 90% of the way there. Very positive. People are getting tired of so much negativity.
I love Re-think. Re-understand. Grow.
I read the first four sentences a few times. I liked the description of using operating leverage as a marketing tool. I get that.
The fourth sentence describing the difference between pure operating leverage and the idea of using operating leverage as a marketing tool was a bit unclear. I didn’t get the call to action. I am trying to look at this from a client’s perspective. Am I being overly concerned that when they read “by better understanding current and potential customers, core competencies….”, that they may inaccurately conclude that they already know this or have heard it all before.
So why listen to you?