On today’s podcast, Lewis Schiff from Birthing of Giants and Stephen Halasnik from Financing Solutions discuss the critical factors in building a business to accelerate to a billion-dollar company. Business owners that aim to reach a billion-dollar mark have to absorb the practices of business giants by weaning their businesses off parochial practices. In other words, you should build your business as if you’re going to sell it by adopting the standard that’s generally obtainable in the business world.
Summary
Preparing For the Capital Market
You may have launched your business from a kitchen table; now it’s time you turned it from money maker to moonshot. Building a business to leap into a billion-dollar company requires much consideration. Businesses that initially grew organically need to find ways to accelerate to a 10 million dollar benchmark, which is a turning point in a business growth trajectory. Plus, it’s when investors become pretty interested in your business.
When building your business into a billion-dollar company, there are critical questions to consider as a business owner. For instance, how much does your business reflect your personal business style? When investors look inside your business, does it resemble other companies? Plus, how many of your family and friends hold essential positions in your business? These things go on inside a small business that can undermine the capital markets’ interest. Put differently, Strategic investors, private equity, and banks, among others, hardly invest in a business that is so personalized in its mode of operations.
As a business owner that would love to maximize the value of their business to reach a billion dollars, you should start by addressing the above issues long before anybody starts looking under the hood.
Building Your Finance
For business owners, building a scalable business involves:
- Finding areas for growth.
- Creating a vibrant marketing team.
- Building a goal-oriented and performance-driven workforce.
If your current business model isn’t scalable enough to drive your business growth, you should rethink your model.
Marketing is essential in the growth and revenue generation of every business. In fact, it’s the heartbeat of every business operation. There’s no better way for people to get to know your product than leveraging an effective marketing strategy to build your brand. Through effective marketing techniques, businesses can broaden their relevance and increase their addressable market.
In addition, motivated employees are key to the success of any business. Business owners should strive to recruit passionate and diligent people to help in the day-to-day workings of the business.
Sales Optimization
Building an effective sales force is one of the great ways to scale your business. An optimized sales force is a significant differentiator between companies that scale and those that stall. Moreso, adequate research and rigor are necessary for closing deals with customers.
Technology has brought many game-changing solutions that help amplify sales. Today, one can easily access tools that effectively maximize sales. Business owners should build a sophisticated management approach to sales in order to scale. In other words, the sales process should be made systematic, repeatable, and scalable.
Efficient Management
There’s an evident connection between effective management structure and revenue generation in businesses. Building a business involves having an effective management team that can take your business to the next level. However, finding the right people for your business is the most challenging task in getting a business up and running. But, it has the most significant payoff in the long term. Working with a talented and passionate business team ensures that your business can operate without your presence.
An effective management structure that isn’t parochial brings the best management experience for businesses. Every business owner should put in place a sophisticated management strategy that resembles the most potent structures based on templates designed by successful companies they love.
Bottomline
Effective business management is necessary for business growth and development. However, there is no one-size-fits-all approach to building a business that scales to a billion dollars. Every business owner should constantly strive to come up with the most effective, tested, and trusted method that facilitates business operation and revenue generation.
Big breakthroughs and progress can’t happen in silos. Business owners should always be on the lookout through constant research and consultation to leverage the best business practices that add enormous value to their business. Leveraging innovative technologies that align with your business core vision is a great way to accelerate your business value.
However, the general rule of thumb for making the leap to a billion-dollar company is, whether you’re ready to sell or not, you should build your business as if you’re going to sell it in order to leverage best practices in the capital market readiness.
Learn More About Our Guest
Lewis Schiff is the Chairman of the Board of Experts for Birthing of Giants’ Fellowship Program and Executive Director of Moonshots & Moneymakers: The Oxford Innovation Conference for American Entrepreneurs. He founded Inc. Magazine’s Business Owners Council where he interviewed some of the most accomplished entrepreneurs in the world. He has authored or co-authored several books on success, including The First Habit: The One Technique That Can Change Your Life and Business Brilliant: Surprising Lesson from the Greatest Self-Made Business Icons. Over the past two decades, he built and sold two media businesses to publicly-traded companies, iVillage, and TheStreet.com.
Learn More About Financing Solutions
Financing Solutions provides an easy-to-setup unsecured business line of credit to small businesses. The small business financing product is a great cash backup plan that costs nothing to set up, nothing until used, and is inexpensive when needed. Financing Solutions is rated A+ by the Better Business Bureau and 5 stars by the BBB/Google Reviews.
Unlike a traditional business bank loan, our business credit line requires no collateral or personal guarantee (except in the cases of fraud) making it an excellent alternative business financing option. Small businesses often used their line of credit for short-term expenses, working capital, to make payroll, or for a business investment especially when business cash flow is temporarily down.
Get a free, no-obligation business line of credit quote by filling out our simple 2- minute business line of credit application here.
Remember: The time to set up a credit line is when you don’t need it.
