What type of business are you really in?
What is ‘Profit Per X’ (and Why is it Powerful?)
Here’s a deceptively simple question. What type of business are you really in? Do you know where your profit comes from? Transactions? Memberships? Events? Sometimes the answer isn’t as obvious as it seems.
Take the example of Sat Singh, the owner of Autopia car wash. His lightbulb moment came when he realised the true value of customers who paid for his car wash memberships. Up until this point, he’d seen them as an inconvenience. They took up more admin time to update credit card details than his single-transaction customers.
But when he crunched the numbers in his business, he realised these customers were ten times more valuable. That’s massive! Once he realised this, he re-modelled his company to focus on memberships, making customer satisfaction and member benefits central to his strategy. Profit per membership card became his new profit per x – the one metric that drove his company’s growth. (Thanks to Doug Wicks, fellow Scaling Up coach for sharing this story).
Profit per x has the power to be transformational. It’s about communicating clearly to your organisation how you make money. And if this solves a constraint in your industry, it can become the secret sauce that will pull you away from your competition.
Measuring Employee Happiness In 2020 And Beyond with Nic Marks
If you’re wondering how your team’s happiness is, or how you can support employee wellbeing and sustain team morale, then you don’t want to miss Nic Marks, CEO and Founder of Friday Pulse, Dom’s employee engagement, employee happiness, employee measurement tool of choice.
“When I ask how engaged you are, people don’t know. You know, it’s like, if you ask people, how meaningful is your work? It sounds great. But people don’t know what the top of that scale is. Do they have to be Mother Teresa? Do they have to be Nelson Mandela?”
Nic’s been on the show before and in that episode, he talked about the work he did previously, and the TED Talk he’s done. But today, we’re digging into a chart that Nic and his team have put together, which looks at the weekly employee experience for 2019-2020. It’s as clear as day to see how it fell off a cliff in March. So we talk about that and we also talk about why it’s come back up. Where are we now? What are the thoughts and hopes for 2021?
“The evidence suggests that Homo Sapiens defeated Neanderthals because they out-teamed them. And I think if you bring human beings together, physically together, you get a team that you just don’t get, when you’re on Zoom.”
As usual we discuss book recommendations, and Nic shares fond memories that he has for Tony Hsieh, the founder of Zappos, who passed away recently. This is another great chat with Nic, we hope you enjoy it as much as we did.
News From The Farm
Ham-some New Arrivals!
Introducing our three newest additions to Foundry Farm, Dolly, Daisy and Violet. A cross between Saddleback and British Lop, the girls are now 12 weeks old and are settling in nicely.
SocialZoomFactor is a podcast created for you, the business and marketing leader in startups to enterprise organizations. If you want to learn how to integrate social media, content marketing, experiential branding, digital marketing and the latest technology to zoom results in business and life you won’t be disappointed in the energy and information Pam Moore delivers 5 days a week. Each episode brings you actionable tactics and strategies you can implement today for real business results. Pam is CEO / founder Marketing Nutz and ranked as Top 10 Social Media Power Influencer by Forbes.
A few days ago a varied group of people was gathered in a London office. Drawn from a range of businesses in different sectors, they nevertheless had a commonality. In the words of Traci Fenton, founder and chief executive of the global certification company WorldBlu, the link was “psychographic, not demographic”. All shared a mindset that business needs to be less about fear and command and control and more about transparency and accountability.
Gustavo Razzetti, who gets hired by companies to improve their work cultures, has noticed a change since the pandemic began last year: more political brawls, more managers losing control of their employees, a curious mix of hyper-engagement and lack of empathy.
After nearly a year-long experiment in telecommuting, 95% of remote workers say they’d rather be back in the office in some capacity. Only 19% say they’re completely satisfied with their current work from home arrangements. More than half want to cap their remote work time to one or two days a week.
Imagine you’re one of 75,000 people working in a huge company, and the CEO wants to talk to you, one-on-one, to get to know and understand you. That’s what Monty Moran did 20,000 times as he built the extraordinary culture that took Chipotle Mexican Grill from a regional burrito chain to a Fortune 500 superstar. In Love Is Free, Guac Is Extra, Monty shows how he used curiosity, vulnerability, love, and a unique understanding of the true meaning of empowerment to build a distinctive and wildly effective culture. From his teenage days befriending homeless people at a Colorado Dairy Queen to his nuanced navigation of a complex co-CEO relationship, Monty demonstrates a relentless humility and desire to understand the person across from him. This is not your average leadership book. This is a book about business leadership executed in a way you’ve never encountered before, by becoming the best version of yourself.
If you’re relying on willpower alone to help you lose weight, improve your relationships or achieve more at work, you’re doomed to fail. The environment around us is far too powerful, stimulating, addicting and stressful to overcome it through sheer determination. Willpower, grit, being positive – basically, all the tools you’ve been told are the keys to creating lasting change in your life – are insufficient in this high-paced, information-overloaded world we live in. The only way to stop just surviving and learn to truly thrive in today’s world is to proactively shape your environment. That’s the premise of Willpower Doesn’t Work, by organizational psychologist and Medium’s most-read self-help guru Benjamin Hardy. Building on copious existing research, as well as his own experience of growing up in a broken family afflicted by addiction and drug use, Hardy explains how people can change their lives on every level by making small, impactful changes in their environment.
MEANINGFUL ACTION FOR MONDAY
Decide your most important metric for 2021
I was with clients last week who have failed to get to where they wanted last year. We explored why and what they’re going to do differently in 2021. They’ve made plenty of progress but are yet to crack new customer acquisition. This number needs to be their laser-focus for the next 12 months. And it needs to be one number. The word priority used to be singular. It’s only relatively recently that it’s become plural. Decide on the single, most important metric for your business this year. At Rackspace and Peer 1, we focused on changes in monthly recurring revenue. Every day an email alert arrived to tell us the changes the day before. It was the only thing we cared about – it drove everything. And that clarity drove our stratospheric growth.
To celebrate the release of BE 2.0 (Beyond Entrepreneurship 2.0), Jim Collins, best-selling author and globally revered leadership thinker will return to The Growth Faculty stage to present this powerful live virtual event. CEOs, business leaders and their teams will be among the first of the global business community to hear new insights from his latest book and be equipped with Jim’s highly anticipated framework, “The Map”.
Join top Scaling Up partners from around the globe for Verne’s first Summit of the year. These leading CEOs and authors will share actionable insight focused on your people and culture to ensure a prosperous 2021. 3 keynotes in 90 minutes. 2.24pm ET – 4.04pm ET.
When the going gets tough, attitude trumps everything. Don’t let COVID-19 beat you into the ground and take your business. Treat this pandemic as an accelerator. The “one thing” you’ve been looking for to pivot, re-evaluate or simply get shit done. Join us on our farm in Wiltshire to walk through our Scaling Up growth programme.
Quote of the week
“I’m not in the car-wash business, I’m in the membership business!”Sat Singh, Autopia Car Wash
Dominic offers business coaching and management development, strategy planning and organisational change, using tried and tested methods to launch your organisation onto an unparalleled growth trajectory. His programme is a function of his broad experience, his deep expertise and a proven process used by over 2,700 firms worldwide.