Taking Your Business to the Gym: Getting Your Business Vision

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The importance of your Business Vision

In order to build a business that will growth rapidly and sustainably you must first get "that Vision thing."  George Bush Snr most notably suffered from his lack of what he called ‘the vision thing,’ a clarity of ideas and principles that could explain his philosophy. Without a solid and well thought out vision your chances of it acting as the beacon of your company’s aspirations and intentions will be short lived.

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Understanding and developing your Business Vision

For most people realising what their vision is and then putting it into words is a daunting task. I don’t think it helps when you hear examples of the visions for well known companies like Disney which is “to make people happy”. Many people I speak to are put off by the prospect of matching such examples. Don’t be put off, we can’t all be Disney.

Your vision is about your values. You could see your vision as how the future will change as a consequence of your actions. It is vital that you understand that your vision must have permanence and should not change over time.  A good way of developing your vision is to describe it in a few words for example you might descri
be it with words like, ethical, profitable, fun, focused, detailed, customer centric, national, regional, global, local, quality, price-conscious and so on.

Resisting pressure to change

Inevitably at some point either you or more likely your employees or customers with put pressure on you to change your vision as it won’t suit them. This is the first test of its strength and your commitment. Your vision was set out because it reflects your personal aspirations about what your company should be. If you compromise then either you don’t really have a vision and your company is just a surrogate for a paid job, or more likely you lack confidence in your own view. Don’t weaken, by following your vision it will help you quickly decide which business opportunities are right for you and which not.

What a strong Vision gives you

Your vision determines your employees approach to business and it gives them a structure around which to work, it is the unifying force that turns individuals into a team. It also ensures that any new employee understands what is expected from him. It provides the underpinning of your company culture. It tells you customers what to expect from you. Your vision gives you above all consistency. Consistency is the mark of any successful business as both your staff and customers will know what to expect and know that they will receive it.

Inconsistency is the scourge of too many businesses and is often an indication of an absence of a vision or weak management unable to implant their vision on their employees.

Getting “the vision thing” right is absolutely fundamental to the development of a successful business, so take time to put your in place. 

Leave a comment and let me know what you think.

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Exigent Consulting specialises in providing Business Turnaround, Sales, Marketing and Mentoring to the Small and Medium Business. We help Business Owners improve the profit performance of their business.

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To Groupon or Not To Groupon That Is The Question

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Groupon has been, and indeed still is, a business phenomenon. Its growth across the US has been explosive. It is now growing rapidly in the UK. Its message is to use the power of groups to get big discounts purchases of goods and services. In reality it is a careful repackaging of the discount  Coupon.  

For those of you who may be unfamiliar with the this company Groupon's business model is "group coupons": If enough people sign up, the deal "tips" into action (because Groupon is so large, and has so many followers almost all deals now tip).  Groupon now has more than 50 million subscribers and aims for 150 million by year-end. Its revenues—about half the value of total transactions—were an estimated $760 million last year and should hit $2 billion or more this year. In addition there are a growing number of "Groupon" like competitors springing up. The market for this type of promotion, currently at least, is huge.

Many companies have benefited from Groupon style promotions but it does present longer term issues for business and particularly smaller businesses mainly because it is purely a price based promotion. Typically Groupon will want you to provide a 50% discount on normal price as a promotion. Groupon will then take 50% of that discounted figure. So a £10 meal nets the merchant £2.50.  The objective is of course to encourage the Groupon diners to come back for a full price deal. The evidence for this is however patchy. A recent study indicates a growing number of "Groupon Customers" who only frequent establishments featuring Groupon deals and will only spend the minimum required. Still with those businesses with high fixed costs such as Restaurants and Spa's, getting additional customers in on slow days in the hope of converting them to full paying customers is relatively low cost marketing approach.

The longer term issue as I indicated earlier is that it is purely a price based promotion which will lead to a reduction in brand loyalty as customers recognise that they can return as new on the Groupon discount.  Leading to a steady fall in the number of true new customers, matched by an increase in the number existing full price customers converting to Groupon customers to obtain the deep discounts.

Evidence is appearing that Groupon is excellent as a tactical marketing ploy, but increasing repetition could have a significant negative impact on a businesses longer term profitability. 

For the smaller business a very careful analysis of the true cost of using a Groupon style promotion needs to be undertaken as getting it wrong could prove very damaging for your business

Related articles

• Does Groupon Erode Price And Is Groupon Right For Your Small Business? (toddstechtalk.wordpress.com)
• Groupon Down 30% (coverboom.com)
• Is Groupon a tool for price discrimination (iterativepath.wordpress.com)
• Why Groupon May Not Make Strategic Sense for Your Business (socialmediaexplorer.com)

Exigent Consulting specialises in providing Business Turnaround, Sales, Marketing and Mentoring to the Small and Medium Business. We help Business Owners improve the profit performance of their business.