8 Figure Formula Workbook WORKBOOK

Transcription

1 8 Figure Formula Workbook WORKBOOK

2 Table of Contents 1. Introduction Setting Your Overall Goals Establishing Your Asset Goals Establishing Your Metric Goals Setting Your Strategy Building Systems Multiplier Tactics Creating Your Execution Plan & Dashboard Figure Formula Workbook

3 1. Introduction Welcome to the 8 Figure Formula Workbook. This workbook should be completed alongside the 8 Figure Formula video modules. The videos take you through various lessons that will give you the knowledge and guidance to complete the exercises herein. Congratulations on taking this key step in dramatically growing your business and improving your success! 8 Figure Formula Workbook Page 1

4 2. Setting Your Overall Goals 1. Exit Goal (ignore if you plan to never exit) We will sell our company for $ on. Our annual run rate at exit will be $ in revenues and $ in net profit Year Goal (ignore if you plan on exiting within 5 years) In (year five years from now), we will generate $ in revenues and $ in net profit Year Goal In (year), we will generate $ in revenues and $ in net profit. 4. Next Quarter Goal In (quarter, year), we will generate $ in revenues and $ in net profit. 5. Next Month Goal In (month, year), we will generate $ in revenues and $ in net profit. 8 Figure Formula Workbook Page 2

5 3. Establishing Your Asset Goals 1. Customers/Marquee Customers Is this asset currently relevant to your business? o If no, could this asset be relevant to your business? o If so, how? How much value can this asset have to your business? How might you build this asset? What are your goals for building this asset? o Quarterly goal o Annual goal 2. Products Is this asset currently relevant to your business? o If no, could this asset be relevant to your business? o If so, how? How much value can this asset have to your business? How might you build this asset? What are your goals for building this asset? o Quarterly goal o Annual goal 8 Figure Formula Workbook Page 3

6 3. Services Is this asset currently relevant to your business? o If no, could this asset be relevant to your business? o If so, how? How much value can this asset have to your business? How might you build this asset? What are your goals for building this asset? o Quarterly goal o Annual goal 4. Technology/Intellectual Property Is this asset currently relevant to your business? o If no, could this asset be relevant to your business? o If so, how? How much value can this asset have to your business? How might you build this asset? What are your goals for building this asset? o Quarterly goal o Annual goal 8 Figure Formula Workbook Page 4

7 5. Distribution Network Is this asset currently relevant to your business? o If no, could this asset be relevant to your business? o If so, how? How much value can this asset have to your business? How might you build this asset? What potential distributors could you get? What are your goals for building this asset? o Quarterly goal o Annual goal 6. Location(s) Is this asset currently relevant to your business? o If no, could this asset be relevant to your business? o If so, how? How much value can this asset have to your business? How might you build this asset? What potential locations could you get? _ What are your goals for building this asset? o Quarterly goal o Annual goal 8 Figure Formula Workbook Page 5

8 7. Reputation/Brand Is this asset currently relevant to your business? o If no, could this asset be relevant to your business? o If so, how? How much value can this asset have to your business? How might you build this asset? What are your goals for building this asset? o Quarterly goal o Annual goal 8. Team/Employees Is this asset currently relevant to your business? YES How much value can this asset have to your business? A LOT How might you build this asset? What are your goals for building this asset? o Quarterly goal o Annual goal 8 Figure Formula Workbook Page 6

9 9. Financial Savings Is this asset currently relevant to your business? o If no, could this asset be relevant to your business? o If so, how? How much value can this asset have to your business? How might you build this asset? What are your goals for building this asset? o Quarterly goal o Annual goal 10. Systems/Processes Covered in more detail in Module Strategic Partnerships Is this asset currently relevant to your business? o If no, could this asset be relevant to your business? o If so, how? How much value can this asset have to your business? How might you build this asset? What potential strategic partners could you get? What are your goals for building this asset? o Quarterly goal o Annual goal 8 Figure Formula Workbook Page 7

10 12. Plants, Operating Equipment Is this asset currently relevant to your business? o If no, could this asset be relevant to your business? o If so, how? How much value can this asset have to your business? How might you build this asset? What are your goals for building this asset? o Quarterly goal o Annual goal 13. Vehicles, Furniture, Real Estate Is this asset currently relevant to your business? o If no, could this asset be relevant to your business? o If so, how? How much value can this asset have to your business? How might you build this asset? What are your goals for building this asset? o Quarterly goal o Annual goal (Note, raw materials, inventory and cash are all included in the video modules and are all real assets, but do not require in depth planning/goal setting.) 8 Figure Formula Workbook Page 8

11 4. Establishing Your Metric Goals A. Long-Term Metrics 1. Sales/Revenues ($) What are your long-term goals for this metric? 2. Net Income What are your long-term goals for this metric? 3. Customer Base What are your long-term goals for this metric? B. Short-Term Metrics The following chart and exercise will help you determine which metrics or Key Performance Indicators (KPIs) you need to measure and track in your business. In summary, any KPI that will help you manage or improve your business should be measured. Add KPIs by answering this question: Imagine there are 5 direct competitors in your business, and that you were given a blank check and the ability to buy any of these companies. And, as a result, each of these companies opened up their books to you? What key metrics would you look at for each company in determining which to buy/which would offer the greatest value? (Each of these metrics should be included). 8 Figure Formula Workbook Page 9

12 Metric Measure? (Y/N) Monthly Goal Quarterly Goal Annual Goal Topline Metrics Sales/Revenues ($) Net Income Customer Base # new customers # customers dropped Marketing Metrics # Leads # Press Mentions # s Sent # Website Visitors # Website Conversions # Facebook Fans # Twitter Followers Sales Metrics # Proposals # Sales # Upsells $ Upsells Operations Metrics # of products manufactured # of service contracts fulfilled # of defective products/services % late service or late delivery 8 Figure Formula Workbook Page 10

13 Metric Measure? (Y/N) Monthly Goal Quarterly Goal Annual Goal Customer Satisfaction Metrics # of customer returns # of customer complaints received # customer problems resolved within 24 hours HR Metrics New employee hires Employees left 8 Figure Formula Workbook Page 11

14 C. Health Metrics Indicated on the following chart which health metrics you need to measure and track in your business. Metric Financial Metrics Payroll as % of Sales Cost of Goods Sold as % of Sales Marketing costs as % of Sales Operating costs as % of Sales Cash Measure? (Y/N) Financial Health Ratios/Metrics Current ratio Quick ratio Cash ratio Debt ratio Inventory Turnover ratio Receivables Turnover ratio Financial ratios defined: Current ratio = Current assets / Current liabilities Quick ratio = (Current assets inventory) / Current liabilities Cash ratio = Cash / current liabilities Debt ratio = (Total assets total equity) / Total assets) Inventory Turnover ratio = Cost of goods sold / Inventory Receivables Turnover ratio = Sales / Accounts receivable 8 Figure Formula Workbook Page 12

15 5. Setting Your Strategy Your strategy is essentially the asset and metric goals you have already set. In Module 7 (Execution Plan), you will transition these goals into an Action Plan. For now, let s improve the two biggest potential strategic flaws. 1. Lack Customer Residuals How can you change your product or service offering to get residuals? o How can you change your product or service offering to get recurring or contractually recurring revenues? o How can you change your product or service offering to increase switching cost? How can you diversify your customer base and/or get better customers? Write down your answers below, and then include these strategies in Module 3 under the assets (products or services) you need to build. 2. Lack of Resources If you lack human resources? o Who do you need to hire to give you the human resources you need? Write down your answer below, and then include it in Module 3 under the asset Team/Employees. 8 Figure Formula Workbook Page 13

16 If you lack financial resources? o Consider bank loans, angel investors, and/or creative financing (particularly vendor or customer financing). If applicable, write down below which types of financing you will seek. 8 Figure Formula Workbook Page 14

17 6. Building Systems 1. Determining Systems You Must Build in Your Business Build systems for any process that occurs in your business, that is performed frequently, and, that if completed in a predicable, consistent manner, would increase the value and profits of your business. Write down all the systems you need to create in your business: 8 Figure Formula Workbook Page 15

18 2. Process for Creating Systems Follow the following process for creating systems: 1. Assign person in your organization who will lead the development of the system 2. Identify where the system starts and the ideal outcome of the system 3. Create the system Process Map 4. Create Standard Operating Procedures (SOPs) For Specific Function within the system 5. Create Policies & Guidelines to Follow 3. Establish Systems to Manage your Systems 1. Purchase a binder in which you will include printouts of all the systems and SOPs you create. 2. Keep a running list of problems you incur, and then create guidelines and systems that will avoid them in the future. 3. Set up a project management system. Consider using Basecamp as your task management/project management system. 8 Figure Formula Workbook Page 16

19 7. Multiplier Tactics Take notes below on the 12 multiplier tactics and circle the ones you will employ. Productivity & Leadership Tactics 1. Constantly set goals and work in time chunks 2. Have TEAM Goal Setting 8 Figure Formula Workbook Page 17

20 3. Delegate More Effectively 4. Identify What You Don t Know (And Then Get It) 5. Don t Interrupt Your Goals 8 Figure Formula Workbook Page 18

21 6. Repeat What s Working 7. Hang Out With Winners 8 Figure Formula Workbook Page 19

22 Marketing & Sales Tactics 8. Really Know Your Customers 9. Use The 80/20 Rule On Your Customers 10. Position Your Offer With Information Marketing 8 Figure Formula Workbook Page 20

23 11. Use Upsells 12. Use Multiple Marketing Methods 8 Figure Formula Workbook Page 21

24 8. Creating Your Execution Plan & Dashboard Watch the video and complete the Excel dashboard. Dashboard sections: 1. Overall Goals 2. Asset Goals 3. Metric Goals 4. Metric Charts 5. Big Picture Gantt Chart 6. Gantt Charts - Individual Projects 8 Figure Formula Workbook Page 22