state of the business owner key findings webinar
DESCRIPTION
The State of the Business Owner 2012 is original research from over 800 owners of small and mid-sized companies on what success factors lead to revenue growth and profitability. UPDATE: download the 2013 version at www.stateoftheowner.com, and view the 2013 slide deck at http://www.slideshare.net/synotac/state-of-the-business-owner-2013-key-findings-webinar-soboTRANSCRIPT
State of the Business Owner 2012The Planner and the Pessimist
Key Findings WebinarJune 6, 2012
333 SW Fifth Avenue, Suite 350 | Portland, OR 97204 | 800-620-0307 | www.synotac.com © Synotac Design, LLC 2012
Presented by:Cameron Madill, President and Founder, Synotac
Jonathan Raymond, CEO, EMyth
Presenters
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Cameron Madill Jonathan Raymond
President, Synotac CEO, EMyth
Webinar Questions & Comments
Twitter Hashtag: #sobo2012
Webinar questions feature
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Origins and Motivation
What are the success factors helping small and midsize businesses
succeed in 2012?
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People who have just run a marathon sweat a lot
You are sweating a lot
Therefore, you have just run a marathon
Faulty Logic in Business
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My favorite business tactic is _____
The most successful company in the world today, Apple, uses this business tactic
Therefore, my favorite business tactic will help ANY company to grow and thrive
The Business Book Formula
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There is little good research on how small and midsize businesses thrive
We Are Not Fortune 500 Companies
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Boring & Important - Methodology● 802 business owners responded to a 55-question
survey in early 2012
● Respondents came from 47 different countries, with over 90% coming from six English-speaking countries: USA, Canada, UK, South Africa, Australia and NZ
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The Data at a Glance● The median age was 46 with respondents ranging from
20 to 90
● Combined revenues exceeded $600 million, with the average compensation of $104,000 and revenues of 1.4 million.
● The median growth rate was 13% with expected 2012 growth of 16%
● All currency figures converted to US dollars
● Only statistically significant findings are reported
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The Planner and The PessimistBusiness owners were starkly divided into two groups:
Planners Pessimists
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The PlannerPlanners believe they control their destiny and are busy navigating towards their vision for the future of their business.
Qualities of a Planner● Have a coherent vision of the future● Regularly track business metrics● Have concrete plans to move
towards their business vision● Are innovative with technology
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The PessimistPessimists believe the future is dictated by external events beyond their control that limit them from creating the life they want.
Qualities of a Pessimist● Do not have a vision for their
company in the future● Have few or no formal plans for
making progress towards this vision● Do not regularly consult metrics to
track business progress
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So Who Cares?Businesses that were owned by Planners:
Grew faster in 2011
Had higher annual revenues
Were more optimistic about 2012
The owners took home more compensation
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Which one are you?
Planners Pessimists
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The Way to a Business Owner's Heart
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Composite of responses to "What is your biggest opportunity in 2012?" and "What is your biggest challenge in 2012?"
What Helped Companies Grow in 2011?
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The Three Keys to the Growth Engine
Fundamentals Accelerators People
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The Three Keys to the Growth Engine
Fundamentals Accelerators People
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KEY #1 - FUNDAMENTALS
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KEY #1 FUNDAMENTALS
The Recipe for Success
We found that businesses that thrived in 2011 followed a simple formula:
Vision + Plans + Data = Success
KEY #1 - FUNDAMENTALS
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Vision + Plans + Data = Success
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KEY #1 - FUNDAMENTALS
Vision + Plans + Data = Success
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KEY #1 - FUNDAMENTALS
VisionOnly 42% of all businesses had a written description of what they want their business to look like in the future.
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KEY #1 - FUNDAMENTALS
Plans
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The greater the extent of revenue planning, the more successful businesses were in 2011 and the more optimistic they were about 2012
KEY #1 - FUNDAMENTALS
Bowling Blind
What would happen if you had to run your business without any feedback on the results you were achieving?
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KEY #1 - FUNDAMENTALS
Data65% track business metrics at least monthly
66% use their P&L and Balance Sheet to make decisions
43% quantify their lead generation efforts
39% monitor web traffic regularly
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KEY #1 - FUNDAMENTALS
DataBusinesses that tracked business metrics monthly were 80% larger and earned 60% more than their peers
Businesses that use financial statements to make decisions were 45% larger and earned 60% more than their peers
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KEY #1 - FUNDAMENTALS
What Will The Economy Do in 2012?
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KEY #1 - FUNDAMENTALS
Optimism and Planners
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KEY #1 - FUNDAMENTALS
Optimism and Experience
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KEY #1 - FUNDAMENTALS
The Three Keys to the Growth Engine
Fundamentals Accelerators People
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KEY #2 - ACCELERATORS
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KEY #2 ACCELERATORS
AcceleratorsOnce you have the fundamentals in place, there were two primary areas we found that could be used to accelerate your progress towards your vision:
● Technology● Marketing
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KEY #2 - ACCELERATORS
Technology and DisruptionWhen asked about the biggest trend affecting their business in the next three years, business owners consistently cited technology and the internet as drivers for change in their businesses, good and bad.
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KEY #2 - ACCELERATORS
Technology and Disruption
“Consumers becoming increasingly web based”- 33 year old male, Australia
“Technology making the world a smaller place”- 42 year old female, Professional Services, United States“
Disintermediation due to the internet”- 49 year old male, Professional Services, South Africa
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KEY #2 - ACCELERATORS
Optimism and Technology
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KEY #2 - ACCELERATORS
Before A Prospect Arrives41% of businesses monitor their reputation online by observing what their customers and employees are saying
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KEY #2 - ACCELERATORS
Impact of Your Reputation Online
80% - Negative information online has made me change my mind about purchasing a product or service
87% - Positive information online has reinforced my decision to purchase a product or serviceSource: MarketingPilgrim.com
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KEY #2 - ACCELERATORS
What's Your Real Homepage?
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KEY #2 - ACCELERATORS
Highly Effective MarketingAfter referrals, websites were the only type of marketing rated highly effective by more than half of the respondents.
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KEY #2 - ACCELERATORS
Hubs and Spokes
"Marketers are increasingly viewing their websites as the hub around which all their marketing efforts revolve, rather than just another spoke."MarketingSherpa
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KEY #2 - ACCELERATORS
The New Buying Process
77% of B2B buyers said they did not engage with a sales rep until after internal research was conducted, and 36% of buyers said they did not engage with a salesperson until after a preferred list of vendors was established.Source: DemandGen
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KEY #2 - ACCELERATORS
Educational Marketing
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KEY #2 - ACCELERATORS
Marketing and Planning
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KEY #2 - ACCELERATORS
The Target
Have you defined the key characteristics of your target market?
65% - Yes35% - No
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KEY #2 - ACCELERATORS
The Target
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KEY #2 - ACCELERATORS
Marketing and Planners
Do you have a marketing plan that you revisit at least quarterly to evaluate results?
35% - Yes65% - No
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KEY #2 - ACCELERATORS
Marketing and Planners
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KEY #2 - ACCELERATORS
Digital AnalyticsBusinesses that monitor their lead generation and website analytics outperformed those that did not:
● They Grew 20% faster in 2011● They Are twice as optimistic about 2012● They Generated 30% more revenue overall● They Took home 20% more compensation
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KEY #2 - ACCELERATORS
The Three Keys to the Growth Engine
Fundamentals Accelerators People
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KEY #3 - PEOPLE
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KEY #3 PEOPLE
PeopleThere were two major groups inside of your business that determined success:
● Your Employees● YOU (business owners)
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KEY #3 - PEOPLE
Labor Mobility
Standard "quit" rate in any year: 25%In 2010: 16%Source: U.S. Bureau of Labor Statistics
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KEY #3 - PEOPLE
Employee EngagementEngaged - work with passion and feel a profound connection to their company
Not Engaged - essentially “checked out” and sleepwalking through their workday
Actively Disengaged - acting out their unhappiness and undermining the mission of the companySource: Gallup
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KEY #3 - PEOPLE
November 2011 Gallup Q12 Results
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KEY #3 - PEOPLE
How do you Retain Star Employees?“Honesty, fair treatment, fair compensation, clear communication.”- 50 year old female, United States
“Mentoring, flex work schedule, encouraging ongoing education.”- 36 year old male, Technology Services, United States
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KEY #3 - PEOPLE
How do you Retain Top Employees?Recognition
Professional Growth Opportunities
Clear Expectations
Trust and Autonomy
Fair Compensation
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KEY #3 - PEOPLE
So What Are You Doing About It?
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KEY #3 - PEOPLE
Results-oriented Role DescriptionsOnly 30% of all businesses had results-oriented role descriptions for all of their employees.
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KEY #3 - PEOPLE
Vacation and Ownership
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KEY #3 - PEOPLE
Business OwnersWe could find no relationship between growth rates and amount of vacation by the business owner.
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KEY #3 - PEOPLE
Gender and Business Ownership
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KEY #3 - PEOPLE
There were substantial differences in compensation and business size between male and female business owners.
The Partner FactorBusiness owners with a partner outperformed those without a partner in every area we measured.
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KEY #3 - PEOPLE
The Business Model MattersBusiness owners who had a relationship-driven model took home substantially more compensation than transactional companies.
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KEY #3 - PEOPLE
Which one are you?
Planners Pessimists
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State of the Business Owner 2012For additional research, guides and community:
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Facebook.com/StateOfTheOwner
@StateOfTheOwner
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