Everyone wants financial freedom. Many people take the path of an entrepreneur and open their own businesses to achieve this. However, among the many business start-ups out there, only a few grow or survive.
Four stages for business growth and expansion:
There are four identified stages of business development that are critical for growth and expansion.
First is stability.
The foundations of a business are anchored on the entrepreneur’s mastery and consistency of his/her purpose.
Second is cash flow.
This is about finding the niche and building a system of controls for the business.
Third is time.
An entrepreneur builds his dream to “retrieve” his time. He establishes the vision and direction of the business while the team implements the mission and operations.
Fourth is prosperity.
Entrepreneurship is enriching the self while enriching others.
The FREEDOM Framework
To further understand these four stages, a group of mentors developed an integrated framework to help: an aspiring entrepreneur to start a business; or, an existing entrepreneur to transform the business to operate even without him. The mentors created the Entrepreneur’s Toolbox for Financial Freedom or the F-R-E-E-D-O-M Framework.
Foundation is the period of mastery of business fundamentals in order to eliminate the chaos and create internal stability. This first stage of growing is to make sure we gain profitability, productivity and enough quality information to make good decisions.
REASON FOR BEING.
Know the “big why” for being in business will propel an entrepreneur to thrive and sustain growth. The reason for being will entail self-mastery and goal mastery.
ER FACTOR.
A clear niche in the market will enable a business to have stable cash flow. Stable cash flow is the next major phase in the life of a company. The “ER” factor refers to creating a niche, by being better, faster and other “ERs” than the competition in terms of products and services. The ER factor should also be applied in terms of generating profits, i.e. better conversion rate, higher average orders, more transactions, more leads and higher margins.
In terms of priorities, most people start with leads generation but this is actually the most expensive way. Unless there are enough, leads should be the last area of focus.
EMPOWER.
Now, it is time to lift the business to the next level and empower the organization for more growth. This is achieved by creating the right systems in place to handle the extra-work. There are four areas to empower: 1) Structure; 2) Process; 3) Management; and, 4) Technology.
DREAM TEAM.
When a business is profitable, has great cash flow and operates with standard procedures, the next step is to build a solid team. This is the time where the business owner can free up his time and the business will operate even without him.
The role of as an entrepreneur transcends to supporting the team. The team supports the customers. The customer supports the business and of course the business supports the entrepreneur in full-cycle.
As an entrepreneur, the key attention is in selection and recruitment as well as the induction of new team members to the vision, mission and core values of the company. The focus is ensuring that the six keys of a solid team are present:
- Strong leadership
- Vision and clear key performance indicators
- Shared value and clear standard operating procedure
- Action plan
- Support risk-taking
- 100 percent involvement and responsibility
OPEN FLOOD GATES.
Now that the business machine is well functioning, expect the business to scale up fast. As it expands, expect some cracks and problems to arise. The entrepreneur will need to keep an eye on this and plan for the future with a view of the present.
As the business prospers, this is also a time for the entrepreneur to leave his legacy and contribution. Start corporate social responsibility programs and understand personal financial stewardship to God.
MULTIPLY.
At this stage, with the good cash flow, great systems and a solid team, the entrepreneur is now in a position to multiply the business through:
- Expanding in other areas;
- Franchising; or,
- Selling the business at a premium and cashing out to buy a bigger business.
The Mentors of Lead More
With the desire to become an instrument of change for others, the Business Mentor was invited to this group called Lead More. It is an organization of mentors who design, develop and deliver entrepreneurship frameworks with the purpose of prospering entrepreneurs and professionals on the way to mastery of their craft.
Lead More was born from six mentors’ shared passion to teach.
In the Philippines, Jojo Apolo is the only certified master practitioner and trainer in the field of Neuro Linguistic Programming (NLP) by both USA and UK academies.
An Asian Institute of Management (AIM) alumnus, he is an author and business turnaround mentor who specializes in sales and market development, business strategy and systems and personal and organizational development.
Known to many as the Franchise Guru, this author has over 28 years of experience in franchise consulting. I mentor aspiring and existing entrepreneurs on franchising; business planning, development and expansion; and family business succession. I am also a columnist and 2012 Book of the Year Author.
AIM alumnus Carlo Calimon is a serial entrepreneur and recognized digital game-changer. Acclaimed for his work in digital innovation, he is a business mentor who specializes in digital marketing, product development and innovation and entrepreneurial mindset.
Author of the nationwide bestselling books, Dean Pax Lapid is one of the respected entrepreneurship mentors in the country. Aside from being a best-selling author, he is an Asian Institute of Management (AIM) professor and business consultant.
He specializes in strategic management, business development, enterprise creation and growth, financial wellness and family corporation growth.
A mentor in entrepreneurial finance, Marites Dimaculangan is a certified public accountant. Also an AIM alumna, she mentors and specializes in financial literacy and analysis, personal finance, accounting and taxation.
Life coach, toastmaster and author, Raju Mandhyan has 15 yeas of experience as a learning facilitator in communication skills, entrepreneurial leadership and personal and organizational development.
He serves as a mentor on innovation and entrepreneurship, leadership & strategy and sales and communication.
With the heart to share, they are active mentors in the Philippine Center for Entrepreneurship–Go Negosyo and/or the Truly Rich Club. Their purpose is to mentor more, for them to also lead more and give more in their lives.
As respective experts in their field, this group created the FREEDOM Framework. It is a toolbox that will lead an entrepreneur towards prosperity in business and family through applied knowledge. It will enable an entrepreneur to have more free time for a balanced work-life-family lifestyle and to give back to society.
Do you have financial freedom? – #JHedzWorlD
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