Roland Frasier Pt.2 First Principles Reasoning, Inversion Thinking & Selling The Eggs Not The Goose

‘Not only are they profit centres they are cross-selling opportunities' 

In the second part of this 2-part series, Gavin and Roland continue to explore how to scale and grow businesses. They discuss in detail with pertinent examples of how to identify the areas for change and the strategies and questions to ask to enable transformation. Listen in to hear how you can make effective changes in your business and convert your cost centres into profit centres. 

  

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KEY TAKEAWAYS 

The 1kx matrix identifies valuation, revenue and profits as areas that should be carefully reviewed. The process begins by looking at revenue and the sources (see the previous episode) followed by the profits and valuation.  Profits 

E2P for profit involves looking at your biggest cost centres and asking – how can I convert these into profit centres? Your stock could be wholesale to someone else and identifying how you can convert your cost centres into profit centres is key. 

How can people following the E2P strategy avoid it being a distraction? 

You have to have a champion; you have to make it a subsidiary business of the core business with a dedicated general manager who is its champion. 

Valuation 

People should look at monthly recurring revenue, If you have monthly recurring revenue then the risk of you having to go out and find new customers is much less increasing the valuation. Ask the question – How can we turn static income into monthly recurring revenue (MRR) or (ARR) annual recurring revenue. 

First principles reasoning, tell me about that? 

‘We need to take all of our assumptions about something and re-examine them from the ground up' It's about going back to the core.   

Inversion thinking is about looking at all the things we don't want to happen so we can be sure we don't get to that place. 

The combination of the first principles thinking and the inversion thinking brings a complete approach to any situation or challenge. 

‘Sell the eggs and keep the geese' 

If you can sell profit centres that don't sacrifice your momentum you can have an unlimited amount of exits because you have an exit building machine, you figurately have a goose that is laying golden eggs, so why lose the momentum have multiple companies and continue to move forward successfully. 

 

BEST MOMENTS 

‘Looking at one time sales and focusing on how to make them into recurring revenue increases the valuation' 

‘If they can do it with those completely non-recurring  type businesses then you can do it for your business' 

‘Not only are they profit centres they are cross-selling opportunities' 

‘Your inventory could be wholesale to someone else' 

  

VALUABLE RESOURCES 

The Business Mastermind Podcast 
https://www.rolandfrasier.com/ 
Roland Frasier LinkedIn 
Business Lunch Podcast   
War Room Mastermind 
Digital Marketer 
Traffic and Conversion 
Summit 

  

ABOUT THE HOST 

Gavin Preston 

Gavin is an inspirational Speaker, Business Strategist, Business Growth Mentor, Trainer and high-performance Coach. He works with Business Owners and Entrepreneurs and has a strong track record in creating creative strategies to accelerate the growth of their business. He has helped hundreds of SME business owners and leaders improve their performance and that of their business and a comparable number of executives and employees in blue-chip corporates over the last 20 years. 

Gavin's energetic, insightful and yet down to earth and practical talks, workshops and coaching is in demand with high growth business between £250,000 and £30 million revenue and with multi-national organisations at all levels from Board to frontline 

Managers. He is an expert in Business Growth Strategies, Peak Performance Mindset, Persuasion & Engagement, Marketing, Productivity, Leadership Development, Team 

Development & Motivation, Leading Change, Stakeholder Management, Personal Effectiveness and Behavioural Change. 

  

CONTACT METHOD 

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