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  • Growth Cliffs Explained: Why Your Business Needs to Adapt to Keep Growing

    Principle: Growth Cliffs What got you here likely won’t likely get you there. Let us help you navigate growth cliffs. In simple terms, managing a $2 million business is vastly different from managing one at $80 million. "Growth Cliffs" occur when the strategies that once spurred growth, no longer work, causing growth to slow down. These cliffs are driven by market demand and your ability to supply. Any business’s ability to grow constantly is driven by two main factors: market demand and resource capacity to supply. Notwithstanding there is demand for what you are selling, if you don’t adjust your resource capacity to supply efficiently and effectively, your business will experience diminishing returns on the resources it allocates. In other words, the structure that supports $8m in annual revenue won't suffice to reach $100m. At Point16, we've identified three distinct growth cliffs between $1 million and $100 million. These cliffs are evident at specific revenue points: $1-2 million, $8-10 million, $20-24 million, $50 million, and around $100 million, regardless of the business's age or industry. A common example involves businesses earning $8-10 million annually that rely heavily on one or two key individuals. While these individuals were invaluable during growth from $4-$9 million, they can become bottlenecks at $10-15 million. It's essential to delegate responsibilities to teams or implement systems to unlock further growth. If maintaining your current approach makes it harder to achieve the same level of revenue growth, you might have hit a growth cliff. At Point16, we help businesses recognise and navigate these cliffs, ensuring sustained growth and success.

  • Unveiling Point16’s Game-Changing Business Principles

    At Point16, we’re breaking down the barriers to business brilliance with our unique principles that redefine the game. Today we’re sharing two of our principles that drive our mindset and approach to business. Principle: Business is Simple In a world inundated with buzzwords and complexities, it’s easy to lose sight of what truly matters in business. At Point16, we're here to remind you that sustainable business growth doesn't have to be complicated. Strip away the jargon and distractions - focus on the essentials: 1. Create or acquire a product or service. Whether you're manufacturing goods or offering a service, ensure that you're offering meets a genuine need in the market. Invest time and resources into delivering a product that customers want. 2. Market / sell your product or service. Marketing is the bridge that connects your product to your customers. B2B (business to business) or D2C (direct to consumer), ATL (above the line), BTL (below the line), subscriptions, perceived values, brand equity… there's a lot of jargon, it doesn't matter. Know your customers and communicate with them. 3. Make a profit. How? Receive more money than you pay. This means selling a product or service based on where a customer perceives value. Revenue, EBIT, gross profit margins, overhead optimisation, balance sheets, market cap, gear ratios... this is all noise. And that's it. Business is simple. Don't complicate it, especially at the start of your business journey. There will be enough intricacies the further into entrepreneurialism and the more specialised your business gets. Have a product or service that customers know about, want and are willing to pay for, at a price that exceeds your cost. Use this principle as a way to view your business through a simplistic lens. If your business is not experiencing the results you are expecting, the problem (and therefore solution) lies within one of those three key areas. Principle: Know Your Business Understanding your business inside out is where the magic happens. It's about diagnosing what you're good at, what you're better at, and what you're best at across your product, customers, and profit/loss. No business is a superhero at everything, by pinpointing your strengths and weaknesses, you can focus your efforts on what truly matters for growth. Here's the kicker: knowing your business isn't just about awareness; it's about action. It's like building a house - you wouldn't just use a hammer for everything, right? You need the right tools for the right part of the job. Similarly, in business, you need to match your strategies to your strengths and weaknesses. So, how do you know which tools to wield? Simple. Once you identify the areas you want to target, it's all about finding the perfect tool for the task at hand. And let's not forget, synergy is key. When your tools align perfectly with your goals the results speak for themselves. Knowing your business isn't just a nice to have - it's a game changer. It's the difference between stumbling in the dark and having a road map to success. By understanding your strengths and weaknesses, you can make smart decisions that propel your business forward. In the end business may seem complex, but strip away the fluff, and it's all about having a great product or service, attracting customers, and turning a profit. With our principles as your guide, you'll have the clarity and confidence to navigate the twists and turns of entrepreneurship. Remember, our principles aren't rulebooks – they’re perspectives. How you choose to apply them is up to you. But we are here to help you unlock your business brilliance every step of the way. So, are you ready to unlock your business brilliance?

  • Point16 - The origins of our name

    Ever wondered about the origin of the name Point16? It’s more than just a catchy title – it’s the juncture where businesses grow from incremental to exponential growth. Think of it as the tipping point, that pivotal moment where ideas, trends or behaviours ignite and spread like wildfire. Inspired by Malcolm Gladwell’s game changing book “The Tipping Point,” our name pays homage to this transformative concept. Our roots delve even deeper, tracing back to Everett Roger’s seminal work “Diffusion of Innovations” in 1962. Here, Point16 finds its foundation – a beacon guiding businesses through the labyrinth of growth. This is everything we’re about at Point16. Growth. Growth of an idea, growth in revenue or profitability, growing capabilities and helping businesses leverage what they’re great at. We are the ignition in understanding the Tipping Point for the businesses that we work with. But why “16”? This was inspired by insights from the Adoption Curve, a roadmap to understanding how people embrace new technology. This concept burst into the mainstream vernacular during tech start-up popularity. Imagine the adoption curve as a five-stage journey from tech infancy to widespread embrace. First up, we have the innovators – the daring 2.5% who live for the thrill of trying something new. Then come the early adopters, the trendsetting 13.5% who catch the wave before it hits the mainstream. Moving along, we meet the early majority, the cautious 34% who need a bit more convincing but eventually jump on board. But watch out for the chasm between early adopters and the early majority – it’s the toughest hurdle to clear, like threading a needle in the process – but also the key to breaking through to exponential growth. If you can pass the 2.5%, and the 13.5%, you will reach the 16%. This is the Tipping Point. This is the 0.16 growth chasm. This is Point16. To date we have worked with over 100 businesses of all shapes, sizes, and stages of business from start-ups to corporates in multiple industries. Each business is complex, but we believe business at its core is simple. Tipping Point was Malcolm Gladwell’s philosophy. It inspired us to help businesses cross their tipping point, leverage their magic moments, and create momentum for themselves – regardless of their growth goals. Point16 is our reminder to do that every day for our clients.

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