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Wed04162014

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Is Food Processing part of Port “Comprehensive Scheme”?

Is Food Processing part of Port “Comprehensive Scheme”?

The leaders of a Clark County food processing company will bring their efforts t...

Developers cautious but developing

Developers cautious but developing

Although the Great Recession is behind us, many businesses and individuals are s...

Exploring Business Case for Tesoro-Savage Oil Terminal

Exploring Business Case for Tesoro-Savage Oil Terminal

In a few weeks, Tesoro-Savage will publish an economic impact study, conducted b...

The Art of the Deal

The Art of the Deal

Local business transaction attorneys agree -- deals are deals. However, they als...

Excursion company bringing riverboat, regional office to Vancouver

Excursion company bringing riverboat, regional office to Vancouver

The American Queen Steamboat Company (AQSC), a Memphis-based excursion/tour comp...

Montague resigns as president of Identity Clark County

Montague resigns as president of Identity Clark County

Identity Clark County (ICC), a nonprofit business advocacy group, announced Thur...

Design & Construction

Commercial development: Building for tomorrow

Commercial development: Building for tomorrow

If commercial developers feel like circus performers walking a tightrope, there is good reason.

Limited financing, escalating regulatory and raw material costs, and still-low property valuations make penciling out a project difficult. And yet, workforce trends and emerging technologies demand designs that look to the future.

Build to the budget

According to Ron Frederiksen, president of RSV Bui...

Real Estate & Development

Developers cautious but developing

Developers cautious but developing

Although the Great Recession is behind us, many businesses and individuals are still feeling the effects. Local developers were some of the hardest-hit, and for a few years now have been consistently saying that they’re still digging their way out. As building season for 2014 gets underway, we checked in with a few local developers to see how business is looking for this year and beyond. Are we fi...

News Briefs

Wood company buys 14-acres in Longview for $1.5 million

Wood company buys 14-acres in Longview for $1.5 million

JJ Wood Energy LLC has purchased 14-acres of industrial land along Tennant Way in Longview for $1.5 million. The land will supplement the expanding business of bark manufacturer Swanson Bark Wood Products Inc.

Spotlight

Blind Onion Pizza poised for future growth

Blind Onion Pizza poised for future growth

Gene Schwendiman brought 30 years of restaurant management and operations experience to Blind Onion Pizza in 2001. Over the years, the number of stores expanded and contracted, slicing into new territory until three separate markets developed – Portland, Vancouver and Reno. The ownership group agreed to divide and conquer, each partner retreating into individual entities, with Schwendiman focusing...

Accurately Forecasting in 2012

This post was first developed for the CEO membership of VistageConnect.com, Vistage International revolutionary new online community built for the express purpose of developing executives using virtual peer advisory sessions.

Scenario 1:  Small business will focus on the fear of going under

Scenario 2:  Small business will focus on growing

So which is it?   Forecasting revenue is always tough, but since 2008 it has been the most taxing in over 50 years.  To get it right in 2012 you need to “Change the way you look at things and the things you look at will change”  

Try a new set of glasses to look at 2012 and get a view of revenue growth you can predict and control.  The glasses are new, produced by using the science of "Revenue Generation" giving you a clear look at the path to revenue success in this decade.

Theold glasses designed just after WWII and were based on a fulfillment strategy.  Those glasses showed clearly that no other place in the world could produce products, technology, education, leadership and services like North America. 

North Americahad a solid political structure, effective banking, lots of raw material, energy, and an educated work force that had just supplied products and services to winning armies worldwide.  The rest of the world was bombed out, broke, in political turmoil and just starting to put their business and personal lives back together. 

Anyone in the world who had a need for goods or services turned to North America and their needs were satisfied by a highly productive community building more capacity every dayThe glasses that North America used to view the revenue path showed success as more capacity!  Virtually everything that North America could build, someone, somewhere in the world would consume.  As long as the quality was good enough, there was a growing worldwide middle and upper class to pay for it.

Sometime in the 70’s the glasses started to fog when Japan and Europe starting building GREAT cars, TVs, computers, appliances, etc.  Not only were they building great stuff, it cost less than the North American version.  Still, the glasses showed the roadmap to be more capacity, but this time, with workers making less per hour. 

At the time of the dot bomb, a new set of glasses hit the market and those glasses “changed the way we looked at things” and “those things we looked at changed”.

This is what we saw:  The world had way too much capacity, the world had new middle and upper classes everywhere, and everyone was outsourcing, offshoring, using the same software, technology and production best practices.  So after 50 years the playing field was level and in North America we had expensive labor, outdated business models and high cost structures.

However, the new glasses clearly showed North America the road to success and it still required all the skills developed in the middle of the 20th century, plus the lessons learned from the global community at the end of the 20th century as well as a new science and discipline called "Revenue Generation."

This new science of "Revenue Generation" rewards those B2C companies that practice the science, with a return of up to 10 net margin points and rewards the B2B companies with 20 or more net margin points.  Those with the new set of glasses were observing the Science of "Revenue Generation" and the power it has to dominate markets and predictably deliver profitable revenue.  That level of success in 2012, starts with continuing to execute world class manufacturing, logistics, supply chain, and financial practices combined with great leadership just to get in the game.

Once in the game,the winners master "Revenue Generation" and go-to-market.  For a lot of products the largest expense is the combination of sales, marketing, advertising, customer service, product development, and other forms of revenue support.  Often, this cost for "Revenue Generation” is larger than all the rest of the expenses.  Going forward this must be mastered.

Today, not only is the cost of go-to-market high, but the efficiency is low, and the real variable for proving revenue success is not science based, but luck.  Two critical metrics to remove the need for luck are the "Cost of Chaos" for producing revenue and the “Cost Per Sales Hour.”   Those two combined with the 10 key process metrics from the revenue roadmap, give you control over both cost, and top line growth.  These metrics allow predictably and forecasting the future as well as measuring the past.

If small and midsize business get new glasses and focus on:

1.        Going beyond the 20th century definition of a good company;

2.       The science of "Revenue Generation"to win the go-to-market war;

3.       Driving out the costsbuilt in to support aimless capacity:

4.      Developing a revenue strategy;

5.       Getting serious about removing the "Cost of Chaos", managing the “Cost Per Sales Hour” and the 10 KPIs of the Revenue Roadmap, and for the next decade they will be accurate in their forecasts while those with the old glasses will live in fear, and slowly slip away.

 

What do you think? 
Please share your thoughts and experiences with us here!


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The monthly CEO Challenge is published by The Revenue Game, a revenue consultancy that helps clients generate predictable, profitable growth. To get in touch with us directly, please contact Rick McPartlin at (800) 757-8377 or This email address is being protected from spambots. You need JavaScript enabled to view it. .

Opinion

Focus Column

Building “failures” and how to avoid them

Building “failures” and how to avoid them

The recent collapses of the I-5 Bridge over the Skagit River and the floor of the Vancouver Warehouse and Distribution C...

“THINK”ing about construction

“THINK”ing about construction

A surprising resource in Clark County is the “THINK!” program, which is a collaboration between the Building Industry As...

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