Today, I want to share with you a concept that helped shape my approach to scaling a business - the race car model.
This framework can help you dial in on what's truly important for your business right now and where to focus your efforts for improvements.
The race car model was introduced to me by Bill McGrath, my non-executive director when I was running a PLC business. Bill, the former CEO of Wickes, helped me refine my skills as a CEO and high-growth business entrepreneur.
The model itself is a simple yet powerful way to look at aligning your business for success.
Let me break it down for you:
In the race car model, your business model is the race car.
It's how you acquire customers, generate revenue, and execute your trade.
Think about it, how are you getting your product or service into the hands of your customers, and how are you scaling that?
When the economy is good, the challenge is ensuring that you stay ahead of your competition.
If it tightens up, how agile is your model to adjust?
If your business model isn’t tuned for the long haul, you risk stalling.
Your business model should be aligned with your growth plan, which focuses on the next 12 months broken into quarterns and monthly milestones with weekly sprints.
While it's important to have a vision for the next 3 years, your immediate focus should be on customer acquisition and driving revenue right now.
Now, let’s talk about the finance model, this is the journey you’re going on with your business. How far are you trying to take your race car?
Are you aiming to travel from Leeds to London, Tampa to Miami
Your financial forecast needs to answer that.
Forecasting isn’t just about guessing what the future holds; it’s about setting clear, realistic goals for the next 12 months. It’s about ensuring that your resources (fuel, pit crew, and sales team) are aligned to drive you as far as you want to go.
Your operations model is your pit crew - the people who are responsible for getting your business running smoothly. These are your employees, from the management team to customer service representatives.
In the race car world, you need people to change the tires, refuel the car, keep track of lap times, and keep everything running smoothly.
Similarly, in your business, every team member plays an important role in ensuring your success.
Now, let’s talk about the driver, your sales team. The sales team is the one on the track, making the overtakes, negotiating deals, and taking your business message directly to the customer. They are the ones competing to win.
Ask yourself:
The sales team should be highly motivated, skilled, and focused on growth. If you want your business to move forward, you need a strong driver at the wheel.
Finally, your marketing model is the fuel in your tank.
How far do you want to take your business?
To reach your destination, you need enough fuel to power the journey.
Marketing is the resource that will drive your business forward. The right marketing strategies will provide the momentum you need to keep your race car moving.
You’ll need to assess what kind of fuel (marketing efforts) you need to keep up with your sales team’s drive. If your sales team is moving fast, make sure your marketing is pumping enough fuel into the business to match the pace.
The race car model is about alignment, everything in your business must be working together toward the same goal.
Your business model, finance strategy, operations, sales team, and marketing efforts should all be finely tuned to ensure that your business is moving forward as efficiently and effectively as possible.
So, how aligned is your business right now?
Are your sales, operations, and marketing working together to propel you forward? If not, it's time to adjust your race car for optimal performance.
In business, just like in racing, speed and efficiency are everything.
When your business is aligned and all parts of the model are running smoothly, you’ll be able to accelerate growth, meet your goals, and stay ahead of the competition.
Let’s get your business aligned for the race ahead!
Always here to help you start, grow, and thrive. Let me know how I can support your next big move.