The S.C.O.R.E. Method for Stabilizing Businesses

Components of The S.C.O.R.E. Methodology^TM

Understanding and improving each of these components is crucial for effectively stabilizing your business and achieving significant growth.

Strategy

As we mentioned, the Founder/Owner represents the capstone, but is also the core source of the Strategy.  Strategy is specifically speaking to what you, and others, as leaders in your business need to focus on to stabilize your business amid uncertain times.  Many new business owners remain in the Operator perspective and see things from the lens of what will get us through this day, week, or month.  In order for your business to true stability we need to get you into the perspective or a Strategist and give you the right tools and techniques so that you can lead your business to a secure future as you operate and grow your business.

Cashflow (Capital Management) 

Cashflow is the silent killer of Small-to-Medium sized Businesses.  It is effectively the same as your personal budget (at home) but it's subject to different timelines for when money flows out (Accounts Payable) and when money flows in (Accounts Receivable).  If you end up in a position where you have "too much month at the end of your money", you'll find that your business may stop on a dime...literally. 

Now Capital is related to this, think about it like Savings or a Loan.  Each can give you short-term relief, but Savings don't regenerate themselves and Loans have to be paid back.  So the very first place that needs to be addressed is your Cashflow, because Savings can run out and Loans won't always be available and may just make survival harder, if not impossible.

Operational Excellence

Operational Excellence is one of the few real advantages that most SMBs have over their larger competition.  It's far easier to get 5-10 people on the same page than 100 or 1000 times that number.  It's also far easier to get 5-10 people to change direction; ;than a larger organization.  The challenges of Operations in an SMB are overdependence (on a key tool or resource) and maintenance/replacement (for key tools and resources). 

The Founder is often the most knowledgeable about the business, or maybe one key subject-matter expert (SME).  That is a problem because if that key person isn't available (sick, accident, change jobs) then a lot of the knowledge of how to run your business goes with them.  The same can be said of a key machine or toolset (vehicles for transportation, ovens for bakers, fabricator for manufacturers).  Collectively, we call these key dependencies Constraints.  If a constraint stops, the business stops which means the money stops.

Retention (Revenue Management) 

Most coaches and consultants want all your attention focused on Revenue, because it positions them to sell you something extra.  While revenue is great, but  it's not the same as money in your business (Accounts Received).  Additionally, it might be delayed 15-, 30-, 60+ days getting paid to you depending on the agreement with your client and whether they pay on-time...so you have revenue but not money.

New revenue is the most expensive and least reliable way to increase your income.  That is why we first focus on Retention.  When you have an existing client, you don't have to advertise or market to them, as much, you just give them a reason to come back and an offer to spend more on.  You know these clients...what they like, what they buy, what their needs are, and whether they pay on-time.  Leverage this loyal following to more dependable Revenue for your business. 

Ecosystem

Ecosystem refers to all the people that contribute to, or possibly detract from, your company's success.  These can include your...

1. Internal team (leaders, employees,  and volunteers),
2. External teams (suppliers, facilities, service providers, delivery partners),
3. Financial partners (banks, investors, franchisees) or
4. Customers (both direct and indirect)

...it's in your business' best interest to cultivate a positive relationship with each and direct their focus on a singular vision of creating or receiving, as much value as possible.  You won't be able to dictate to any level of your ecosystem, so developing and cultivating a mutually beneficial relationship is invaluable.

Benefits of Using The S.C.O.R.E. Method^TM

Since Strategy is your capstone, the other four (Cashflow, Operational Excellence, Retention, Ecosystem) represent cornerstones for your base.  If, like most SMBs, you have built and grown more like an obelisk than a pyramid, then your cornerstones have to be strong.  The space between your base and your capstone is just subject to all kinds of forces with little to no protection.  You may survive with one weak cornerstone, or have time to fix it.  If you have two or more that needs to be addressed immediately.  So our methods give you the strategies to not just reinforce your cornerstones but expand them, so you and your business have maximum support as you go forward.

In addition to focusing of strengthening your base, Defensive Ascent uses a "triage model".  For those who may not be familiar, triage is the term for how Emergency Rooms, Paramedics, and Field Medics determine where the greatest danger is, so they can address that first.  If you have a bad cut that's bleeding badly, worrying about a sore throat or sneezing is not the first priority in getting you healthy.  The triage allows us and you to see where your greatest needs are, in clear metrics from hard data, so that we can focus our attention on those first.  We will provide ways to strengthen or expand the healthier cornerstones, but make sure your greatest vulnerabilities are the priority to be addressed.

The S.C.O.R.E. Method^TM is the engine of our Defensive Ascent program. But before we can install it, we have to know which of your 'Vital Signs' are in the red. Our Free Business Assessment is the first step—it won't show you the full methodology, but it will show you exactly where the pressure is building.