How To Create New Revenue Streams for Your Business
I'm excited to share the insights from my recent talk with Terry Trayvick, a seasoned business leader and the CEO of a home building company in Texas.
Terry Trayvick: A Man of Many Talents
Terry Trayvick is no stranger to the business world. With a background that includes roles at General Motors, Procter and Gamble, and Donnelly, Terry has a wealth of experience to draw from. He also started his own consulting firm and a small private equity firm, where he helps businesses strategize, execute, and secure funding. Currently, he serves as the CEO of a home building company in Texas.
The Foundation of Growth: Fixing Profitability Issues
One of the main topics that Terry discussed was the importance of fixing profitability issues before focusing on growth. Terry shared his experience at Procter and Gamble, where they would give away free samples of toothpaste to potential customers, but only if they had a high retention rate and a quality product. This exemplifies the significance of investing in customer experience and ensuring that your product or service aligns with customer needs.
The Power of Collaboration and Seeking Help
Terry shared the importance of getting the right help and advice when growing a business. Terry emphasized the need to ask the right questions and seek help in areas where you may not have expertise. It's okay to admit what you don't know and to seek assistance from consultants or experts in specific areas.
Leveraging Strengths and Expanding into Different Services
In his journey, Terry has learned the value of being self-aware when pursuing one's passion. He recounts his experience of expanding a home building company by first optimizing their processes and then diversifying into related businesses, such as mortgage, land development, title companies, and insurance partnerships. This strategic approach enabled them to provide a wider array of products to their customers, ultimately fostering business growth.
The Importance of Competitive Advantage
Terry also discussed the importance of collaboration and finding a competitive advantage in small business. Terry introduced the Small Business Pro Network, which aims to provide small business owners with connections, resources, and expert advice to help them grow their businesses. The concept of a competitive anchor was also discussed, where businesses choose one area to focus on and excel in, while still maintaining relative parity in other areas.
Speed and Innovation in Business
Terry highlighted the importance of speed in the home building business. While speed may not be a direct competition factor, it plays a crucial role in profitability. By focusing on reducing build times, companies can lower their interest expenses and compete better on value and pricing.
He also mentioned the significance of innovation in small businesses. Innovation doesn't always mean technology but can be a different approach or solution to meet customer needs. Terry gave an example of a business that innovated by providing storage services for off-season clothes in New York City.
Key Takeaways
Profit First, Growth Second: Focus on profitability before expanding. A positive customer experience and product alignment are critical.
Seek Guidance and Collaborate: Don't hesitate to ask for help and collaborate with experts for informed decisions.
Leverage Strengths and Diversify: Recognize your strengths, fix internal processes, and diversify your services to spur growth.
Competitive Edge Matters: Find a competitive advantage, maintain parity in other areas, and explore collaborative networks for growth.
Speed and Innovation: Speed is linked to profitability. Innovate not just with technology but also creative solutions to meet customer needs.
Whether you're a small business owner or a leader in a larger organization, there's a lot to learn from Terry's experiences and advice.
The recording of my entire Livestream with Terry Trebek on the Small Business Pro University YouTube Channel…
