As a business owner you probably consider yourself to be the captain of your ship, and rightfully so; you are the one that ultimately determines the direction, goals and objectives of your business. But how much of your vision, growth and current income is solely reliant on you?
Approximately 80 per cent of the advisers who have completed our 30 Day Business Challenge noted that their business is dependent on them. This is an alarming fact as principal dependency can stunt your business growth and send its value plummeting.
Given the sheer size and scale of most small businesses it’s not hard to understand why principal dependency is a serious problem. But it doesn’t have to be. With a few simple adjustments and some hard self-reflection, you can start to alleviate the obstacles of principal dependency in a matter of months. Here are four steps to building a more profitable, more valuable and self-sustaining business.
- Have a people plan in place. I’ve said it before and I’ll say it again, your people are the lifeblood of your business. A people plan is simply creating a clear trajectory to growth for all staff. Assess your current team structures. How do they fit in with your vision for growth? You may discover that you require new staff or need to re-position key staff. Finally, communicate your business vision and the roles each staff member plays in helping you achieve your vision.
- Accountability is a must. You team need to know where they are heading in order to remain driven, but it is equally important for you to know how they are performing in order to shape their growth trajectory. KPIs are a must have. You’d be surprised how many businesses operate without them. But the fact is, unless all members of the business are held accountable to their performance, your business is literally flying blind.
- Create a leadership team. Identify your key performers and work with them to become team leaders of the business. Draw on their expertise and experience to mentor the younger members of your team.
- Manage yourself out of the business. Your business needs to operate efficiently with or without you present. In order to achieve this you need manage yourself out. This is the most challenging part as it is a confronting experience, but the rewards in doing so outweigh your fears. If you are the sole owner of your business’ key relationships and revenue lines, it’s time to bring in the members of your newly formed leadership team. Delegate some of your responsibilities to allow you the time to focus on the bigger picture and allow your team to keep the business churning.
Building a completely self-sufficient business can take years and I’m not attempting to say it’s easy, but if you can build these four pillars into the foundations of your business you are well on the way to creating a solid, more profitable and more valuable business.
There are a ton of lessons, tips and strategies to growing a more successful business in the No More Practice 30 Day Business Challenge. If you are interested in finding out more information, please visit the 30 Day Business Challenge.
