As business owners, it’s probably a fair assumption that we all want growth. But is your business really ready for the next step?
As our players in The Transformation Series discovered, and those of you who watched at home, ineffective management or a lack of preparation can leave you, your staff and clients a little bewildered.
You don’t have to search far to find a ton of information on taking your business to the next level. However, I’ve come to learn that there are three key pillars to effectively managing growth:
1. Do you have the right team in place? When push comes to shove, you and your business are only as good as the people you have around you. This came to light in The Transformation Series when our players were forced to look hard at their teams supporting them. It is naive to think that you can carry the new weight of the business; in fact, this will only slow down your prospects of growth.
As Simon Madder and Kim Payne said in the “people challenge”, take a good hard look at your team. Note those members that continually perform. Can you delegate some of your responsibilities to allow you time to work strategically on the business and allow them the opportunity to step up? Also note those members who, for lack of a better phrase, leave you wanting more. If you are to effectively manage the rapid changes that arise when a company expands, you may need to let these members go and bring in the right people to support you.
2. Cut away the fat. Too many businesses think that achieving and maintaining growth simply means taking on more business. Nothing could be further from the truth. In the “business blue print challenge”, Martin Checketts drilled our players on their strategic client base. Low revenue producing, high cost clients will only slow you down. You must clearly determine your ideal client and walk away from those who do not align with your future vision. This may seem counter intuitive, but if your business is to maintain an onwards and upwards trajectory you must understand those clients who are going to help you grow.
3. Feed your business. Too many businesses, large and small, fail because they simply run out of cash. As the owner, it may seem logical to take a little more from the top when the going is good and pull back in slower times. In times of growth, you need to be realistic on your current cash position and the future requirements of the company. As a general rule you should retain 10-20 per cent of your profits within the business. As our judge in The Transformation Series Greg Hayes says, if you don’t feed your business it will die.
I’ve taken these lessons from my personal experience and the experts featured in the 30 Day Business Challenge. If you’re serious about taking your business to the next level in 2015 it may be time to get serious and take on the ultimate growth mentor.
