Image by rawpixel from Pixabay
Entrepreneurs frequently try to rush their business growth. Certainly, growth is great but if you scale too fast, you’re looking for trouble. The key is to prepare.
Note: You aren’t ready to grow if you haven’t developed a business model that will enable you to attract customers – at less cost – than what they pay you.
How do you get there? Success comes after you develop habits that will help you build your brand, develop sound business operations and successfully deal with people.
Habits that lead to success:
1. Develop viable goals.
It’s OK to dream long term, but you must develop a foundation for growth with short-term goals.
You must do all you can to alleviate uncertainty.
Think profits, not revenue, in order to create wealth, meaningful jobs and business sustainability.
Develop a plan with the right strategies to create pricing power.
2. Evaluate your strengths and weaknesses.
Socrates is famous for “Know thyself.” He was right. You need to know what you don’t know and plan accordingly.
Anticipate challenges. Half of them involve your employees.
So prepare. That includes motivating your staff when you’re facing adversity.
It also means proper delegating.To propel profits, maintain high morale.
It’s also in your best interest to motivate employees to offer you profitable ideas.
3. Monitor your improvement.
Get an objective analysis by making the best investment possible to sustain your growth — find a mentor. With the mentor’s coaching, measure your progress at frequent intervals – each week is ideal – to make certain you’re on schedule.
Success comes after you develop habits that will help you build your brand, develop sound business operations and successfully deal with people.
4. Schedule your time.
Many entrepreneurs find themselves trapped into fighting proverbial fires and get easily thrown off track.
By Thursday afternoon, you should know your schedule for the following week. But, of course, allow for flexibility.
5. Network with others.
Find a group of people with whom you can trust to share your concerns, problems and goals.
6. Keep learning.
Do what you have to do for continuous learning. That might mean voraciously reading, or attending classes and workshops.
7. Be discerning.
Don’t chase every opportunity just to make revenue, but be careful before turning down new business.
8. Continually scout for the best talent.
Hire enthusiastic people who will complement your talents to help you realize your vision for success. Give particular consideration to hiring key employees and top salespeople.
Once your habits are ingrained, start thinking seriously about growth.
Growing at right pace
Plan to grow your business at the right pace:
1. Anticipate how your cash burn rate will be affected by growth. Your burn rate is how much money you spend. Understand how much cash is needed to grow. Learn to manage your inventory costs and continually strive to increase your cash flow.
2. Use caution in hiring. You’ll need more employees, but beware of the costs – recruiting, hiring, paying and retaining. Consider outsourcing wherever feasible.
3. Plan your milestones. Focus on your goals with pragmatic timelines, and increase enough cash to finance your acceleration and goals.
4. Create the right systems. Make certain to have the right systems in place – from solid operations checklists to financials and debt collection.
5. Strategize to stay in the black. Because scaling requires cash, know what the four drivers that influence your profit. If you think you’re ready to grow, first anticipate your break-even point.
From the Coach’s Corner, additional tips:
When there’s No Cash, 8 Tips to Organically Grow Your Business — Organically growing a business is lot like organic farming. Organic farmers pay attention to the signs of nature as a planting guide. They use rich sources of organic matter to build and maintain soil fertility. If you’re like many entrepreneurs, it probably makes sense to grow organically. You might not have another choice.
Insights to Grow Your Business by Franchising — Some micro-business owners like their situations and don’t want to grow. Most entrepreneurs want to expand. If you, too, want to grow and if you use the right methods, your company can grow profitably. Also, when there’s no cash, you can organically grow your business.
When Should You Develop an Exit Strategy? Now…Here’s How — You should always have an exit strategy in place – no matter what. Whether you’re just starting out or you’re a veteran business owner, you should always have an exit strategy.
“I don’t want to do business with those who don’t make a profit, because they can’t give the best service.”
-Richard Bach
__________
