Do you have the following building blocks of growth in place, and can you manage them?
Understanding your core competencies
Planning the growth
Controlling costs
Consolidating growth and working to fill in the down cycles
Keeping control of the debt
Building your team and creating an enviable corporate culture
Taking time for yourself to guard against burnout
Core Competencies - Now that you have a growing business you need to measure the aspects of your business that drive your profits and those that increase your expenses. Common non-core functions in a small business are:
Computer support and maintenance
Customer help lines
Legal and accounting support
Equipment maintenance
Payroll and debt collection
Human resources administration
While it makes good sense to outsource bookkeeping services, you will want to maintain control of your cash and contacts with your clients by keeping invoicing in-house. Functions in your business that are core include those that create a unique competitive advantage, contribute directly to growth, and are a service that others come to you for.
Planning the Growth & Controlling Costs - The tools for planning your growth and maintaining your costs are cash flow projections and multiple scenario budgets planned on a shorter term than one year. While it may be pessimistic to plan for failure, do the math and figure out what things might look like if more money is going out the door than coming in.
Work on Improving Sales in the Slow Times - Huge peaks and valleys in the business cycle make it difficult to grow a substantial business. Look for complementary business services and products that provide a steadying influence. Market intensively, perhaps offering price breaks, during the down cycle so that you can offset your fixed costs. Build relationships with suppliers that build goodwill for the down cycles, as this may give you some leeway in bill payments.
Manage the Cash Beast - Cash flow is king in all businesses, but especially small businesses. A poor business plan, operational budget and cash flow plan make you a financial risk. Get in the habit of doing a mini-business plan for every project, complete with a cash flow projection and best-middle-worst case scenario. Start some cash flow kick starts today:
Ask for deposits
Increase your hourly rate
Shorten your billing cycle
Stop work for customers that don't pay
Employees and Employers, Together, Create a Corporate Culture - Cultivating a winning corporate culture is the "buzz" of top employers. The leader's most important function in creating an exciting, stimulating, growing business is communication. Employees need to feel empowered and that they have contributed directly to the success of the organization. People, including customers, have to believe that the plan will work and that it is not going to be abandoned for the next "hot thing." Both of the previous two points require commitment of the leader to be a coach and team builder. By focusing on outcomes, working through natural leaders in your organization and listening, your job as a leader just got easier.
Take Time for Yourself - Business success depends on the health, creativity, and physical and mental stamina of its leader. Business owners report stress and burnout lead to illness, relationship break-downs and more. Take the time for yourself that you need to stay healthy (read the delegation section one more time!) so that you can steer your ship, through growth, to success.
Do you have the following building blocks of growth in place, and can you manage them?
Core Competencies - Now that you have a growing business you need to measure the aspects of your business that drive your profits and those that increase your expenses. Common non-core functions in a small business are:
While it makes good sense to outsource bookkeeping services, you will want to maintain control of your cash and contacts with your clients by keeping invoicing in-house. Functions in your business that are core include those that create a unique competitive advantage, contribute directly to growth, and are a service that others come to you for.
Planning the Growth & Controlling Costs - The tools for planning your growth and maintaining your costs are cash flow projections and multiple scenario budgets planned on a shorter term than one year. While it may be pessimistic to plan for failure, do the math and figure out what things might look like if more money is going out the door than coming in.
Work on Improving Sales in the Slow Times - Huge peaks and valleys in the business cycle make it difficult to grow a substantial business. Look for complementary business services and products that provide a steadying influence. Market intensively, perhaps offering price breaks, during the down cycle so that you can offset your fixed costs. Build relationships with suppliers that build goodwill for the down cycles, as this may give you some leeway in bill payments.
Manage the Cash Beast - Cash flow is king in all businesses, but especially small businesses. A poor business plan, operational budget and cash flow plan make you a financial risk. Get in the habit of doing a mini-business plan for every project, complete with a cash flow projection and best-middle-worst case scenario. Start some cash flow kick starts today:
Employees and Employers, Together, Create a Corporate Culture - Cultivating a winning corporate culture is the "buzz" of top employers. The leader's most important function in creating an exciting, stimulating, growing business is communication. Employees need to feel empowered and that they have contributed directly to the success of the organization. People, including customers, have to believe that the plan will work and that it is not going to be abandoned for the next "hot thing." Both of the previous two points require commitment of the leader to be a coach and team builder. By focusing on outcomes, working through natural leaders in your organization and listening, your job as a leader just got easier.
Take Time for Yourself - Business success depends on the health, creativity, and physical and mental stamina of its leader. Business owners report stress and burnout lead to illness, relationship break-downs and more. Take the time for yourself that you need to stay healthy (read the delegation section one more time!) so that you can steer your ship, through growth, to success.