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Taking Your Business to the Next Level. The Importance of Attitude
We talk to a lot of business owners each week and it never ceases to amaze us that there is such a huge difference in the attitudes of business owners about how satisfied they are with how their business is going.
We see some who work harder than most for fairly small reward, but they don’t want to change. Perhaps their fear of the unknown holds them back. We also see some who are relatively successful, with enough of a track record in their business to be able to say, “I’ve made it.” Some of these people have become complacent, happy to let their business cruise along at the current level.
We also see people accepting that they can not do anything that make any difference in the recession, whereas we see others who have looked for alternative opportunities and invested in motivating and incentivising their staff
However, these businesses often have untapped potential and people who are unfulfilled because they want to grow and develop. A while ago we met a guy who owns thirty-seven businesses. He didn’t look any different to the average guy. He wasn’t unduly stressed. But he was enthusiastic about what he was doing. He spoke with a passion about his businesses and the services they offered to other business people.
What makes the difference between this guy who has taken his businesses to high levels of performance and most of us who are content to sit back and cruise when we have reached our comfort level? For most of us it means learning to manage in a hands-off way. To do this we need to develop management controls that allow us to delegate work or even management of a business unit, without losing control. It has risk, but the potential is huge if we get it right. And why shouldn’t we?
Small businesses go through a number of growth levels, each seeming to coincide with the level of hands-on input contributed by the business owner. The first growth level comes when a sole trader employs the first employee to complement her work in the business. The second transition point comes when the owner appoints a manager over one of the business functions.
The next level is where the owner delegates the general management function to another person. This step allows the owner to step back completely from the day to day running of the business and provides the freedom to relax and enjoy the rewards, or to venture out to start the next business as our friend has done thirty-seven times.
The natural state for a business is to grow. There really is no standing still or cruising. That is just a dangerous illusion, just as risky as growing. A business is either going forward or falling over. A business that is not growing is stagnating.
It is only a matter of time before the market changes or our competitors pass us by, or our employees become disillusioned and move on, if we decide to cruise too long. Just like riding a bike, you can freewheel for a while, but before too long, you need to start peddling to regain momentum.
Most large businesses started out as a small business
Why is it that such a large majority of businesses employ less than five people and only a very small percentage ever grow into large businesses? It is because most business owners are never able to grow their business beyond one or two levels. This is a tragic waste of potential, not only for the business owner, but for our economy.
The tragedy is that it is generally not limited market potential and limited opportunities that restricts business growth, it is limited thinking and limited skill that holds us back. We are not prepared to go beyond our comfort zones to do what it takes to fulfill our potential.
Perhaps it is our ego and ' do it yourself' philosophy that has become so much a part of the tradition, which keeps most business owners from getting help to break through these growth barriers. Or perhaps it is because so many businesses stop growing at these hurdles that we have come to think this is normal.
Taking your business to the next level is not easy, but it is not all that difficult either. You just need to follow the right process:
- Think strategically about the market opportunities and realistically assess your potential.
- Develop a proactive marketing focus and a strategic marketing plan to grow the business in these areas.
- Identify the critical success factors in marketing, operations, human resources and financial management areas to succeed at the next level, while you delegate more day to day responsibilities and spend time developing your management skills.
- Develop a balanced scorecard performance control system to monitor performance and keep things under control without being hands on.
- Develop a management team who gradually take control of day to day operations and are accountable for the results.
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