I frequently work with businesses which are in growth mode and doing really well. What I know from experience is that during that growth, there are absolute teething pains, often which come about because a business is set up and structured as a smaller business and no-one has taken the time to put things in place for growth, or who stop to ensure the setup is right. With each of these suggestions, I’m working on the basis that you want growth and expansion, rather than it being forced upon you. If that is the latter, then some different strategies are required.
Action Steps When Your Business Grows
- Recognise that a bigger business will operate differently from a smaller one. Whilst the ‘boss’ might have checked every job or invoice that goes out; as you grow, this will likely create bottlenecks, or worse, burnout for the boss. Put systems and processes in place so that key team can do more, taking the pressure off the boss.
- Speak to your accountant (now, not just 12-18 months in the future when tax returns are being done) and discuss your new position. This is especially critical if you are structured as a sole trader or partnership. Now may be the time for a structure change which will more likely protect you, but also allow you to potentially (but legally) pay less tax.
- Is your bookkeeping being done in a very timely manner, no less often than monthly, and potentially even weekly? Are you receiving financial reports every month (minimum) by the 21st of the following month, at the latest? If your bookkeeping is still being done quarterly, because of BAS deadlines, this tells me you don’t monitor your financial reports in a timely manner and are not effectively running that side of your business.
- Now more than ever, cash is king! You and your team need to be all over the money aspects of the business. Are you charging the right fee or rate? As you grow, overheads usually increase, so ensure that when quoting you are covering overhead costs; rather than your profit being lost paying the bills and nothing is left for you. As an expert business coach, I see this happening more often than it should. Are your collection processes in place and working and your trading terms as short as possible?
- As you grow (If you haven’t already), start putting documented systems and processes in place. Checklists are a fabulous way to ensure team action every step of a task, whether it’s onboarding a new team member, starting a new job, or completing a job. When you, as the business owner, did it all, you knew and actioned (hopefully) those steps and whilst you might train/explain those steps, the team forget (or skip, thinking it doesn’t matter), so have checklists that the team have to complete, sign and submit.
- Get good at recruiting smartly and certainly don’t be afraid to put on people. Very small business owners are often fearful of employing, as they are not confident that the growth will be sustainable. Often, once you have people on board, this will actually assist in your growth and you’ll soon be needing yet another person. But please, don’t just engage your daughter or mum to do your bookkeeping, because she needs some extra pocket money, but has little skill in bookkeeping. Instead, recruit, screen and interview at least 3 candidates. One of the most critical steps in recruitment is reference checking, yet this is frequently the step which is skipped, often because you’re busy. Engaging, inducting and training staff takes time, so ensure you’ve got the right people on board! Don’t forget their Position Descriptions (PDs) as well; another thing often skipped by smaller businesses. PDs are more than a piece of paper or ‘busy paperwork’; they clearly define a person’s role and that helps that person do their job better.
- Monitor the money. Another common occurrence of businesses in growth mode is overspending or waste. You’re busy, so you don’t have time to get 2 or 3 quotes. You’re busy, so you don’t check the details of a proposal. You’re busy, so you don’t shop around – whether it’s a contractor or your electricity supplier, shopping around can make all the difference. In my last business, when I was in growth mode and moved to commercial premises, my IT guy virtually doubled the price of a new laptop, purely because he figured that if I could afford premises, I must be doing well, and so he figured he would get away with it. Wrong!
- Improve your marketing, sales and customer service processes. This also includes branding. You don’t have to spend a fortune on a logo, just ensure branding is in place and is used properly. Market whether you’re quiet or busy, to ensure consistency of work, just step off the marketing pedal a little if you are busy, but don’t stop entirely. As you grow, customer service, repeat business and rave reviews (online and in person) will help you continue to grow.
- Monitor the waste. It’s known around the world, that time and time again, the larger the business, the more the waste. Small business runs effectively on a shoestring, so to speak, however, as soon as a business grows, just because the money is there, doesn’t mean it’s ok to throw it away. Again, close monitoring of financial reports, comparing budget versus actual figures and monitoring your operations for efficiency goes a long way.
- Keep overtime to a minimum. OT is often at 1.5 times the rate or more, so paying OT (unless it’s been accounted for in your quote or can be on-charged) is reducing your bottom-line profit. If OT is excessive, it’s often more affordable to put on another person.
- Ditch the D’s. The D grade clients are often those which make you the least money, cost you the most, demand or whinge and never pay you on time. If a client is costing you money, it’s time to move them on. Likewise, if a product or service is losing you money and doesn’t serve a good purpose, then move it along. In construction, often many trades get to a point that they move from domestic to commercial work, as this can be more cost-effective and less time/labour intrusive.
- Step back, but don’t step off. Business owners, especially once they have a General Manager or Operations Manager or 2IC, can sometimes step back too far and lose touch with what is happening in the business. Likewise, though, you also must work ‘less on the tools’ and be more available for the management of the business. This is a balance and can be a challenging skill to develop. Those who do it well keep their finger on the pulse, without micro-managing and know what’s happening in operations, whilst still being all over the management and finances of the business.
Growth business coaching is a big part of what I do. I work with business owners in every step of their business, often pre-business before they start, then as they are getting off the ground, and then during growth phases. You will come across challenges (every business does), but quite often I help clients put systems, processes and steps in place to anticipate problems and be proactive, rather than reactive. Even the most seasoned business owner comes across a challenge or situation they are unsure of how to handle. As a hybrid coach (meaning I coach, I train and I consult/help do), I work with clients in every aspect of their business, from goal setting, time mastery, right through to marketing, sales, operations and team management. Running a business isn’t always easy, but it also doesn’t have to be hard.
If you’d like to access a free sample coaching session, reach out to me here. Remember also, although it’s common in my industry to have 12-month contracts, I don’t. I never lock clients into long-term contracts; I purely ask for notice to stop or pause. My passion is your potential!
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