A Formula for Growth

What came first - the chicken or the egg?

Here's a small business version of this puzzle: What comes first - business growth or preparation for growth?

Here's my answer: Start looking and acting like the company you want to be before you get there.

If you want to be a million dollar a year company, put the systems, processes, policies and procedures in place and then grow into them. Then once you get to a million, start laying the groundwork for the next plateau.

For a practical analogy, pretend you like doing woodworking in your home workshop. But, you're sloppy, undisciplined and disorganized.
Suppose you'd like to have a big, bright, well-equipped shop where you could produce all kinds of projects for friends and family. In your mind's eye, you can envision a new table saw and all sorts of power tools. Your shop would have cabinets for storing supplies, plenty of light, and a built-in system for vacuuming away all the saw dust as you work. This shop would be your pride and joy, and the envy of every guy in your neighborhood.

Trouble is, it's a pipe dream. In reality, your tools lie broken, junk and debris is everywhere and you've never bothered to build your woodworking skills. Any time you've attempted a project for someone, they've been disappointed due to your poor follow-through and general disorganization. You'll never realize your dream.

It's quite simply beyond your ability to manage.

Lots of businesses and their owners are in this same boat. But it doesn't have to be this way. A dose of discipline and a pinch of planning can do the trick.

So what kind of preparation is needed to pave the way for growth? I'll condense my advice into two words: Look inside.

That's right. Look inside your company for the answers. Sure there are things outside the business that require your focus - most notably the pursuit of customers. But what good does it do to attract customers if you can't live up to their expectations?
One sure-fire way to determine where some shoring up is needed: follow the frustration. If it bothers your employees or irritates your customers, pay attention. If it is a constant source of errors and re-work - if it is a thorn in your side at your current business volume, think what a pain it will be at 10, 25 or 50% more revenue.

Nagging inefficiencies and stumbling blocks get in the way of growth. They are to your business what a governor is to a go-cart. Push the throttle all you want - you're not going any faster.

As the owner, your people may insulate you from the truth. Get out of your office. Work alongside your employees. Visit your customers. Ask them all for the unvarnished truth. What's it like working or doing business with your company? What don't we do well? What are the frustrations? Where are the bottlenecks?

What causes errors? Find the answers to those questions and you'll find your formula for growth.

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