When working with business owners we start by asking them where on the S-curve they are.
Are they experiencing instability where there’s feast and famine. Often more work than they can handle, and then nothing while they madly scramble for the next job.
Or are they feeling relatively secure. There’s good cash flow. Profitability is average – their margins could be better. And they’ve got capacity to handle more business.
And finally, prosperity. They’re solidly profitable. The business is a well-oiled machine which gives them choices.
Where do you sit?
Let’s assume you’re in the Chaos phase of instability. Feast and famine. How do you move into security?
The first thing is make a decision. How long do you want this cycle to continue?
Looking at the first intersection point moving from instability to security…
You need to first work on your vision. What it is you really want to achieve and by when. Think in terms of outcomes. The money, time and lifestyle you want. Make this as detailed as possible. Can you visualise it? Write it down.
What’s the mindset you’ll need to adopt? Is it having the courage and confidence to take calculated risks? Is it you’ll forge ahead regardless of what your peers think? Just how committed to the result are you?
Think like an elite athlete. They don’t go into the Olympics to not win a medal. So are you prepared to put in the work?
What’s your strategy? Who are your customers? What are they buying? How will you get to them? What resources will you need? Can you create a 1 to 2 page plan that can be implemented?
Do you have marketing and sales system? What is your cost of sale? How profitable are you?
Okay, you’ve now got reasonably reliable cash flow and are profitable. To move into the next phase, you need leverage.
Michael Gerber of E-Myth fame states that systems run the business and people run the systems.
Systems give leverage as jobs get done without constant reinvention of the wheel. You manage by exception.
Leverage also comes from having the right people in the right roles so you can delegate. Remember to give appropriate authority.
However, danger lurks here too.
While you have a solidly profitable business poised for growth, we’ve seen instances where over ambitious growth leads to disaster.
Growth requires fuel in terms of cash. There’s a catch-22 where you need the resources to deliver but can’t afford them until you get the contracts. And you can’t get the contracts until you have the resources.
In other instances growth stalls as the people you started with are no longer the ones you need moving forward. However, it often takes a long time to realise this. Sometime this can be fatal.
Now here’s an interesting point around mindset brought up by client who runs a multi-million dollar organisation.
He said while his business was solidly in the leverage stage, he never wanted to “feel secure” as this could lead to complacency. There is that!
Wrapping up, once again, where are you on the curve? If you’re not where you’d like to be, reach out – we can help.
We’ll directly work with you on your vision, mindset and strategy as well as your marketing and sales systems as required.
For a confidential discuss, give me a call on 0414 913 334.