GROWING YOUR BUSINESS SESSION TEN

Transcription

1 GROWING YOUR BUSINESS SESSION TEN

2 DANGERS OF UNMANAGED GROWTH Inability to meet performance standards Low employee morale and high turnover Loss of profitability Loss of customer loyalty Lower quality and professionalism Slowdown in business learning and competitiveness Inability of overworked leadership to provide direction Cash flow problems Financing problems Inefficient use of resources Stress and burnout Loss of focus on core objectives Poor communication among employees NXLEVEL GUIDE TO GROWING YOUR BUSINESS OHD 10-1

3 REQUIREMENTS FOR SUCCESSFUL GROWTH A profitable business model Proven, written operating procedures A commitment by you and your employees to your company s core values and mission A clear understanding of your current and future customers A stable or growing market demand Scalable and flexible IT and online tools, systems and processes Good relationships with suppliers and a reliable supply chain The ability to provide additional training to your employees if needed Reliable processes for hiring, training, assessing and terminating employees Emotional and intellectual openness to change Access to growth capital Strong leadership and teambuilding skills NXLEVEL GUIDE TO GROWING YOUR BUSINESS OHD 10-2

4 PLANNING FOR GROWTH What new threats and opportunities will my growing business face? What is my market potential? What new resources and equipment will growth require? How will I maintain good customer service during the growth phase? How will I continue to meet my quality and service goals? Will new regulations apply to my products, employees or raw materials? How will the cost of growth affect profits? When will I break even? Will I have new competitors? How will they react? Will I need to retrain current staff or hire new staff? Will I be able to manage new team members effectively? Will they work well with existing employees? Will I need to change my location or supply chain? How much financing will I need, and where will I get it? What risks will growth create for my culture, customers and cash flow? What steps will I take to mitigate these risks? NXLEVEL GUIDE TO GROWING YOUR BUSINESS OHD 10-3

5 BUDGETING FOR GROWTH Define your goals and objectives at the outset of your planning and budgeting efforts. Everyone in your business should be involved in forecasting costs and sales. This will produce company-wide data and encourage employee buy-in. Many employees resist planning efforts because they don t see what s in it for them. Explain how their activities fit into the big picture. Focus on the projects, products and customers that offer the greatest potential for revenue and profit. Company-wide goals should be linked to company-wide rewards. Remember, you re all in this together! Aim for continuous improvement, not perfection. NXLEVEL GUIDE TO GROWING YOUR BUSINESS OHD 10-4

6 GROWTH MEANS PROFITS Profit growth is the most important metric. All others types of growth (volume, market share, size of the company) increase costs. Policies should allocate assets to maximize profit. Allocating money to the wrong company objectives is a sure way to slow growth. Company and product branding are critical to profits. Products that don t fit your brand, or maintain or increase your competitiveness, should be cut back or discontinued. Customer knowledge and management is the most important focus in a growth company. All other issues should be subordinated to customer sensitivity. Cost controls are important, but you can t save your way to growth. Growth strategies begin and end with the company s leader. Your personal commitment and vocal leadership are essential and can t be delegated. NXLEVEL GUIDE TO GROWING YOUR BUSINESS OHD 10-5

7 Barriers and Pitfalls Moving too quickly Solutions: slow down, review decisions before acting, set realistic goals, avoid making rash financial decisions. Growing too fast Plan for it and grow gradually, anticipate ramp-up costs, estimate costs, manage your workload, look for next level of financing early. Failing to innovate Never stop learning, keep close tabs on competitors, encourage innovative thinking, be aware of new technology, understand your customers. Employee management problems Clearly allocate responsibilities, set fair compensation, set clear performance objectives, prepare for hiring, follow the golden rule. Workspace limitations Be cautious, be flexible, consider telecommuting. Technological limitations Assess tech needs, test and research new techs, keep learning, facilitate collaboration, look for outsourcing opportunities.

8 MOVING TO THE NEXT LEVEL Celebrate what you ve accomplished! Organize what you ve learned! Fill in the blanks! Ask for help! Finish your business plan! Check and doublecheck! Polish your presentation! Don t stop planning! Take advantage of the NxLeveL Training Network! NXLEVEL GUIDE TO GROWING YOUR BUSINESS OHD 10-6