Get Better to Get Bigger

The first step to growing your business is often improving your business. I recommend you review every department, system, process, and policy in your business to ensure it is as lean, effective, and efficient as possible. During this review, ask yourself what would happen to this aspect of the business if growth did indeed occur. Do this, before you start to engage in any growth activities. There are two reasons why this is advisable. First, you want to ensure that your business is ready to grow and that it can handle the additional load growth will place on your people, systems, and cashflow. There is nothing worse than gaining new customers and contracts if your current operations cannot handle the demand. For example, a spike in orders may overtax your inventory and shipping capabilities. If your cash position does not provide for increased purchasing, you may not be able to fill the orders your new customers bring you. Winning a new contract for your services could place a burden on your staff that you are not ready for. Do you have a plan in place to ramp up to meet the new demands? Second, any weak spots in your business will be magnified by growth. If you are experiencing staffing problems, or accounts receivable issues, these will only get worse when multiplied by your growth factor. If your relationships with suppliers or vendors are at risk, then they may break down completely under the additional load more business will place on them. If your vehicle fleet is not 100% maintained and on the road, growth will further stress that resource and cost you dearly. Do you have plans in place to keep all your departments and systems in good working order? Sometimes focusing on improvement naturally brings about some growth. Improving customer support by training call center staff, and showing them how to strengthen customer relationships, provides the potential for referrals from those now-satisfied customers. Business growth is attainable when every part of the operation is running efficiently and has the capacity to do more. Then as growth begins, you can focus your attention on nurturing that growth instead of shoring up sagging systems. To get bigger, it is often necessary to get better. Tags: Business, Marketing, Communication, Growth, Small Business, Efficiency, Systems