It is amazing how many businesses are stuck in stage 2 – the survival stage of growth. What is it that causes this to become an obstacle to business owners developing a self-sustaining business? In a word – MANAGEMENT!
If you aren’t already familiar with the stages of the growth cycle or the main goal of the survival and self-sustainability stages I would recommend that you watch the short video below before you read on.
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So what is the main task at hand to get out of the survival stage and into the self-sustainability stage? It’s all about putting business systems in place. Not growing the business, adding new products, establishing new channels, finding new or expanding markets.
By creating business systems you make the business operate independent of you or others to create cash flow. This in-turn reduces risk in your business and increases value. Once business systems are in place then you can look at these other objectives and they be easier to achieve because the business runs itself!
Improving Business Systems – Management 101
So, why did I say management is the main obstacle to stage 2 growth? Because many small business owners never really managed a business before. Most get into business because they are good at their trade or selling. But being good at an operational aspect of your business doesn’t mean you have the management or leadership skills necessary to manage a growing business.
This is why you see so many courses at local small business organization on things like accounting, marketing, selling, finance, etc. But, what do you need to take based on where you are in your managerial development? Good question. You can use the Small Business Growth Assessment to identify the strengths and weaknesses that exist for both you and your business.
Most of the work I do with small business owners is developing management and leadership skills. By coaching them they develop their managerial and leadership skills. As they apply these skills to their business they can address problems that are holding back their business’ growth.
You’d be surprised how easy it can be to fix a small business’ problems when you know what you’re doing. Nine chances out of ten it’s because the problem(s) require skills unfamiliar to the small business owner.
Case in point, how many people really understand how to create business systems? If you don’t know how to design, document, test, train and implement business systems your business never gets beyond the survival stage.
So what’s holding you back from learning how to scale your business? Do you have all the management and leadership skills that you need to lead your company to the next level? Or, are you struggling to create the business systems necessary to remove yourself from your business? In either case DE, Inc. can help. Just drop me an email and let me know how I can help.