Month: December 2017

Modern Start-Ups

It is really an interesting time for  entrepreneurship and your business, isn’t it? Sales are rolling in, and your customers are happy. Are you willing to do what it takes to expand? Do you have what it takes–in your head and in your gut–to enter a serious growth phase?
Before you decide to enter a high-growth phase, here are five indications that you are ready to make such a move:
1. Migrating from a startup to a fast-growing company requires passion, dedication, and near total immersion. You must deal with pressure and incredible anxiety, take on enormous responsibility, and still manage to balance other aspects of your life―like family and health.
2. Of course, revenue alone doesn’t make a functioning business. Revenue and profits are two very different things. Is your business model structured in a way that you’re not just making a profit today but can continue to be profitable?
If you are already profitable or can see a rational and clear path to scalable and sustainable profitability, you may actually be on the road to growth.
3. Growth only happens when all needed “human elements” are in place. This means people who have either worked in a large and thriving business or understand the technologies needed are the right employees to fuel sustainable, scalable growth.
4. When businesses grow, cash can be consumed by any number of incremental expenses including higher rent, utilities, payroll, and inventory costs. If you are planning to grow, then you must have far more cash at your fingertips than you need to just make payroll. You need to have cash available to put back into the business.
5. You have your processes in place. But as you grow, there must be processes and systems in place to deal with volume spikes and dips.IMG_0550

The Paradox of Growth

The Paradox of Growth

Growth creates complexity and complexity is the silent killer of growth. The roots of sustained performance start deep inside, and they are predictable in a growth environment. Growth also scares a lot of creative entrepreneurs when they think of the challenge of expansion.

 

External Story of any Business

This is the narrative that plays out in the marketplace in the form of:

  • Quarterly EarningsProfitable Growth
  • Returns to shareholders/Market Share

    This is the story that is easiest to track, and it’s the one that most people – boards of directors, investors, the media and the public – choose to follow. It’s a story about how a company wins on the outside by serving the customer better than its competitors.

    Internal Story of any Business

    The second story plays out inside a company and it’s much less visible. It’s a story of:

    Building the business/Retaining a quality workforce

    Strengthening the culture/Upgrading the systems

    Some companies excel externally but are troubled internally; others are troubled externally but excel internally. Ultimately though, companies have to excel in both arenas if they want to succeed. The plot lines have to converge.

    You can’t sustain profitable growth in a competitive market if you are a disaster internally, and you can’t maintain a high- performance culture internally for long if you are failing in the marketplace.

    In order to build a successful business in the 21st Century, the Entrepreneur would have to apply techniques and strategies that have not yet been trail and tested because of the ever changing global business environment.