Pitfalls That Slow a Fast Growth Company pt. 2
By VICKY BROWN
OK, let’s dive right in to the final 3.
Bad Systems. There’s no way around it. Your company can’t successfully be in fast growth mode if your systems are bad, or worse yet, non-existent.
Your systems, the technology, applications, processes, procedures – well they are the spine of your business. When you only have maybe 1 or 2 clients, then you might be able to make due with reinventing the wheel each time a client asks you for something. But when your company blows up, the volume is just too much. If you haven’t standardized, and created templates, and trained people on using the templates – well then every task will just take up too much time. You won’t be efficient, you won’t meet the client’s needs, and you’ll lose money – because wasting time is wasting money.
You also need metrics. It doesn’t matter how fast you’re running, if you don’t know your destination, you’re going nowhere. You need to have a destination, a goal in mind. And once you have that, you need to know how you’re stacking up against meeting that goal. In a word, you need metrics.
Metrics are a method of measuring and tracking performance. So, if the goal is to get 10 sales, and you know your conversion rate (the number of people who sign up vs. the number of people you contact); so if your conversion rate is 10%, then you know you need to contact 100 people. So the metric might be that the sales team contacted 50 people that week. Well, with that metric, you know they aren’t going to make the sales number – because they haven’t reached out to enough people.
Another thing to watch out for is training. You may have the best systems in the world, but if the people who have to use them aren’t properly trained on them, then it’s all no good. So, be sure to factor in systems training. And I don’t mean just one and done either. The systems will evolve, so the training will need to evolve and be refreshed right along with them.
“… If you don’t have the business you want, it’s because you haven’t become the person who can run it yet.“
Not understanding cash flow. Your cash flow forecasting gives you the ability to see what’s coming, both on the revenue, and expense side. Because it’s not about how much money you’re bringing in, it’s all about the timing. When will the money get there, when do you have to pay those expenses. It’s entirely possible that you’re taking in far more than you need on the revenue side, but still going out of business because the timing is such that you can’t pay for your expenses when they’re due.
Take a look at this episode to take a deeper dive into cash flow and how it can help you run your business.
You aren’t growing. In last week’s episode, and so far this week, we’ve covered 4 common pitfalls that can really slow down a fast growth company. But the biggest pitfall – by far is you aren’t growing.
There’s a perfect quote from Alex Charfen: If you don’t have the business you want, it’s because you haven’t become the person who can run it yet.
Don’t waste another minute trying to figure out how to get your business going and what should come next.
Grab your Free 3-Step Leader’s Journey Business Builder course, and get freedom and peace of mind, knowing you are on the right, proven track.
You have to grow as a business leader to continue to make your company successful. And that is all the more true when it’s a fast growth company. The problems you’ll face, every day; the growing pains; the decisions you’ll have to make; the gut you’ll have to learn to listen to – all that requires, no DEMANDS that you, personally, are in growth mode. Your skills have to get sharper every day, your knowledge has to expand every day; your experience has to grow every day.
You’ll need to be able to anticipate shifts in the market, and with your customers. You’ll need to be insightful about the needs of your team members, and the needs of the business. You’ll have to get used to operating in uncertainty, and preparing for the unknown. It’s not easy, but it can be fun. And the more you do it, the more you grow, the easier it gets.
So, get a mentor, join a mastermind, enroll in courses, continue your education. Do any and everything you can to grow your skills.
Trust me, THIS is what entrepreneurship is all about.