15 Jun 5 Barriers to Growing Your Business
Have you heard the saying, you can’t see the forest for the trees?” Well, many times business owners are so busy working in their business, they don’t take time to work on their business.
What does that mean? The only person in your company who is motivated to grow your company is you. All the time you spend working on tasks that can be delegated is time you’re not planning, strategizing and building the best business possible.
Your ability to grow is typically a function of addressing 5 barriers to growth:
1) Hiring the right people. These are people who fit your culture, vision and who you can trust. These people are effective and efficient, doing the right things and doing them right. The chain is only as strong as it’s weakest link, look at your people and assess their abilities
2) Having the right processes. Routines set you free. So, having the right processes to eliminate mistakes and shorten cycle times in sales and delivery are critical to your success. However, too many processes can create redundancies and impact your efficiency. What can you do to shorten cycle times and eliminate mistakes?
3)Having the right strategy. An understanding of your product/service, how you’re positioned in the marketplace and what differentiates you from your competitors is invaluable. If you can’t differentiate, then you potentially put yourself in a position of being a low cost provider which impacts profitability.
4)How are you executing? If you struggle with sales, margins or both, take a look at your execution. Maybe your sales people are looking for business in the wrong places or chasing prospects that aren’t seriously considering your products or services. Successful execution is the total of having the right people, processes and strategy in the marketplace.
5) Money. I’ve never heard of a business having too much. Most of the time cash flow is a major concern for business owners. Having a cash budget is critical to know if and when you might need cash and can’t generate it internally due to seasonality, growth or both. Know your cash requirements for the month, quarter and year and make decisions accordingly.
Nothing I’ve mentioned is really earth shattering, but it is however extremely powerful if actually put in place. It’s easy to fill your day with client work, but spend some time filling up your days toward a bigger goal, working on the business. Practicing these fundamentals and working to improve them over time will have a positive impact on your business.