Let’s be honest. Growing your business is hard work. It takes grit and determination. You will have ups and downs; you will take a step forward and two steps back at times. It can be lonely.
And no matter what anyone tells you, there is no easy formula for success.
The good news is that you can learn from others and avoid mistakes. You can build a healthy, thriving organization. After all, you built a business to do your own thing, be your own boss, and enjoy the profits of your labor and the risk you took. You can make the destination worth the journey.
After working in and with small businesses for twenty-five years, here are some truths I’ve seen over and over that can help you reach your goals.
Revenue matters. First of all, you must have top-line revenue to support your business. If you are struggling financially, make sure you have adequate sales. If you don’t have income, nothing else matters.
Move to a profit mindset. Once you have relatively sustainable income, move from being revenue-oriented to profit-oriented. It’s not how much money you bring in, it is how much you keep. Eliminate unnecessary spending. Cut low-margin products and services, and consider if you need to part ways with customers who aren’t profitable.
Know your numbers. You can’t take the steps above if you don’t know your numbers inside and out. Things like gross and net profit, cost of goods sold, customer acquisition costs, and overhead expenses matter. Make sure you have proper accounting and review the right financial reports on a regular basis. Make adjustments to maximize your results.
Focus on what you do best. You can’t be all things to all people, and the more you specialize, the better your chance for higher margins. It helps you build your brand and attract the right customers.
Build a team. As your business grows, the greater the importance of building a high-performing team to sustain and grow the business becomes. You can’t do it all alone. You need a healthy team with shared values, aligned on your goals, held accountable for results to build a business that lasts and isn’t solely dependent upon the constant day-to-day efforts of the founders.
Ask for help. None of us knows everything. We excel at some things and can do some things well enough to get by. But in business, you have access to many resources – vendors, coaches, fractional executives, peer groups – who have strengths and abilities you don’t have but need. Lean on them when you need to. An outside perspective can be valuable and give you better results than you may be able to get yourself.
Be clear on your destination. Building a business and a team requires knowing exactly where you want to go and what matters to you. Make sure your strategic plan, your goals, and your values are known and lived out throughout your organization.
This list isn’t exhaustive, but the actions, decisions, and steps above are a great start to growing a healthy, thriving company.
We’d love to help you grow your business. You can find us at https://opalpg.com/contact/ or at https://www.linkedin.com/in/cmatt/.
Photo by Jason Goodman on Unsplash
