Finding Your Formula For Growth

by Bill Collier

What came first – the chicken or the egg?

Here’s a small-business version of this puzzle: What comes first – business growth or preparation for growth?

Here’s my answer: Start looking and acting like the company you want to be before you get there.

If you want to be a million-dollar-a-year company, put the systems, processes, policies and procedures in place and then grow into them. Then once you get to a million, start laying the groundwork for the next plateau.

For an analogy, imagine you like woodworking in your home workshop. But you’re sloppy and disorganized.

You’d like to have a big, well-equipped shop where you could produce all kinds of projects for friends and family. In your mind’s eye, you can envision all sorts of power tools. Your shop would have supply cabinets, plenty of light and a built-in system for vacuuming away the sawdust as you work. This shop would be your pride and joy and the envy of every guy in your neighborhood.

Trouble is, it’s a pipe dream. In reality, your tools lie broken. Junk and debris are everywhere and you’ve never bothered to hone your woodworking skills. Any time you’ve attempted a project for someone, that person has been disappointed because of your poor follow-through and general disorganization. Your dream seems unreachable.

It doesn’t have to be this way. A dose of discipline and a pinch of planning can do the trick.

So what kind of preparation is needed to pave the way for growth? I’ll condense my advice into two words: Look inside.

That’s right. Look inside your company for the answers. Sure, there are things outside the business that require your focus – most notably the pursuit of customers. But what good does it do to attract customers if you can’t live up to their expectations?

One surefire way to determine where improvement is needed: Follow the frustration. If it bothers your employees or irritates your customers, pay attention. If it is a constant source of errors or is a thorn in your side at your current business volume, think what a pain it will be at 10, 25 or 50% more revenue.

Nagging inefficiencies get in the way of growth. They are to your business what a governor is to a go-cart: Push the throttle all you want – you’re not going any faster.

As the owner, your people may insulate you from the truth. Get out of your office. Work alongside your employees. Visit your customers. Ask them all for the unvarnished truth. What’s it like working or doing business with your company? What don’t we do well? What are the frustrations? Where are the bottlenecks?

Find the answers to those questions and you’ll find your formula for growth.

Bill Collier is the St. Louis-area coach for The Great Game of Business. He helps businesses increase accountability and results with open-book management. He is the author of “How to Succeed as a Small Business Owner … and Still Have a Life.” Bill can be reached at 314-221-8558 or billcollier@greatgame.com. His blog is http://ggobstl.wordpress.com.