Top 10 Speedbumps to Business Growth

1©2012 Mike Van Horn, The Business Group 800.367.9848

businessownerstoolbox.com

The Top 10 Speed Bumps to Business Growth

. . . and how to smooth them out

From “Grow Your Business without Driving Yourself Crazy®” program



The Top 10 Speed Bumps to Business Growth

1. Culture of smallness

2. Outgrowing your management style

3. Secret knowledge syndrome

4. Culture of no profit

5. Stuck in the comfort zone

6. Blindsided by opportunity

7. Fear of marketing

8. No plan, no accountability

9. Gas tank is on empty

10. Lone Ranger mentality



1. Culture of Smallness

Examples

- “My door is always open.”

- “We’re all one big family here.”

- “We don’t need job descriptions.”

- “The business is me.”



The Remedy –Foster a Culture of Growth

Basic requirements –

- Have the right people

- Systems and procedures for growth

- Skills and capabilities

- Workplace, materials, equipment

- Attitudes and habits that support growth



The Remedy –Foster a Culture of Growth

You must know what business culture will get you where you want to go? E.g. . . .

- Professionalism. Presentation

- Consistency

- Organization

- Decision making

- Lines of communication



Foster a Culture of Growth

Are you, your partner, and your people all on the same page?

- Goals, want to grow

- Level of commitment

- Energy level

- Comfort with newness, uncertainty, fast pace

- Work style

It starts with you.

and . . . You must have the right people.



2. Outgrowing Your Management Style

“The paradox of small business growth”

Management styles that kill growth

- One of the troops

- Fire starter

- Laissez-faire

- Micro-manager

- Bounce from one to the other

- Head-in-the-sand management



The Remedy –Learn to Manage for Growth

There can be no empty rungs on the ladder.

Executive

Manager

Supervisor

Worker

The Ladder of Executive Capabilities



3. Secret Knowledge Syndrome

Things only you can do. Your special genius. You make it up as you go along.

(Keeps you chained to the business.)

The Remedy –

Get secret knowledge out of your head!

Delegate part of everything.

Procedures, checklists, training (Frees you up to focus on growth, ease, and profitability.)



4. Culture of No Profit

Pricing like a charity

Mix business and personal

Life is a write-offAvoid profit to avoid paying taxes



The Remedy –Build a Culture of Profitability

Go for break-out, not just break-even.

Price for profitability.

Pay yourself first.

Spend no overhead before its time.

But, know when to spend money to make money.

Create financial statements that serve you.

Borrow money when you don’t need it.

Never subsidize anyone richer than you!



5. Stuck in the Comfort Zone

What do you do to avoid taking the big steps?

The Remedy – Find your “sweet spot of business success”

Love to do

Best atPeople will pay for



6. Blindsided by Opportunity

There are 3 kinds of people. Those who –

– Make things happen

– Watch things happen

– Ask, “What happened?”

The Remedy –Be like the spider in the web.



7. Fear of Marketing

What bothers you the most about marketing?

The Remedy –

Sell from your passion, your desire to contribute to others.

Find what works, do more of it.

Stop doing things that don’t pay off and that you don’t like.

Start with allies; take small steps.

Get help. You don’t have to do it all.



8. No Plan, No Accountability

“Why bother planning? Things change before the ink is dry.”

“My plan is in my head.” (No-one can hold me accountable.)

“I have a plan. There it is—up on that high shelf.”



The Remedy –

Plan for what you can. Then plan for how you will deal with the things you can’t plan for.

How can you handle the uncertainty in your business?

Plan around what is most important for you—in business and life.

What is most important to you?



The Remedy –Have an Action Plan

If you can’t write it on a page or two, you can’t get it done in a year anyway.

Vision. Long-term goals and objectives

This year’s goals and targets

Financial goals: Revenue. Profit. “Make a profit budget.”

Your pay. “Pay yourself first.”

Marketing and selling. Operations

Balance between business and the rest of your life

Build in a review mechanism.



Key Challenges

How will you identify the toughest challenges?

- Toughest for you to do

- Most critical

- Keeps you up at night

- You’re likely to let it slide

Yeah, that’s the one! You know what it is.

Your plan must include how to tackle this.



9. Gas Tank is on Empty

Your are underappreciated, burned out, underpaid.

The Remedy –

Zen master story

Go back to “Sweet Spot of Business Success.”

Go on to next slide.



10. Lone Ranger Mentality

“Can’t afford help.”

“Don’t need advice.”

“Just need to keep working.”

The impact: Isolated. Make unnecessary mistakes. Stuck in the molasses. Constricted vision. Burnout.

“How to go crazy without growing your business!”



The Remedy – Peer support group

- Problem-solving

- Feedback and validation

- Accountability

- Role models

- Learn by teaching

A resource that people in large companies depend on. How do small operators do this?

I’m glad you asked . . .



That’s it in a nutshell . . .

Does any of this resonate with you? Want to learn more?

Call or email me – 415-491-1896 or [email protected]

Ways to work with me

http://www.businessownerstoolbox.com/business-growth-coaching/