If money, process, and opportunity were no object, where would you like to see your business one year from today? Close your eyes and really think about the answer to that question. Take a few minutes — we’ll be right here on your screen when you’re done.
Last week, we discussed how compartmentalizing your goals can help get your business on the right path. This week, let’s tackle scaling.
The dream for every entrepreneur is to create a company where the team is engaged; the customers are doing your marketing, and everyone is making money. One helpful resource to step towards that dream is “Scaling Up,” a book that gives supplemental insight into incorporating these compartmentalized goals into your daily routine.
The four main areas you need to master to scale up are:
- People: Attract and retain the right people.
- Strategy: Create a truly differentiated strategy.
- Execution: Drive flawless execution.
- Cash: Have plenty of cash to weather the storms.
“People join companies. They leave managers. Therefore, to keep your team happy and engaged, you need one thing above all else: great managers — not free lunches or yoga classes!” – Verne Harnish, author of “Scaling Up”.
You can’t do everything, so invest energy and time into hiring an A-team who is capable of making decisions and exceeds expectations.
Chose managers for their coaching abilities, not their technical skills. Choose those who drive purpose for the team and inspire them to achieve more. Great managers delegate well by setting expectations and establishing check-ins for a consistent feedback loop between employee and manager.
Your business strategy and values separate you from the competition. Your culture and values need to speak so strongly that it’s clear when prospective employees don’t align. Are your company’s values strong and strategic?
“Scaling Up,” offers a 7-level approach to strategy:
- “Words you own:” Position your company with words or phrases that define it.
- “Sandbox and brand promises:” Understand your most valuable customers and appeal to their emotional needs as much as their reasonable needs.
- “Brand promise guarantee:” State the most important thing your brand will deliver, and stand by it.
- “One-PHRASE Strategy:” Your brand may deliver great quality, price, comfort, and style but stick to one main benefit.
- “Differentiating activities:” Explain 3-5 ways your brand is different than the competition.
- “X-Factor:” Find that one thing that makes your brand outpace your competitors.
- “Profit per X and BHAG:” BHAG stands for “big hairy audacious goal.” Find your company’s BHAG and the measurement metric.
Strategy without execution is just talking. A well-executed strategy propels successful business. Determine your business’ key performance indicators and regularly check in on how they’re doing.
Cash is king. Maybe even more important than profit when you’re growing a business. Conserve cash by keeping overhead costs low: reduce spending on an extravagant office, collect accounts receivables in a timely manner, and monitor accounting ebbs and flows.
Your Stakeholders will Have Your Back
The principles in “Scaling Up” provide a nice, simple foundation you can use to organize your daily activities around your desired direction. Use principles of people, strategy, execution and cash to create a structure on which your team will find engagement, customers will connect with your marketing and everyone is profitable.
Wondering where to start? Consider a co-working space to minimize overhead costs and increase the resources your company can utilize for scaling up. We offer flexible coworking and co-manufacturing spaces with flexible month-to-month terms and exceptional amenities that truly allows you to grow your space as your business grows. For more information, contact us here.