Is Your Business Ready?

Dave Conde

Next Level Systems

I recently worked with a young business owner who had a strong company and a vision to grow it much larger. From his perspective, nothing could stop him. He had enjoyed a great deal of success in his 5 years in business. His methods worked and his dedication to his employees and clients was being rewarded, as it should.

However, after examining his business, I had to deliver a brutal truth. The growth he desired would not be possible.

It was not easy to tell him this but I owed it to him to be honest. It wasn't that his products and services were not in demand, they were. He didn't have a marketing problem. In fact, he had a stellar reputation in his market for excellence and dependability. His team was talented, dedicated and loyal. They worked almost as hard as him to build the company.

With his services in demand and plenty of business to be had, a great team and reputation...what was the issue?

I will give you the answer in one word...structure, or more accurately the lack of it. You see, to this point he hadn't needed any. Everything top to bottom flowed right to him as the owner. Every employee reported directly to him. Every invoice to be paid came to him. Every paycheck was signed by him. I could go on. He did everything. While his team was top notch, they all just took his direction. No one else made any decisions of consequence. It wasn't that he didn't trust his team, he simply had never had a need to delegate any authority to any of them. He was certainly "burying the treasure" (read about that HERE) but the problem went well beyond that.

So, I had to tell this man who had asked me to evaluate his business that growth would not be possible. He was working 70 hours a week just to keep up with the one market. How would he find the time to add a second, or a third? Worse than that, what would become of the organization if he were incapacitated or otherwise unavailable to the team for any significant amount of time? Who would pay the bills? Who would pay the employees? Would anyone even know how or have access to do so?

I went on to explain that his company, while very healthy and successful, lacked the structure on which to build his desired growth. Unfortunately, without that structure in place, not only was he risking failure in any new markets but he would also be putting his current market at risk since he would be focusing a great deal of efforts on the new ones.

It was very difficult to give him this news. It was certainly the last thing he wanted to hear. However, I also couldn't allow him to risk his robust business without informing him of the risk he was taking. I knew that he would not want to endanger his livelihood, or that of his employees unnecessarily.

After that sank in, I was able to deliver good news. Creating the structure that would provide a solid foundation for his growing company, could be done. In fact, considering the untapped talent on his team, it would almost be easy. His team was willing and ready to take on more responsibility. They had the ability to act as his field generals when he was unavailable, he needed only to empower them.

Before we could do that however, we needed to address his biggest need. Who would manage his operations, the company as a whole, if he were unavailable to do so for any length of time? Most business owners I know are not only working to support themselves but also to build something that their children could one day assume. This owner was no exception. His children however, were in grade school. So we needed to have a plan for someone that could keep his company afloat in his absence, be it short term or even permanent. This is always a complex and sometimes difficult conversation but a necessary one to preserve the legacy business owners are building.

The next step was to examine his business model and turn it into a written business plan, followed by an Operations Manual. These would not only provide his current employees with a resource on how to handle specific situations, but also a great training tool for new employees in emerging markets. We than worked on an organizational chart which formalized who would take on leadership roles, thereby empowering his team to operate more autonomously. This would be critical if he was going to be out of town, building new markets for the company.

Over the next few months, we continued to build upon this structure. We created accounting processes, automated his payroll process, streamlined payables, receivables and the company's scheduling. A month or two into this process, he opened a location in a new market. By then we were ready to allow him to focus on that new office while the rest of the team handled the original market. The work was not done, but we had taken enough off of the owners plate that was comfortable applying his focus elsewhere.

Over the next few months, we continued to build upon the foundation we created. Within a year, the company was operating in multiple new markets and his team at home was thriving. In fact, several of them became trainers and mentors to the employees in the new markets.

This company continues to grow and thrive. All that was needed was a foundation upon which it could grow. Sadly, I see so many small businesses with enormous potential fall into this trap. I was happy to be able to help this owner avoid it. Of course, he may have found his way without me. Winners usually find a way to win. However it cannot be argued that the journey was far less difficult and less expensive because they were prepared in advance.

Are you contemplating growth for your own organization? Do you have the necessary structure in place to facilitate that growth? If not, please consider bringing someone in to evaluate your company structure. I would be glad to help, but you can use anyone you wish. The important part is that you have it in place. We worked so hard to build an amazing company. You paid the price in blood, sweat and tears...not to mention the time away from family and the stress. Be sure to protect all you invested. Be sure the concrete in your foundation is set before you build on it!

When it is time to grow, will your business be ready?