Question: Ever wondered why your owner-managed business remains small?
Blunt Answer: You don't know how to expand it.
Sorry for the tough love but that's the reality staring you in the face. You're at Level 3 in my Striving for Entrepreneurial Greatness scale and, if you want to grow your business, you need to move to Level 4 in a hurry.
Now I'm going to give you my three golden rules for navigating Level 4 and growing your operation to become an employee-managed business.
Warning! You can read and even understand these rules. However, changing your behaviour to reflect them, that's another matter. You need to act on them otherwise nothing I say here matters.
GOLDEN RULE #1: DON'T EXPECT YOUR EMPLOYEES TO BE AS COMMITTED AS YOU
Staff will never love your company, work as hard in it or be as effective as you. It's simply unrealistic, even a little disrespectful, to expect them to have such dedication when you didn't working for someone else. All you can hope for is to transform employees who rate a 6/10 to an 8/10. Don't even expect that they'll be a 9/10 or a perfect 10/10 like you believe you are. You need to break this belief that your entire payroll should be performing at a 10/10 level. All that will happen is you'll put yourself and your company in a never ending expansion preparation loop and the staff you work to improve will leave before you get them to perfection, causing you to have to start again. Break this growth-limiting expectation.
GOLDEN RULE #2: SAVE FOR NEW HIRES
Once you work your company to the position of having some excess cash, pour it back into the company's growth needs. This frequently means recruiting people who can add value to the expansion process. Conserve the cash for this purpose. Do not spend it on trinkets and baulbles. Be frugal yourself. Don't buy luxuries. Instead reinvest the cash in new talent who can drive your business forward.
GOLDEN RULE #3: CREATE BUSINESS SYSTEMS FOR YOUR STAFF
The moment you start reinvesting cash into the company by taking on more staff, you'll notice that it's hard to manage them all. In fact, there's simply not enough time in the day. So you need to have processes, policies, platforms, templates, procedures and workflows which direct your staff what to do in your absence. This is delegation and I've created a simple 9 Step Process so you can delegate and prosper. This will give your team and their managers guidance on how to do their work. Business systems act as a kind of proxy for you while you're absent or busy.
So, that's it. To scale your business, there are 3 Golden Rules:
- Don't expect your employees to be as committed as you.
- Save cash for new hires.
- Create business systems for your staff.
Now I want to hear from you in the comments section below ...
- When was the last time you said or thought that your staff were not as committed as you?
- How much cash do you have for a new hire and how would this person contribute to your expansion?
- What would your business system look like for this person?
I look forward to hearing from you.