Business owners often believe that by investing more time and hard work, their business will continue to grow. But unfortunately (or fortunately!) that’s not the reality of business growth.
Sheer hard work and investing all the hours of the day into the business will help you to grow your business in the early days. But, as the saying goes; what got you here won’t get you there!
The reality of business growth is periods of growth, followed by a plateau, which is a cycle that repeats over time – this is the Levels Framework for growth.
Start-up businesses can often grow through a couple of plateaus quickly, but can end up falling into the trap of becoming stuck on a plateau for a long period of time and the business owner tends to accept that the business has grown as much as it can.
There are four drivers that are active in every business, these are:
During periods of growth, one or more of these drivers will go out of balance. For example, you might be so busy with orders and running the business that you don’t have enough time to fully train your team. That results in the delivery of your service slipping and customers become unhappy. So you end up loosing customers and money and the drivers naturally rebalance on the plateau.
When the business reaches a plateau, each of the four drivers are balanced. When a business grows and the drivers go out of balance, it’s common for the business owner to feel out of control and often the business forced down to the level (or plateau) below.
Growing a business
Sometimes a business will grow and become larger in size, but they make less money than when they were smaller. It’s a common symptom of businesses that have failed to set the business up for growth. The business’ infrastructure and team isn’t ready to undertake a period of intense growth. ‘Setting out the stall' is covered in much further detail here.
Achieving a balanced business is so important for success and work for everyone involved. The business owner will have more time, the right people will be doing the right things, there will be more cash and customers will be better serviced.
If you think you’re up for the challenge, join our 10-day business growth programme! Ray Moore goes through how to balance each of the drivers in further detail. It’s available for FREE at www.fluidbusinessacademy.com.