When businesses grow to the point where their revenues are in the $500K to $1 million range, a whole new world of challenges opens up.
Small Business Coaching – Building Process
When businesses get larger, they get more complex and that presents new challenges. Having intentional processes in place helps meet this challenge, but most businesses at this stage of growth lack clearly defined processes. Small business coaching can help you build those processes. It has been said that successful business run on a system, but without processes in place there is no system, so things are not always done the same way every time. This creates problems, so getting processes in place is critical to surviving this stage of growth.
Small Business Coaching Addresses Issue of More People, More Challenges
Having more people is among the biggest double-edged swords in business. It is full of pros and cons. The challenges that come with hiring people run the gamut from a need for dedicated human resources professionals on staff to increased legal, regulatory and accounting issues for everyone to deal with. To further complicate things, most companies have not established a specific culture, so employees tend to do things their own way.
Through small business coaching, I help my clients address these challenges.
A big part of the people issues are hiring and keeping the right people and part of keeping the best people involves offering benefits. Not only that, but thanks to the Affordable Care Act, there are certain legal requirements when it comes to employee health benefits and other laws and regulations make other benefits a major consideration.
Speaking of people challenge, you may still not be able to take much, if any, time off because you are still where the buck stops.
It’s the Plan, Man
As with virtually every stage of growth, a lack of proper planning is a key challenge. In this stage of growth, your business plan needs to account for how you will deal with the increased size of your business, more people, new processes, future products and/or services and an eventual exit strategy. You may think an exit strategy is not necessary because you don’t intend to sell your business, but you will eventually want to retire or you may want to plan for what will happen to the business should you pass away or become unable to run the business for any reason. These contingencies aren’t the most fun to plan for, but you’ll sleep better at night knowing you have prepared for the worst.
Small business coaching helps you build an exit strategy so you can leave what the business you built on YOUR terms.
More Cooks in the Kitchen
Growth may cause you to bring on new business partners or investors and this comes with its own set of new challenges. While you have always called all the shots, now you may have to share key decisions with other people. This will also change your need for an increased focus on tracking things, especially your financial results. This creates an increased need for appropriate reports and some business owners may not be comfortable with creating or understanding these reports. You may need to add some seasoned financial professionals to your staff at this point.
Key Clients and Small Business Cash Flow
At this stage of growth, many businesses still have a small number of customers that account for the lion’s share of revenues. This can be a real risk as you grow because as you become bigger you are less able to react quickly to changes in your business, like losing a major customer. A loss of 10% of your revenues when you are generating $100,000 in revenues is easier to replace than 10% of $1,000,000 and this point is not lost on anyone who has ever faced this.
When you hire me for small business coaching, I will help you and your team implement plans and systems to avoid the cash crunch many unprepared small businesses face.