In any high-growth business, there are 2 very distinct yet complementary forces at play – the need to drive growth and the need to build the foundations that enable growth.
You've probably found yourself wondering, should I drive more growth and win more customers? Or should I go into a period of consolidation, and focus on bedding down the foundations and getting the systems right?
The challenge lies in balancing these 2 forces. It’s almost a catch-22 situation – you need to get the foundations right to put yourself in a position to enable sustainable growth over the long term, but you also might need the cash from the growth to invest in the resources you need to build the foundation.
So where do you start? Today I’ll share how you can balance these 2 forces within your business so you can grow in a sustainable way and avoid mistakes many business owners make.
In the ‘drive growth’ stage of business, you’re essentially focused on anything that enables acquisition – typically marketing and sales.
Entrepreneurs who lean towards this style of growth tend to invest most of their energy into increasing revenue. They’re good at thinking big, and their attention is always on the next sale or winning more customers.
While this obsession with growth is essential if you want to scale, the flipside here is that in the rush to acquire new customers, you might become unable to effectively deliver your product or service. You might end up with a larger pool of customers – but chances are they will be unhappy customers.
In contrast, in an ‘enable growth’ focused business, you’re focused on getting the foundations right, so that you can scale sustainably.
Business owners who lean towards this style of growth are generally driven by a high degree of care for their existing customers and obsess over putting the systems and resources in place to enable them to deliver their product or service seamlessly.
While this might be the ideal situation, the reality is businesses that live solely in the enable growth phase often struggle to actually grow.
So much bandwidth is spent trying to achieve operational perfection, and little time is left over to focus on revenue generating activities.
To build a business that lasts, you need to find the intersection between enabling and driving growth.
As opposed to focusing on growing at all costs, the objective should be to become a well-rounded entrepreneur with the capability to build a structurally sound organisation that can grow beyond you.
To help you do this, my team recently developed an industry first diagnostic tool for business owners – the Business Growth Profile. This tool allows you to identify weaknesses and strengths within your business, and map out a growth plan so you know exactly where you should focus your attention next.
Click here, to get access to the Business Growth Profile tool for free.