Bite-Size Chunks of Wisdom

March 2014

Recent Posts

Do you feel there isn’t enough time in the day “to do” all there is “to do”? Amid conflicting priorities, what do you tackle first? To succeed at growing your business, you need to win at prioritization and focus.

Steven Covey, in his bestselling book, The Seven Habits of Highly Effective People, shares one of the most prolific and encouraging stories on how to identify your priorities. As I recall, here is how the story goes:

A professor walks into his class with several glass jars. One jar contained big rocks. Another filled with smaller rocks. The others, respectively, were filled with pebbles, sand, and water. He asked his students to place a bet on whether the ingredients from all five jars would fit into one.

As you can imagine, the students suspected that the professor had a few loose rocks and bet against that possibility. Anxiously, they watched as the professor commenced.

The professor began by putting the big rocks in first. Next, he positioned the smaller rocks to fit nicely in the cracks and crevices between the big rocks. He then poured the pebbles over the big and small rocks; shaking the jar vigorously to ensure as many pebbles as possible fit. The sand trailed, falling into every imaginable nook and cranny.

By this time, the students were sitting on the edge of their seat — astonished! They couldn’t begin to conceive that all the elements would fit.

The professor, pouring the water gently over rocks, big and small, pebbles, and sand, finished his “lesson”.

The morale of the story? You need to put the big rocks in first, or the other “stuff” gets in the way and takes up all the space.

How can you make all your activities “fit” into your business? Start with identifying the business equivalents of big and small rocks, pebbles, sand, and water — in that order.

Next, plan for the big rocks to be arranged first; followed by the small rocks, pebbles, sand, and water — in that order. Resist the temptation to slide a few grains of sand before the small rocks.

Win at prioritization and focus and you win at growing your business. Now that’s the kind of game I love playing. How about you?

Download The Daily Goal Planner to help plan your day around your business growth.

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You’ve decided to get serious — really serious — about growing your business. Now what? Do you keep doing what you’re doing? Do you work harder? That’s what you are doing and it’s not working. You need a different approach to achieve a rate of growth that is sustainable.

Now that it’s crystal clear you can’t continue down your current path of business development, it’s time to make some tough decisions. Are you ready?

1. How will you grow? That’s not a trick question. We’ve already established that working harder isn’t an option. What other options are on the table?

Do you grow by introducing new products/services for new market segments? Do you enhance your core business with new products/services that are an extension of your current product/service line? Or, does expanding your current product/service line in your current market make sense?

The choice is yours.

2. What will you eliminate? Let’s be honest. We’re all involved in activities that consume our time and don’t budge the needle for growth. We cling to these activities in hopes they pay off — someday.

Guess what? Today is the perfect day to dump all non-growth producing behaviors, activities, engagements, and programs!

3. How will you fund your growth initiative? Where can you make smart cuts in your budget to allocate the funds needed to launch your growth strategy? And, by smart cuts, I mean slash fat and gristle without cutting into the bone or meat of your business.

Eliminating what’s not contributing to growth (See #2) is the perfect source of cash to re-allocate to growth.

4. What can you outsource? Any activity performed by you, Mr./Ms. Small Business Owner, which is not tied directly to your core business is on the chopping block to be outsourced.

Bookkeeping, website updates, paperwork…whatever you’re doing that can be done by someone else (who is likely more skilled) is up for outsourcing.

Even though you’ve honed your skills in these areas and can perform these activities masterfully, doesn’t mean you should…especially if you’re serious about growth.

5. What additional support do you need? “No man (or woman) is an island.” Bringing in outside help that is highly skilled in their area of expertise expedites your growth — especially when you can’t afford to get it wrong.

Nicholas Sparks said, “Nothing that’s worthwhile is ever easy.” That certainly pertains to the tough decisions ahead. When everything is said and done, you have two options — grow or don’t grow — and only one choice to make.

Want to read more about growing your business?

“I want to launch a business, spend my days in overwhelm, and struggle until burnout destroys my health and my family, ” said no small business entrepreneur to anyone ever! Yet, by the looks of it, one would think that was the intention.

As the speed of business increases, more small business owners turn their focus to fixing overwhelm and dealing with all there is “to do”. Although that’s a worthy objective, it does not alter the long-term landscape of a business.

You’re Focused on the Wrong Thing

Business owners, by nature, are problem-solvers yet most fail miserably at solving their own problems. Why? They’re too close to their own situation to clearly see what their business needs.

Not being able to see the “real” problem has them spending their treasures on fixing what won’t make much of a difference in the long run.

With attention placed on reducing information flow, controlling overwhelm, or trying to get more done by working smarter rather than harder, you’re merely applying solutions to the symptom of the problem.

A solution applied to the symptom of a problem is like putting a band-aide over a gaping wound. It may temporarily stop the “bleeding” but under pressure, it returns to its original state. Or, as my Mom would say, “It’s like trying to turn a sow’s ear into a silk purse.”

Experience the loss of a key account, a sluggish economy, or an unexpected emergency and you’re right back to square one with your business growth hanging in the balance.

The Only Focus That Matters

A better use of your time and treasure is to focus on growing your business. Rather than apply solution to the symptoms you’re experiencing, go directly to the source.

The real reason you’re overwhelmed, burnt out, and stressed is because your business has yet to reach its critical mass for growth. Your business growth has either stalled or is too slow for energy to build. Like a plane moving down a runway, your business needs enough momentum for takeoff.

Set your goal for a minimum of 20-30% revenue and profit growth annually. Decide on the growth strategy that makes the most sense for your business. As you do, momentum builds quickly. Your client pipeline fills. Cash flow improves and your profits strengthen. And by focusing on what really matters — your business growth — the symptoms of overwhelm, stress, burnout, and struggle quickly melt away. No matter what is thrown your way, your business will continue to thrive — as will you!

What are you doing to focus on growing your business?

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Business passes through various points that lead to accelerated growth. Like a plane preparing for takeoff as it accelerates down the runway, there are points where a business breaks out and achieves consistent revenue growth. These are called inflection points. Build your business right at these points and achieve growth that withstands the test of time.

According to Wikipedia, an inflection point is a point on a curve at which it changes. It’s a turning point after which a dramatic change, either negative or positive, is expected. An inflection point is like a fork in the road on the growth chart of your business.

Interestingly, those who study growth businesses recognize businesses that achieve sustainable growth share a common inflection point.

The Growth Surge

The first stage that every business passes through is the entrepreneurial stage. This is the phase during which you transform your idea into a viable business with products and/or services offered to actual clients. Systems are also developed during this phase that allows your business to sustain its growth.

Although this phase varies in duration, the average amount of time it takes a business to pass through the entrepreneurial stage is five years. This marks the first inflection point for the business.

If a business grows through this inflection point at a revenue growth of at least 30%, it earns the right to achieve one of the three common time-frame trajectories: four, six, or twelve-years. It is during this time frame that business growth accelerates.

Reflections on Inflections

Before I knew about inflection points, growth rates, and stages of business growth and development, I learned this directly through launching and growing two businesses.

My inflection point was 12 years. Like magic, my business began its exponential growth curve. Unfortunately, at the time, I had no idea how it happened or what caused it.

That’s no longer the case. I’ve learned the significant nature of the inflection points and how to leverage the growth opportunities that lie in wait at those important junctures.

What is it that you want more than anything else? You want your business to grow — and keep growing — through good times and bad, right? If so, pay attention to your inflection points. Do you know what it is? And, more importantly, will you be ready to build the right business at that point?

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Becoming more skilled at working “in” your business, doesn’t always translate to business growth. In fact, with all you’re doing to run your small businesses, it’s easy to lose sight of the two most important influencers of small business growth — your goal for growth and your growth strategy.

Small Business Growth Defined

Simply defined, a growing business is one that is growing their revenue through increasing customer demand. It experiences a growth in revenue and cash flow at rates faster than those in the economy.

A growing business does more than pay overhead or eek out a measly paycheck for you. It produces enough money to reinvest in opportunities to continue to grow the business.

Small business growth isn’t an event in good times alone. A growing business, set up correctly, grows through good times and bad.

The Daily Double

The two things you need to know to grow your small business are:

  1. What is your goal for business growth? Research shows that businesses that experience an annual growth rate in excess of 20% are most likely to withstand whatever is thrown at them.
  2. What is your growth strategy? Like rungs on a ladder, there are several growth strategies you can select. The higher up the ladder you go, the greater the risk — and potential for growth. Know the growth strategies that guide your movements.

Consider this: More than 60% of American’s businesses since 1980 no longer exist. Will your small business suffer such extinction? Not if you know the answers to the two vital questions about your business growth.

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Did you know only 14 percent of executive officer positions at the Fortune 500 companies are held by women? It has remained at that level for the past six years. The board of directors seats don’t fare much better at only 16 percent.

“In fact, the percentage of women (on a board of directors) was one of the strongest correlations with better performance. Better performing companies have a higher proportion of female board directors …” — The Eversheds Board Report, The Eversheds International Law Firm, LLC, March 2011

Comparing these business leadership statistics to the U.S. labor force sparks concern, especially since women make up nearly 50 percent of the labor force and comprise 51.5 percent of management and professional positions. Switch to the consumer side … women account for 85 percent of all consumer purchases. The issue is in part about equality, but it’s more about workforce diversity. How can you effectively take into account concerns of half the workforce and two-thirds of the consumer buying power without diversifying leadership? A recent article in the New York Daily News shared the story of seven female CEOs and the lessons we can learn from them. Here are three BIG advantages to promoting women to leadership.

Women Elevate the Bottom Line

A study conducted by the U.S. Department of State Advisory Committee on International Economic Policy, of executive committees, including in Europe and the fast-tracked BRIC countries (Brazil, Russia, India, China), identified the top companies in terms of their share of women on executive committees. The study then compared the financial performance of this top group with all-male executive committees and concluded:

Companies with the highest share of women on their executive committees have better financial performance than companies with no women.

Diversity Lowers Risk

A board of directors and executive leaders have the responsibility for oversight of the performance of a company’s business operations and they need to understand the changing dynamics the company faces. Diversity in leadership makes it easier to identify and understand risks and develop robust solutions to address them. Diversity should not sacrifice competence. It should be supported with a review of competence, commitment, and character of potential leaders.

A Focus on Social Intuition

In today’s socially driven era, companies are more focused on building relationships than ever before. This includes better relationships with their employees. Women have the capability of focusing on the day-to-day operations while also recognizing changes in the social environment. It’s not to say men don’t have this capability, it’s that women are more drawn to it, making identifying issues easier.

Led my Margaret Jacoby, SPHR, MJ Management Solutions delivers tailored human resource consulting services to small business clients since 1999. If you need help creating a recruitment plan, immediate help is available through her HR Department On Call® program. The program gives you the peace of mind that an expert is always ready to respond to your evolving HR needs and challenges.

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It’s a rare business owner that doesn’t want to grow their business in some fashion. Unfortunately, most small business owners are so busy working “in” their business that it’s difficult to identify indicators of diminished growth…until the lack of growth creates a major pain point in the business. To win at growing your business, you have to win at foresight and focus.

Rather than wait for the pain to escalate, take a quick look at the signs and symptoms that indicate you need a sound growth strategy for your business.

  1. Low revenue growth. This is the most obvious…unless you’re not tracking your revenue month to month. By not keeping your eye on the store, so to speak, you may not be aware that growth has stalled. The longer you wait to implement a growth strategy to pull you out of the stall, the longer, and more costly, it becomes.
  2. More hours being logged over an extended period of time without an equal or better return on time. Granted, some time and effort needs to be invested during the launch of a new product or service. But, when your hours, or those of your staff, extend beyond the initial launch with little end in sight, your growth may be in for a stall.
  3. Discouragement is setting in. Have you noticed that seldom is one discouraged when business is growing nicely? Don’t shrug off or ignore discouragement. It may be the first indicator of a fire brewing.
  4. Business is being lost to the competition. What?! They bought from your competitions after a lengthy initial meeting perceived as being “sales close” worthy? Something is amiss between the alignment of benefits shared and your customers changing needs.
  5. You can’t identify any area in which your business is growing. If you’re unable to readily recognize an area of growth in your business, it’s likely there isn’t one. Pay close attention.
  6. Current products or services are losing, rather than gaining, ground. If revenues on existing offerings are flat, there may be several things afoot. Your product/service benefits no longer align with your customers changing needs or your sales skills may have lost their luster.
  7. You’re burning out. I’ve yet to meet an entrepreneur experiencing symptoms of burnout when business is growing. If you’re thinking that a nice, long, relaxing cruise to Bermuda is in order, your business would benefit greatly from a clearly defined growth strategy.
  8. Your profit margin is shrinking. What is the actual cost of delivering your product? If you’re in the service industry, be sure to include the cost of your time into the equation. Optimizing your business with technology and automation can bring your margins back in focus.
  9. Cash flow is dwindling. Have you looked at your cash flow recently? If it’s not flowing at the rate you want, evaluate your pricing model. While you’re at it, check your expenses, too, to make sure you’re not overextending yourself.
  10. Your business has few raving fans. Are you customers so in love with your product and service that they willing sell for you? If not, you might need to return to “dating” your clients again to gain a better understanding of their needs and wants.

Let’s face it! With all there is to do in a day, you seldom have enough time to complete all there is on your plate. And, if growth slows to a crawl, there isn’t more time one can add to an already busy day to accomplish what’s needed to get the business on track and growing again.

Don’t wait until the pain of not growing overwhelms you. Use foresight to identify the ideal growth strategy for your business and focus to keep your on the right track.

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There’s something exciting about owning your own business. Whether it’s the feeling of freedom running wildly through your hair or the animated “ahhh” that comes from breaking through to the next level, business ownership is electrifying. Overall, though, it’s the growth of the business that is most fulfilling and gratifying.

Show Me the Baby

Growing a business is like birthing a baby. There’s the initial thrill of the possibilities — the fear when the “what ifs” surface — and the angst when your products/services finally make it to market.

And, like parenting, there are days your business is the “apple of your eye” and other days you wonder what invaded your business in the dead of the night!

Overall, parents want to see their baby grow to be a healthy, happy, successful contributor to society. And, every small business owner wants to see their business grow to a healthy, successful entity that contributes to society and the happiness of the owner.

How Will You Grow?

Most businesses fall short of achieving their growth objectives for revenue and profitability. In fact, studies show that only 20% of business owners achieve their business growth goals. Shocking, isn’t it?!

Why is growth so elusive? Although it is the goal of every small business owner to grow their enterprise, few have identified a growth strategy.

There are a variety of growth strategies that you can implement to ensure your business succeeds. Well-known growth strategies such as market development or penetration, and product development or diversification are a few options available for you.

What is your small business growth strategy? Keep doing what you’re doing? Or, identify a clear, concise growth strategy that gets you to the end game you’re working so hard to achieve. It’s the only way to ensure your business scales to the heights you want.

Who would imagine that a business strategy and a 1970s rock ‘n roll band would have anything in common — until you listen to their little known song, “All Mixed Up”. Their song title, in a nutshell, sums up the present day understanding of business strategies and tactics.

I’m All Mixed Up

Small business owners frequently use “strategy” and “tactic” interchangeably. Why? Because we’re “all mixed up”!

Actually, we don’t know when the confusion started (even Google doesn’t know). But, what we do know is that one’s understanding and use of the words has a definite impact on your business outcomes.

Derived from military use, strategy defines a series of patterns or moves to accomplish your business’ mission and vision. Your strategy answers the question, “What will achieve our mission?” Its focus is on the bigger picture.

Your strategies change infrequently and exercise more of a long-term influence on your business, especially when established correctly.

Tactics, on the other hand, consist of smaller steps or actions taken to fulfill the strategy. Tactics answer the question, “How will we achieve our goals?” Their focus is short-term and they flex as needed to keep your business moving in the right direction.

The Power of Two

Like Mickey & Minnie Mouse, Batman & Robin, and Tom Petty & the Heartbreakers, strategies and tactics work best when used together.

If you have strategies without tactics, you have a business full of big thinkers with little or no action. If you have tactics without strategies, you have disorganization, chaos, and overwhelm.

Unfortunately, too many small businesses are “All Mixed Up”. Their focus is on tactics without strategies and struggle unnecessarily to grow their business.

Raise your hand. Who wants to develop their growth strategies? Contact us today.

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Most entrepreneurs are technicians who have launched a business enterprise. They are accountants, lawyers, dentists, doctors, therapists, consultants, coaches, web designers, graphic designers, printers…..you get the point.

Small business owners are, in earnest, masters of their craft — not entrepreneurs. As a result, much of their day is spent exercising the technical skills of their chosen field. It’s what they know. Therefore, they continue to act in the capacity of an employee. They work “in” their business.

Behaviors of Working On Your Business

The skills of working “on” your business are really those of business management. Every successful entrepreneur or small business owner, at one time or another, had to learn the skills associated with business ownership.

Your role as the entrepreneur when working “on” your business is to shape the future of your business. When your vision aligns with what your customers “accept”, the product or service provided by the technician can be turned into a sustainable, scalable business model.

How do you know you’re working “on” your business? The primary behaviors of working “on” your business include planning, tracking, analyzing, learning, and adapting.

What you discover when you work “on” your business conveys whether to pivot to a new direction or persevere on your current path. It defines whether your business achieves success and struggles to find its footing.

Download The Core Business Assessment to identify the fundamental business skills, tools, and resources needed to ensure your business success.

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Testimonial

Brooke Billingsley

Vice President
Perception Strategies

Synnovatia is a strategic coaching firm that is detailed and knowledgeable about business. i have a small business that grew from $150K to $750K because of the goal setting and resources that Synnovatia provided. It saves me years of learning on my own.

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