Business owners frequently hit “ceilings” or encounter a stall in the growth of their businesses. This is not surprising as many entrepreneurs are leading companies that are encountering new internal and external challenges in their business as it evolves, and the solutions of the past are frequently not the solutions for the future.
The following article that I came across on Entrepreneur.com discusses some of the reasons that business growth falls short of expectations. In most cases, the Business Owner was the key person in leading the initial growth of the business, and is also the main reason that the business growth has plateaued. As many small businesses grow into bigger businesses, the business owner finds him/herself dealing with more and more of the day-to-day problems of the business.
In the B2B CFO framework, we depict this phenomenon as getting pulled down into the “Minding” and “Grinding” activities, where the owner is spending a lot of time and energy on putting out fires and moving from crisis to crisis. Ideally, Business Owners should be spending the majority of their time on “finding” activities that drive the future growth of the business.
This notion is also described in the book “Making Money is Killing my Business” by Chuck Blakeman (which I recommend). The author talks about the treadmill of making money in which the Business Owner is caught in the “Tyranny of the Urgent,” reacting to the day-to-day challenges of making sales, addressing production, customer or employee problems, paying bills, etc. While those activities are necessary to run a business, it is important that they are done as efficiently and cost effectively as possible by the right person in the organization. If the business owner is spending most of the time in reactionary mode, it detracts from a focus on what the author calls the “Priority of the Important,” activities that are proactively focused on building a sustainable, growing business for the future.
In the article on Entrepreneur.com, Item 1 (a Flawed or Outdated Business Plan) and Item 9 (Dependence on DYI Everything) speak to many of these growth issues, and provide some ideas on possible solutions. So if you feel like your business is stuck in neutral, take a look at this article by clicking here.
If you are interested in customized assistance in growing your business or need help with other aspects of the financial management of your business, please contact me by telephone at 972-689-1981 or via email at email@example.com.