Are You Struggling to Grow Your Business?
Does it feel like you have hit a wall in your growth efforts? Do your growth strategies feel like they are falling short of the mark? If so, then your company has likely reached a fork in the road and it’s time to give your operations a refresh so that they are relevant to where you are now, and where you want to go.
Often in the struggle to survive those early entrepreneurial days it was necessary for you to adopt band aid solutions for issues that confronted your organization. While these ‘solutions’ made good business sense at the time, the impact of these decisions can begin to hamper the continued growth of your organization.
To give your company a proper “growth tune-up” you will need to see the big picture of your operations in relation to where you want to go and then examine each component’s ability in assisting you to reach those goals.
First, reflect to when you first started your business, what was your reason or goal? Has this changed? If so, how? You need to make sure you have relevant and defined goals because they will guide you in your assessment of your operations. As you review each area of your company you need to assess: Does this assist the company to reach our growth goals? Why/why not? If it doesn’t, can it be refined so it does contribute? Your assessment needs to determine which elements should continue to exist in your company and which ones you should cut from your operations.
Impediments to Your Growth Success?
These legacy issues most often occur in the areas of Human Resources, Financial Management or Operations. Many companies find they must make changes in a least two of these areas to before they are able to experience real growth. While this process may be challenging, it is imperative that you do it or you will be drastically hampering your ability to grow the company.
Financial Management: It is surprising how long companies can exist without having a handle on their true bottom line. This understanding is critical because you need to be able to have an up-to-date financial picture because the added strains of growth can appear quickly and you need to know what resources you have at hand to support the demands of the expanding requirements. To be ready and able to do this you need to ensure that you have implemented a financial management system that can provide you with the data you need and be able to grow with you. By implementing a good financial management system, you will be able to better optimize growth opportunities because you will be able to be proactive due to your quick access to pertinent information for making strategic decisions. All aspects of a company’s infrastructure benefit from a financial management system.
Human Resources: As your company evolves, so should your employees. Too often this isn’t the case, and it can cause real problems in a small company that wants to grow. While not always pleasant it’s essential that you objectively assess your employees to determine who is performing at expected quality or productivity levels. For those that are not performing at expected levels you need to create a plan to help them improve. If they don’t or can’t improve to meet the growth requirements of your organization then you need to have another plan to get rid of them as quickly as possible. While this may be difficult, keeping them on is not good for them and will hamper the efforts of those employees who are performing well.
Operations: Regardless of what line of business you’re in, it is imperative to really understand how you do what you do if you want to grow your business. While this may sound easy, you would be surprised how quickly this knowledge can become diluted or segmented within a company as it grows. Too often employees become very knowledgeable about their own areas but have only a limited understanding of the processes that occur in other areas and how these processes relate to and impact on their areas/functions because the daily functions have move further away from their daily duties and functions. To sustain growth in your company you need to ensure that you and your team remain current on knowing the components of how the company does what it does. Without this clear understanding of process and functions it will be impossible to practice meaningful performance management – tracking and measuring how well you do what you do in relation to the business goals. The practice of operational performance measurement provides meaningful feedback that assists management in determining any necessary adjustments required to meet target operational performance goals. Without this data you will not be able to determine if you are meeting your growth goals, and if not, why not?
You don’t have to wait until your company reaches a certain point to begin implementing these strategic growth/management strategies. Manage your company like the big guys, even if your company is running its operations from your basement. Get a clear picture of where you want your company to go and start charting a course to take you there. Strategic management is the true key to your success.
Kelly Melanson, CPA, CMA is the founder and owner of Kelly Melanson Professional Corporation. She and her team specialize in helping companies grow via strategic financial management practices. For almost 25 years, Kelly Melanson, Chartered Professional Accountant (CPA, CMA) has been helping businesses in Whitby, Oshawa, Ajax, Durham Region and the Greater Toronto Area (GTA) to reach and surpass their profit goals.
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Kelly Melanson Professional Corporation – Chartered Professional Accountant, CPA 11 Stanley Ct, #13 Whitby, ON L1N 8P9 – Local: (905) 666-5071 Toll-free: 1-800-942-5558 – Email: firstname.lastname@example.org Web: https://kmpc.ca