Part One Stages of Growth

Hi, I'm Jonathan founder of Elevate... We are focused on Elevating Human Potential one business at a time. When you consistently and intentionally raise the human potential in your business you will dramatically increase sales, decrease your stress and frustration and make business fun again. In this video, I will reveal to you four key findings that every small to medium size business should know about growth and the challenges along the way regardless of if you are working on your first million in yearly revenue or have surpassed the 200 million mark. In my career I've had the fun of dreaming, building and selling three different companies for over 7+ figures. I've had no employees up to 50, all with different challenges. I've had successes and failures...and you learn from both. I've also spent the last 15 years consulting with entrepreneurs and corporations helping them increase sales, fix people issues and enter new markets. Along the way, I've been privileged to rub shoulders everyday with hard-working, talented people that risk their time, energy and reputations to build something great. I've learned a lot from them. I share this with you, not to brag or draw attention to myself... but to simply say; I want to help share these lessons with you. I've seen successful people (with lot's of money), be tired, frustrated and with broken or strained family relationships because of the price they paid to build their business. I've been there. But it doesn't have to be that way...I believe a person is building it right when their business allows them to live well, live fulfilled and have time for fun, and gives the same chance to the people that work with them. So let's get started on our first lesson, "The Four Key Findings..." Building a business is a lot like the joys and frustrations of raising kids to adults. As they grow, each phase of development brings it's unique set of challenges. With kids, some well-meaning people say, "ah, don't worry. It's just a phase!" I don't know about you, but that never stopped me from worrying and doing what I could to make sure that my son got through this stage in the best shape possible, with the skills necessary to be prepared for the next. Here is a cycle that may sound familiar: When a business first starts out, you are in survival mode. All hands on deck! Just trying to make some cash! Decisions are often made quickly, in the "do you have a minute?" meetings. Everything is dropped to handle a customer. Hustle. And if you do it right, the orders grow...eventually though the waters seem to be rising...you start feeling like there isn't enough day in the day—maybe financial pressures...you start hearing...we we need more people! Eventually you give in, hire more...and the process starts again! But now it's more complex—the "have a minute meetings" end up taking more and more of your minutes, and then there always seems to be someone that, "didn't get the memo! Here's the first Key Finding: One: Complexity is about employees, not revenue. "Money and processes are easy to manage compared to the dynamic impact that people bring to the table. As executives, we spend a lot of time thinking in terms of revenue growth, product development, etc... I'm we shift to thinking about the people complexities that support our growth and that as we do so...revenue increases without robbing us of the joy of living well and fulfilled. Two: Each Phase of Growth has five overriding challenges. Understanding the different challenges each phase brings will help you to prioritize and focus your activities. These challengers and areas of focus are thought about in three categories: Sales/Revenue, People, process. The priority and amount of focus shifts in each phase. Think of these five things as fingers, allowing you to firmly grasp and guide the direction of your business. What happens if you only have four fingers, three fingers, two? How easy is it to lose your grip and drop the business? How easy would it be for someone or something to unexpectedly pull it away from you? Regardless of if you started the business, or have now stepped in as a leader. You need to understand which phase you are at and more important has the business MASTERED the challenges?- A warning -- if the Executive team doesn't deal proactively with the challenges of each phase as the company grows, they just add up as the company adds people. In other words, challenges don't go away. They just come back to haunt you. It's kind of like kids... for instance if you don't teach your kids manners when they are infants—they don't just suddenly become well-mannered adults. And while having a toddler without manners is a challenge, the chaos fades by comparison to that same lack of manners caused by your pre-teenager without proper manners! Think about the sales process. And I'll spend a lot of time in the sales area of the business because, trust me—NOTHING happens in a business until someone sells something! Early on the boss sells everything. Then a team...and he doesn't have time to train them...they just gotta figure it out! And eventually, bothered by the hassle of sales people problems the decision is made to appoint a sales manager...Usually, the guy/gal that was the best sales person. They have to figure it out too. Before you know it.... There is an institutional "sense of how we sell" but nobody has perfected the metrics of what works, and why...and more importantly, "What should we be doing less of?" If this sounds like your company...that's OK. It was right for the phase of growth—but IT WILL KILL YOU or starve the potential out of the business if you don't intentionally MASTER a sales process. We'll give you some thoughts on that in a later video. But as a test, listen to this clip of a sales gal talking about the energy and impact that leadership mastering Mastering the Sales Process has had within the company she sells for. This company experience remarkable growth and was acquired for a healthy multiple. Ask yourself if your team would talk like this after going through the stress of rapid growth and acquisition? (cut video Clip in later ) The power of getting the people, process and the sales right! Three: The Leadership Style that got you started won't help you cross the finish line. Different Leadership "rules" exist for each Stage of Growth. Growth isn't just about dealing with challenges and knowing when to change your focus. Leadership styles, for both the CEO and the management team also need to change as a business grows in employees and complexity. What's appropriate for a "Start up" CEO who needs to be a coach, marketer, sales person and Janitor all rolled into one -- won't fly later as a company passes the 100 employee mark when a more visionary Leadership style of approach is required. Do you know what your style is today? Do you know what the style of your managers is? Is it the right one? We come to # 4, Know what "turbulence zone" is approaching and prepare. I use the "turbulence zone" to refer to the transition period between phases. (use chart to explain) Expect a level of confusion at these "turbulence zones" as leadership and employees adjust to either increased levels of OR the need to revamp and revise methodologies, processes and procedures that no longer work and acquire new ones that will support growth. Have you ever experienced the complaining of a long time employee who bitterly expresses disdain for the "new corporate rules"... "we never use to have to do all this paperwork. We just knew what needed done and did it." Or the new employee, "I don't know why we even have an org chart, everyone just goes to Bob directly anyways!" Sound familiar? These are signs of turbulence. Instead of shrinking in fear and indecision a great team knows it's in transition between phases. These "turbulence zones" need to be managed proactively or they will cripple the business! Navigated successfully the company enters a new phase of calm, rapid growth and expansion...and yes, eventually another "turbulence zone". Hopefully, this lesson has helped you think about your business if you are an entrepreneur, president, ceo or in another leadership position within a company. In our next lesson, I'll dive deeper on each phase...what the challenge is and some specific things you can do immediately to help your company. Please sign up below to receive our free video series. There's nothing for sale in these videos...just good, solid thought provoking and actionable content. Again, my goal is to elevate human potential one business at a time. If you've enjoyed this video, please do me a favor and post this video on facebook, google + or my favorite, LinkedIn. It will help me spread the word. Thanks again, and see you soon. Don't forget to sign up below and elevate the human potential that's within your business.