There are many parts of a business that need to be aligned in your structure to improve performance.
Are there weaknesses that frustrate you while impeding your growth?
Does your business have a serious structure ready for growth? You can look at your business like your car. How would it perform if a wheel was missing, or a brake lining was fractured?
Has your business reached a worn-out stage and as a result, you have become bored? Issues may be invisible to you because you’re too close to see them? Do your employees need more development than time will allow, leading to a downward spiral of performance?
Is your business facing a new or unfamiliar crisis with all the changes happening in the marketplace? What is the legal structure of your business, is it able to support your aspirations over the longer-term? Maybe you do need some more advice to help you turn things around.
The product or market niche of some businesses do not permit growth structures. This is the case for many service businesses of small or medium-sized, slowly growing communities and for franchise holders with limited territories.
If your business cannot adapt to changing circumstances, it will either fail or become marginalised and unable to barely survive. Don’t let your struggles become the norm, there are many things you can do to structure your business for sustainability.
“Conformity is the jailer of freedom and the enemy of growth”. John Kennedy
Metrics is one of the most important things for any business when it comes to growth. This is because you need to be working with an accurate picture as the organisation moves forward.
Being able to demonstrate an ongoing increase in customers, revenues and financial resources while giving your business more security are all important for growth and sustainability.
Will there be enough working capital to satisfy the extra demands growth brings, or will your sustainability be put at risk? Ensure your cash flow isn’t being eroded by inadequate expense controls, ill-advised investments brought about because of impatience, or poor management of debtors and inventory?
What is your risk appetite, sustainability and growth often require a willingness to tolerate an uncertainty, ambiguity and or high debt-equity ratio?
Which business functions need fixing to improve your growth structures?
All too often you tend to ignore problems when they are small and easily fixed, hoping they will go away. Mostly they don’t and then become out of hand and the growth you were hoping for doesn’t happen.
Problems can arise because people who focus on systems and processes don’t notice that the services offered by the business are not wanted anymore. You may not understand what is stopping you building a sustainable business. Do a quick scan of the major functions of your business because this will help you to put more focus on the troubled areas.
Build a more structured business for sustainability and growth
The goal is to quickly determine what’s not working well with your business. What are the critical functions to focus on to improve sustainability and growth?
Act like a mechanic when they diagnose a problem with your motor vehicle and don’t know how to fix it. You may require an external advisor to help. Their objectivity, perspective, speciality and experience in sustainability and growth businesses, is important because it usually revolves around them solving your problems.
[read more=”Personal Experience” less=”Personal Experience”]
Try not to get bogged down with the exposed problems at the expense of sustainability and growth prospects. I have always found that putting the focus on the good things about the business that are working and making important contributions is more important than focusing on what is wrong.
This is where the external advisor comes into play. Let them focus on fixing the sustainability problems, while you focus on things to make an important difference by doing the things you are good at and like doing.