Small businesses range from a handful of employees up 500. The Small Business Administration defines a small business as 500 employees or less. Businesses change as they grow. What may have been a simple process with 20 or 30 employees becomes daunting at 300. Accordingly, when a small business grows the leadership must grow with it. Small business growth is dependent on the growth of leadership.
Activities that could be shared verbally among a few teammates need to be documented and formally trained as the roster grows to 100, 200, or 300 employees. You can’t manage a supermarket as if it were a roadside stand. And that’s a problem many growing businesses face. As an organization grows, it must also evolve.
Small Business Growth Evolution
Companies that don’t evolve as they grow eventually fail. The streets are littered with organizations that didn’t change as their business grew. Small firms that rely on a few people will eventually stop growing at the limits of those people. For any organization to grow leadership must expand.
Working on the Business
Startups rely on leadership to deliver the goods. Whether it’s capturing new clients, or product creation, leaders are counted on to bring it. But there’s a catch 22. When leaders don’t learn to train, delegate, and lead, not only is growth limited by their ability to produce (one person can only do so much) but eventually, as the business grows, they’ll reach overload.
One of two things happens at this combustion point. She or he steps away from the business, which adversely affects its performance, or they take on more than they can handle until it blows up in their face. Are You Working In or On the Business?
Spreading Your Wings
As a small business grows, their product offering usually grows as well. When it doesn’t, a business puts itself in the position of having all of its eggs in one basket. A businesses success tied to one product or a few customers is fragile and exposed.
On the other hand, when a small business tries to take on too many new products and is unable to deliver the level of service its customers have become accustomed to, even the original products are diminished. How to Grow Your Business And Have More Free Time.
Be Ready for Small Business Growth
It’s a fine line between overdoing it and being prepared. Occasionally, you have to trust in your belief in the organization. An understaffed, unprepared, and untrained team is never ready for growth. Preparing for growth includes adding staff, creating training programs, investing in tools and equipment, and developing policies, procedures, and checklists. Preparing for Sudden Business Growth.
Are You Evolving?
Is your business growing? Have you accepted the role of leading your business or do you continue to do what you’ve always done managing the day-to-day operations? If so, it may be time to ramp up your game and begin preparing others to do the day-to-day so you can lead them past today and into the future.