Editors Note: Small business growth is a problem for most small business owners. Business growth can be stifled by a variety of things, including the management style of the small business owner.
Making your business grow won't happen by itself. As the small business owner, you have to lay the groundwork, do the hard work, and make some of the risky decisions that most small businesses have to make.
Is Your Company Growing Fast Enough for You?
by: Chris Anderson
Are you frustrated by the lack of growth in your firm, or the effort required to squeeze any up-tick in performance? Are inadequate policies and procedures a root cause? To find out, take this simple self assessment to see if this may be inhibiting real growth at your company.
Q. Can you take an extended vacation without the company falling apart?
A. If you answered “no” then you have a job and not a business. A business must have a system of standard operating procedures to ensure the work gets done correctly, even in your absence.
Q. Can your company handle a ramp-up in sales and production?
A. Hidden inefficiencies are often revealed when sales and production increase. If low turns on accounts receivable and inventory, long sales or production cycles starve your cash flow, then something is wrong. Your policies and procedures should document cycle times for your critical operating metrics.
Q. Can you effectively add more people to your organization?
A. Hiring people is simple compared to ensuring they know what to do and have the resources to accomplish their job. Policies and procedures provide the framework for a management system to oversee new employees and communicate who does what by when.
Q. Does opening a new branch office, plant or facility create havoc?
A. Expanding your operations to new locations will test the limits of your policies and procedures. Did you know that franchises are four times more likely to survive than a start-up primarily because they have a well defined operations manual? Are you running your business like franchises run theirs?Q. Is your family happy with your work life? If your business demands too many hours, too much stress, and too little quality time with your family and friends, then you should do something about it. A well defined system of standard operating procedures can allow you take a vacation without worry, increase sales with ease, add people to fill demand, and open new offices without trouble. Then your family will be the happiest on the block.
About The Author
Chris Anderson has over 18 years of sales, marketing and business management experience working with business process design, software and systems engineering. He is also co-author of policies and procedures manual products, producing the layout, process design and implementation to increase performance. He is currently the Managing Director of Bizmanualz, Inc.Visit: http://www.bizmanualz.com/?src=ART37