One of the biggest challenges I find many small business owners face is dealing with complacency. When a new business first starts out, owners are overcome with excitement with every forward step. But at one point or another, the excitement of the early days starts to slow down, and eventually your company may begin to experience a plateau.
A stagnant business is one that faces little to no new activity for an extended period of time. Complacency tends to come from sticking with the status quo and getting used to your business’s “comfort zone”. Many business owners adhere to the mindset of “if it was working for the first 5 years, why change it now?” The truth is, sometimes change is exactly what you need to revitalize your business and get it growing again.
If you’re facing complacency in your business, below are 5 steps for revitalizing your business to get it back on track for growth.
1) Find out what your customers want
A lack of understanding about what your customers truly want from your business can be detrimental to your small business. This is why engaging in market research is essential to drive your company’s growth. Have you had a conversation with your customers to find out what needs are being met, and what needs aren’t? By hiring a market research company or a marketing agency with a specialization in market research to conduct unbiased market research, you will be able to gain invaluable information about your customers as well as your competitors. Once you’ve done this research, you’ll have a much better idea about how you can fulfill your customers’ needs to the best of your ability.
2) Focus on increases in certain sectors and products
Your industry landscape changes at such a rapid pace, and as a small business owner, it’s important that you keep up-to-date with it. Look at projected growth sectors to get an understanding of which products or services are headed for long-term growth, and which ones are on the decline. Some may be obvious, but others may not be so apparent. This is why it’s crucial to take the time and do proper research. Once you have a better idea about the projected growth rate of certain sectors, consider shifting your business model to become more aligned with these industry changes.
3) Re-examine former revenue sources
While focusing on changes in the industry landscape is important, equally important is looking at what has traditionally brought you revenue. After the first few years of your business, you may have lost focus on areas that were once reliable sources of revenue for your company. Have you steered your attention towards niche areas as a result of increased demand, and lost sight of your more dependable revenue sources? If your business has stalled, one of the first things you should do is gauge whether or not you have neglected some of your core competencies at the expense of chasing something new.
4) Review your company’s operations
I’ve found that many small businesses do not focus enough time and energy on their internal operations. Often, owners struggle to let go of the “startup” mindset they once had. This is a shame, as a company’s internal operations can have a huge influence on the productivity of their business. As your business grows, it’s important you grow with it. In a previous blog, I discussed the importance of delegation. Are you delegating work where necessary? Have you considered outsourcing certain tasks to allow you to focus on growing your business?
5) Create a plan
The only way you will be able to properly execute the above steps is if you have a solid plan in place. It’s essential you know exactly what resources are required and how much time and energy is needed to accomplish what you want done. Understanding these two key areas will allow you to set realistic short-term and long-term goals for your business. Remember, making any large-scale changes to your company takes time, so patience is needed to see through your goals.
It is important to keep the momentum going in order for your business not to stall. Although complacency is a frustrating obstacle to face, it is quite common. By following these 5 steps on how to revitalize your business, you’ll be equipped with the confidence to move forward and make the necessary changes needed to get your business back on the track you want it to be.
As a business owner, you know how important it is to keep things fresh and innovative in your workplace, but when making changes, you’ll need to consider how your plans might impact your employees.
If you are in the process of job redesign where employees are assigned new roles that play into their strengths and contribute to a more successful business, these changes can be stressful to your employees. If someone has been hired for a particular job and then he or she is suddenly expected to perform a different role in the organization, tension and stress can result.
A recent report found that 46% of 1,018 Canadian employees recently surveyed had taken time off work or noticed other employees taking sick leave following workplace changes, a common symptom of a stressed-out workplace.
I’ve outlined below a few tips on how you can shift roles in your organization without contributing to employee stress:
- Share your vision.
Why are you doing this? What is this change going to accomplish for your organization? Sharing this vision with employees will allow them to understand exactly why this is happening, and help them find their part in it.
- Keep the lines of communication open in regards to role change.
Ask employees how they feel they can contribute to a new role and encourage conversation. By doing this, you can evaluate each employee’s strengths and weaknesses, while giving them an opportunity to work in a new role they would truly enjoy.
Make sure employees stay up to date as things begin to shift. For example, when you have made some final role decisions, send out an email to all staff informing them of the new structure. Keeping everyone in the know will ensure a smooth transition process.
- When your employees begin their new role, make sure they feel supported.
Assuming a new role can be challenging, especially if the employee doesn’t have a lot of previous experience in the position. Positive reinforcement can go a long way, as employees are less likely to experience stress when they report a positive and supportive workplace culture.
In today’s workplace, you need to keep things fresh, but maintain a balance against a backdrop of inclusiveness and communication. Learning how to handle change effectively is what will keep your team on the right path to growing your business.
How have you successfully restructured your business?
Every day, thousands of millennials are entering the workforce for the first time. Now, many small business owners are considering hiring these individuals and asking what they need to consider before they opt to hire them.
There is no denying that the millennial generation is much different than the generation of workers that has come before them. This means that as a small business owner, you’ll need to make some changes to your business culture in order to accommodate the very unique needs of this particular group.
I’ve outlined a few key items you might want to consider before hiring millennial workers to ensure success for both your company and your potential millennial hire.
Millennial workers, unlike any other generation before them, are keen on the idea of having office hours that suit their personal needs. How flexible are you willing to be with your office hours? When interviewing potential millennial candidates, ask about their work schedule expectations. If you run a business that can only accommodate the hours of 9am to 5pm, then you can expect a millennial may not find your opening suitable to them.
- Millennials want to be valued
Millennials need a great deal of validation from and communication with their supervisor/manager to let them know how they are doing, and to give them praise (preferably in a group setting) when they have done a good job. In the workplace, this may require more of your time and attention. They want to be noticed for their work and you will need to be available to give them ongoing feedback. Do you have the time to provide them with ongoing feedback and praise? If not, a millennial may not feel valued in your office.
- Company Culture
Millennial workers are expecting an inclusive and exciting company culture that promotes social relationships and fosters innovation. If you have other millennial staff, or see your company hosting social nights or team-building activities, a millennial might fit in well. Their need to work and collaborate with a team is key to their success. Is your office made up of employees aged 45+? If so, a millennial worker might feel like an outsider and have trouble fitting in.
There is no doubt this new generation of workers are the future of business, and they have so much to offer, but we need to learn how to accommodate their needs if we are to add them to our workforce.
Forbes published an article on the importance of peer advisory boards, “10 Reasons To Join A Peer Group.” While I thoroughly enjoyed the read, I noticed the author overlooked a few key benefits that I’ve been lucky to witness firsthand as a facilitator. As a business advisor, I take pride in facilitating a peer advisory board that has proven results for my members. The peer boards help business owners reach new heights and succeed in ways they never imagined.
Peer advisory boards led by trained facilitators embody the power of collaboration, accountability, and perspective. A deep bond can be created and a business asset is formed that business owners crave and are hard pressed to find in any other forum. I’d like to share with you my list of top 7 reasons many business owners join a peer advisory board:
One of the greatest benefits of joining a peer advisory board is the exposure you’ll receive to other small business owners much like yourself. Entrepreneurship is unlike any other job, which means the challenges you face on a daily basis are just as unique. As a member of a peer advisory board, you’re able to share ideas with people in similar situations. As a result, the business ideas you’ll be provided with won’t just be erroneous but tried and true.
As the owner of a business, there aren’t many people you have to report to other than perhaps a Board of Directors or other shareholders. When you’re part of a peer advisory board, however, your fellow business owners will often hold you accountable for the executive decisions you’ve elected to make. Many peer groups meet once a month and they often expect some form of progress each month.
We’ve all had ideas that we considered to be foolproof, but as we’ve come to know in business, not every idea is feasible. In becoming a member of a peer advisory board, you’ll receive constructive criticism from the board regarding your potential business decisions. This allows you to fill in any gaps that you may have overlooked.
With competition at an all time high, it’s difficult to know whom you can share your ideas with. With peer advisory boards, anything that is discussed is confidential among members, so you’ll receive reassurance in knowing that you can freely discuss your business decisions without compromising trade secrets.
As previously mentioned, you’ll surround yourself with like-minded entrepreneurs as a member of a peer advisory board. What this means is that you’ll witness them experience successes and/or setbacks, just as they’ll witness the same for you. Either way, you’ll challenge one another to learn from your mistakes, grow, and ultimately succeed.
A common benefit I hear from board members is that a peer advisory board allows them to focus on developing their business rather than working in the business. Don’t get me wrong, one of the best qualities of a business owner is someone who knows the ins and outs of their product or service, but when it boils down to growth, strategic decision-making is a necessity.
As the saying goes, “it’s lonely at the top.” But it doesn’t have to be. Your fellow board members are there to support you through your journey, and many if not all are experiencing, have experienced, or will experience the trials and tribulations you are facing as a business owner. They are as much of a support group as they are anything else.
Have you ever considered joining a peer advisory board? What would be your top reason for joining?
As discussed in my last blog, a business is only as strong as its team, I shared with you why having a strong team is so vital to your business’s success. Once we as business owners understand the value of a strong team, the natural next step is how to create that team and how to measure its success.
There are several key elements to building and measuring a strong team—from defining roles, ensuring communication, to celebrating successes and measuring progress. I’ve outlined four key elements that you’ll need to consider in building a successful team.
- Define and Value Roles
In addition to a job description, ensure your staff have their responsibilities clearly outlined. Clearly defining what it is the team member is responsible for, as well as how it plays a part in the overall company, will help in understanding the value their position plays in the overall growth of your company.
- Openly Communicate
Open, or two-way, communication is a key aspect in running a successful business. Your employees rely on you to communicate your expectations to them and to provide any information or training that may be required.
From a feedback and measurement perspective, communication is key. Create not only an onboarding document which outlines your expectations, but also develop a feedback mechanism for them to communicate their progress or any difficulties they may be experiencing. You can establish weekly or daily meetings with them and ask them to create a report, which gives you an overall perspective on how they are progressing and managing tasks.
- Celebrate Success/Embrace Failure
If an employee or team accomplishes something in the workplace, celebrate it! No, you don’t have to throw a big party with cake, streamers and balloons, but even the simplest recognition like a personalized email acknowledging their accomplishment can go a long way.
However, if mistakes happen, use them as a learning opportunity not just for that individual, but also for the entire team. As a business owner, it’s essential not to place blame or point fingers when something goes wrong. The goal of your team is to work towards the future of the business, so learning from mistakes should make for a valuable lesson moving forward.
A team is non-existent without collaboration. Collaboration can be achieved in many ways – through effective communication, sharing of knowledge, and peer support. Ensure you have built in opportunities for collaboration, which might be regular team meetings, in-house lunch and learns, one-on-one meetings, etc.
Roles often collide and allow employees to work synonymously together. If we think back to the restaurant analogy, a cook would not be able to plate food without clean dishes, nor could a server serve the food if the tables are not cleared.
Lastly, team building and measurement is an ongoing process in which you play a vital part. Allow yourself the time to invite your team to share in your goals and help you achieve them. Just as no man is an island unto himself, no company can be built without a strong team.
What do you and your team hope to accomplish for the remainder of the year?
Regardless of whether a business is seeking to satisfy a major increase in demand, or strengthen its competitive position, growth is a vital step in the development of any business. From hiring employees and increasing office space to increasing production, expanding services or extending product lines there is a lot to consider. Growing your business requires you to take a bit of a leap. Look for these signs before you look to grow your business:
1. You are being approached by potential clients
When you find that you are receiving request and inquires from customers and clients, this is usually a sign that you are in a position where growth is possible. Your brand has now gained just the right amount of exposure to for growth to take place.
2. Your team is strong and ready to grow
It is vital to know if your company has the right staff in place for growth to be possible. Valuable leaders are important however, having a strong team of employees who are experts at what they do and are committed to your business, is crucial in the growth phase.
3. You have the necessary funds for growth
Knowing your sales cycle and what income you can expect on a regular basis will ensure that you do not experience a shortage in cash flow during growth. It is important to know this as you will not be able to successfully grow if your sales do not match with your income. Measure this before you grow.
4. You are personally ready to grow
Are you ready for the commitment that comes with growing a business? If you are not prepared, business growth can have affect your personal well being as well as your family and daily life.Your business may be ready for growth but it can only be successful if you are ready for it. Experts say business owners should assume a 12 month adjustment period to achieve normal balance in the business after a growth spurt.
5. You have realistic expectations
Know what your business can handle. It may be difficult to not get carried away if you’ve mastered a particular market or excelled in a specific area. You may think you have everything you need to do exactly this all over again but be realistic in what you hope to achieve and what you can handle. Consider the economic benefits, your existing infrastructure and current resources to evaluate if you will be trying to take on too much at once.
6. You have met and continue to meet set goals
Stop making excuses for failed goals and instead find alternate ways to meet them. Doing this will encourage confidence throughout all levels of your business and help overall growth in the long run.
If your business is growing, you’re doing something right. It’s also important to understand that growth is a disruptive force. A period of substantial growth will influence every single aspect of your company, which is why you need to adopt a strategic mindset.
It is impossible for both the owner of a large corporation or a small business, to be everywhere at once. Keeping track of business functions including payroll, inventory, managing staff, business planning and analysis cannot be done by one person alone. According to recent industry stats, 70% of individuals in leadership roles are uncomfortable transferring their responsibility to a subordinate and less than 30% of companies today provide training to enhance the leader’s delegation techniques.
As you begin your business, taking on all of the tasks may be a reality however as you grow, you will have less time to spend on things that need your attention. Spreading yourself too thin and trying to have your efforts in every area of the business will not serve you well and you will be risking the true potential of the business.
At this point delegation, or distribution of responsibilities to employees, is needed. Delegating work allows you to offload responsibilities to employees and allows you to focus on larger business matters. Here are a few reasons why I believe delegation is important in any business:
1. Expands the capabilities of the company
Delegation creates a chance to progress and grow the company. Through delegating, you can develop new divisions or departments of the company. New divisions and department can create new positions allowing those that are qualified to move up and advance their career in your business. As this happens your business will grow in all directions.
2. Frees up the leader to address higher value activities
By delegating tasks to employees, you as the owner, are able to attend to critical business functions and address areas that matter the most. Some of these may involve future planning of the business, developing your business strategy and analyzing your performance. By putting delegation practices in place, the business as a whole will grow and efficiency within the organization will improve.
3. More responsibility for employees means overall business growth
Delegation helps not only the manager or owner of the company keep good business order but also helps employees to feel important and responsible for their own actions and responsibilities. Having employees responsible for their own tasks gives them a sense of purpose and drives them to perform at their best, as it is their name on the line. Giving them a sense of entitlement allows your business to flourish as this applies to all levels of staff. Delegating tasks to employees is a great way to motivate the team and keep them moving up in your business.
Retaining quality employees allows for successful business. Delegating and allowing employees to take on more responsibility allows them the opportunity to develop and grow in their career and it allows you as the owner to put your efforts where they matter most – growing your business.