Thinking Through the Bigger Game (Part Two)
Step 1: Thinking Through the Bigger Game
The first thing to do when you are thinking about the large scale growth of your company is to picture how the business will run at $3 million (using our example). How will it be attracting customers? How will the customers buy at that point? How many people will you have working for you? What size of facility will you be in? What will the geographic span be to achieve your new, larger size?
All of these questions and more need to be addressed. By thinking these things through, you will start to see much more clearly what the infrastructure will need to be to support your organization at its new, bigger size.
Step 2: Draw it Out
It is one thing to answer these questions to yourself or on paper. Now, draw out your current organization chart, followed by the organization chart that your new company will need to look like if you are to achieve and sustain the sales levels you desire (in this case the $3 million). Don’t worry about exact names in each of the roles that will be needed. Start with the roles themselves. The visual of how many people will be working in what roles will give you a good idea of space requirements, and other supports that you will need. Don’t worry about getting it perfect. You can, and will, adjust this as you grow.
Step 3: Do the Math
After you have a potential organization chart, now it is time for the calculator. Sit down and figure out what your future Profit and Loss Statement will look like. You may need your accountant’s help with this, but it is worth it. You already have a rough idea of how many people you will need, from your organization chart. Now, through the financial statement, you can figure out the space requirements, the sales support needed, as well as all the other levels of infrastructure you will need to achieve the $3 million in sales. This is critical to catching all that you will need to address, so don’t skip this step.
Step 4: Develop the Transition Plan
You know where you are currently, and you now have a plan for what the future might look like, at triple your current size. Next is to sort out the transition plan. You still can’t afford to add all the pieces at once, but you can decide how you will phase them in, as you grow. Check to make sure you are funding the steps in a manner that makes sense to you. This is another area where your advisors can really help. By making the infrastructure changes event specific (i.e. when I hit $1.5 million, that’s when I add the next salesperson, for instance), you can afford your growth along the way.
The difference is that you will have thought it through, including the pieces that most people miss.
By following this approach to large scale growth, you will find it easier to overcome the fear and tap that internal fire in the belly to grow your business consistent with your dreams.
Filed under Business Development by Michael Walsh.
