Do you know the clear signs for engaging in small business growth? This morning I worked with a very bright and capable small business owner who quit a six-figure job about a year ago to create a business she’s dreamed of. She’s done a fantastic job of getting the basic framework of her business up and running in the past year – she’s made critical contacts in her community, marketed well, and is making a modest profit right now despite pretty high start up costs.
Her question to me was “what’s next?” as she can see that her current business model will only allow her to stay small, at a “hobbyist” level. She wants to live off this business, meaning she needs to net six figures. She’s smart enough to realize that she can’t get to that number doing what she’s doing right now.
Here are the three things I heard her say – all of them a sign it’s time to ramp it up or call it a hobby.
- She’s working herself to capacity and can’t leverage her time any more.
- She clearly identifies 2 opportunities and is hesitant to commit because of a lack of time and production facilities.
- She’s getting frustrated and burnt out running on the gerbil wheel she has created, realizing she’s working hard for very little net profit right now.
I see this exact situation often – the business is established but the path forward to small business growth is not charted. What has happened? The vision this woman had at the beginning has been realized – she has to expand her vision and see herself as bigger, then execute a plan to get there.
This is the exact point at which I see business owners quit. They are afraid to take the leap to ramp it up after they’ve worked so hard to get established. Usually, it’s because ramping up means another level entirely of financial commitment. Small business owners get afraid to re-invest in the business….it’s suddenly a “real” business with “real” costs – more than you can comfortably put on a credit card or comfortably lose. And maybe more than your spouse will support, too.
The sad thing is that most of the time making the decision to ramp up is just at the point when your business could triple or quadruple your income – you are so darn close. But no one trains us to invest in ourselves, right? No one trains us to think like a business owner. We will invest “around the edges” – at a price that doesn’t risk and doesn’t hurt much.
For this woman, she’s got to systematize her business and begin to delegate out portions of the business. She needs someone to handle the online sales. She needs storefront help who can open and close for her. She probably needs someone to handle online marketing. What does she need to keep for herself? Local community building (being the face of her business) and designing new product to sell. Everything else should eventually be someone else’s job.
Is it time to face small business growth in your own business? Remember systematize, staff up, delegate everything but the key functions of creating offers and building your tribe. Frame up your new business model and execute it a step at a time. But ramp it up – otherwise you are marching in place and will soon start thinking “is this worth it?”
Want to know how to get support from your spouse, family, and friends? You can check out my e-book on this exact topic.
I’d love your comments below about how you’ve handled this critical junction – are you still stuck on the gerbil wheel or are you into your expansion now?
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Lisa Manyon says
Sue,
Great post. Leverage is KEY and we always need to be looking for ways to improve, streamline and grow.
Being in business for yourself is NOT for the faint of heart.
Write on!~
Lisa
Jennifer Bourn says
Oh Sue! Getting a business of the ground and bringing a vision to life can be exhausting, especially for a bootstrapping entrepreneur or start up.
I can completely understand how someone could get stuck at that point …They are FINALLY at the point where things are starting to get easier, they look back at all the work and sacrifice and effort and money spent, and they wonder, what’s next? Do I want to take that leap? What will it look like? What impact will I have? How will I be able to do it all …
Luckily, business owners in this situation don’t have to go at it alone! Luckily they have brilliant coaches like you available to help them work though their blocks, create plans that support them and move their business forward, and do it in a way they enjoy.
Mitch Tublin says
No one can be the chief cook and bottle washer – especially when you want to run a busy thriving business.
Great points.
Tiffany deSilva says
Great example of why it is important to have a sustainable business model and solid systems in place. You really can’t grow without them.
Mira Dessy, author The Pantry Principle says
Thanks for sharing this information. I can see how this could happen and hold people back. Definitely something to be aware of.
Trudy Scott Food Mood Expert and Nutritionist says
What a great read – thanks for helping us see when it’s time to ramp up and get help!
Mary Ellen Miller says
Sue you have hit the nail on the head in terms of systematizing your business. Excellent tips! Thank you.
Jessica says
It’s great to learn that there are levels in small business like the steps in your photo, and that there are new investments and growing pains for each of those levels. I’d love to see a breakdown of this like what Heidi was talking about. The major levels and what the “growing pains and investments are” so small business owners know that it’s not just laying the foundation and the money comes.
Heidi Alexandra says
This is such a critical tipping point for so many business owners – I see clients go through these growing pains at $100K, $350K, $1M and $10M marks – your tips for pushing through and getting clear on stepping into the new you are spot on!
Aimee Wilson says
Sue, you spoke out loud what a number of small business owners are thinking. Thanks for identifying the signs that it is time to ramp up.