A while back, I had a conversation with the CEO of a $60 million software company that hit me pretty hard – and the lesson is one that all business owners need to keep in mind.
This CEO was talking about how he feels constant pressure to improve himself so that he can be ready to run the company that will be waiting for him in six months or so. Given their growth rate, he fully expects the business to be 20 to 30 million larger a year from now.
Despite the proven skills he’s demonstrated for years – and used to get his company to where it is today, he still feels intense pressure to be ready to run the company his company will soon become.
What hit me hard is that despite the fact that I regularly invest a fair amount of time and cash to expand my education, I was talking with a guy who also spends a lot of time and money improving his skills and education – and he still doesn’t feel ready.
Are you ready?
Think about that for a minute. Are you preparing yourself so that you’re ready to lead the company your business will be in six, nine or 12 months? Are you learning enough to be ready to manage your own company’s needs?
This isn’t just about software companies and it isn’t limited to companies with double-digit millions in revenue. Every business owner will face this challenge. Every business will push us to improve or it (and we) will pay a dear price for that.
Imagine how your staff, family and others will react if your company is being run by someone who doesn’t have the skills to run it. It’ll be patently obvious – even if you own every single penny of it.
What would happen if you weren’t ready?
It’s particularly serious for companies experiencing serious growth, or for those whose growth suddenly stopped, regardless of the reason.
Our businesses change rapidly. Other people, our own people, the market, clients, competitors and our own growth (or lack of it) all have a way of “moving our cheese“.
Be there to meet the cheese
Years ago, Wayne Gretzky was asked about the difference between a good hockey player and a great one. He replied that “A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.”
Somehow or another, Gretzky would often be where the puck was going to be, ready to do something others could only observe. Some may never have figured out that Gretzky was like a great chess player who visualized the next umpteen moves in his head and as such, knew where to be on the ice.
Running a business isn’t much different. If you aren’t ready for your business when it arrives at that future spot, it could slide right by – just like opportunities (and the puck).
What areas need attention?
You may have run your small business for years, nurturing it from the time when you did everything with nothing and slowly built it to the stable, if not growing, situation you enjoy (I hope) today.
So what do you change to be ready for the company yours will become next year? What do you learn? What do you need help with?
For large companies like the one discussed earlier, finance is where the learning usually needs to occur. But not everyone is looking to create a business that large.
What if you’re not planning to be that big?
The things I see that hold businesses back, or keep them from being able to take advantage of opportunities zipping by are the ones I frequently talk about here: sales, marketing and operations – and things that cause big, sudden changes in any one of those.
Do you have a sales staff? If so, do they have a process for working leads? How would your process hold up to a 20% increase in leads? How about a 20% decrease?
Is your marketing planned, consistent and strategically thought out or does it happen at random?
Are your operations ready for a 20% change in volume? If your best salesperson got a massive multiple location deal tomorrow, how would that affect your ability to deliver?
These are the things a business owner needs to be ready for.