Fitness is one of the three elements needed to grow a business, The other two are funds and fun.
How does a business get fit for growth?
In our personal lives we know that fit means physically, emotionally, mentally and spiritually able to live on purpose.
In business, the same things are required.
A business that is not physically fit to grow is destined to either fail, stagnate or limp along until it either gets fit or dies.
Here is a checklist of elements required for a business to be physically fit for growth:
- Capacity to grow – equipment, space, time, resources, personnel, skills, knowledge
- Systems that allow for the growth – record keeping, customer information, time usage, culture for change
- Commitment of all involved to that growth (this include family members of staff)
- External support from a mentor, advisors and board
- Skills and knowledge of how to implement systems and resources for growth or access to and willingness to train and change.
- Suppliers capable of providing what you need when you need it.
- Legal compliance in place; including health and safety activities, risk management, feedback loops, checkpoints, timelines and stop loss points.
The Importance of Capacity
Capacity encompasses many things but mainly time, resource and space. If you lack the time to deliver or manufacture a new product or service, you have a challenge to growth. If you lack the space or the resources to store a new product then you have a different challenge to growth.
Here a few examples of capacity issues:
- A new product launch with massive television advertising but due to capacity issues the company failed to produce and deliver enough product. When the advertising finished, the demand ended and since the goods were delivered only to a few stores, there was no further demand for the product. Result – no growth and massive costs leading to a company downsize.
- A service organisation suddenly has demand for their service but they are already working 20 hour days and now there is a demand for 20 hours a day more. Sloppy work results with missed deadlines.
- Plumbers right now are in such demand that they are unable to even handle emergencies.
- The building industry as a whole is unable to meet the demand for new houses never mind the repairs on defective houses.
How are you addressing your capacity issues?
- Have you got an action plan in place for 3 scenarios:
- Exceed expected targets
- Meet expected targets
- Fall short of expectations
- Are you partnering with other businesses that can assist with your overflow or help with space?
- Take pre-orders of goods or services and then contract to meet those orders.
- Use the clip on the ticket entrepreneurial approach
- Contract out, contract in and just contract.
- Virtual assistance
Use technological solutions for additional resources and capacity.
This is the first blog to look at your fitness for growth. If you want to know if you are fit to grow, read our other blogs or join the 20 week mentoring programme.
To your fitness