Continuing the theme of Fear, on this episode James and Megan discuss a fear that is faced mainly by solopreneurs and small family businesses, but applies to any small business that is growing into the next level.
Our Kryptonite today: The Fear of Growing Beyond Myself!
Why do we fear growth?:
- Growth comes in many forms. Growing profits isn’t very scary and is mostly fun.
- But other aspects of growth can be scary. Things like hiring your first employees and handling payroll, or leasing new office space or equipment. Even reinvesting profits can be scary based on the need to generate new income to make it pay off.
- Even the idea of growing beyond a solo business can be scary and keep you from reaching the full potential of your business.
What is growth and is it necessary?:
- Growth can be viewed as increasing your numbers. In business, that may be revenue, gross or net profit, production, customer base, locations, and more.
- A business is an organization, even if it’s only one person. And organizations behave like organisms. They have to change and grow based on their environment, or risk extinction.
- A business with constant revenue is actually stagnant, like a pond with no movement in the water. Eventually, algae will grow…pond scum! Inflation will eat the earnings of a business with constant revenue, so we have to find ways of creating new growth and new opportunities, even if you aren’t aiming for the Fortune 500.
- Don’t get too comfortable in your business.
How do we handle growing beyond what we already are?:
- Accept the need for change and growth. Be open to the possibilities instead of resisting every effort to grow.
- It’s important to have an overall strategy. You want your business to thrive, not just survive. How many small businesses in small towns have been there forever, but are doing exactly the same thing? That business owner simply created a job, not a true business. Think bigger.
- What can be eliminated? Often the most productive and easiest changes in business are the things we stop doing.
- Understand that you aren’t the first to do it. Find others who have been through the changes you’re entering into. You have friends and business contacts who can guide you, and there are coaches and consultants that can help you do it right and fast.
- Listener Question:
- Do I hire employees or use independent contractors? – Eric Kulikowski, DareToBeAmazing.com
- Examine your business. Is it growing or not? Ask yourself why and really understand the answer.
- Name one thing you want/need to add to your business in the next year for it to grow. [If you don’t have an overall strategy, start there.]
- Name one thing you must end in your business in the next year for it to grow.