4 things you MUST get right to really scale a business.
There are more, these 4 are extremely important.
1 People
You need to get the right people, working on the right things, with the right tools, incentivized in the right way.
2. Strategy
You must have the correct strategy, one that you can execute and which utilizes your strengths and capabilities while protecting your weakness. You have to develop and play a strategy that is unique to you.
3. Execution
There must be a system or operating system in place with a focus on execution and growth. This includes metrics, communication, cadence, and many other aspects.
4. Cash
You need financial controls on expenses and cash flow, criterial for investing, cash cycle management, and an appetite for healthy risk while avoiding the rest.
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Sounds like you want to go through a 3
Part step to get ready for the next steps.
Process is not only systems and standards, but about reducing risk and isssues. In other words, you don’t want it feeling like it’s duct taped together and might fall apart in 🚀
@StrongpointRich@jasoncoxnc@girdley@WilsonCompanies 1. Is called process mapping. This writing down what you do now, who does it, how they do it, how long it takes, and what needs to be o be done first (dependencies).
This is a pain because no progress is made, but you have to start somewhere.
Based on dependencies, possible parallel work, cost structures and capabilities, and a few you other things, you combine steps, eliminate, outsource, and re order them.
“What’s the best way to do this with 100x more volume, without making a mistake?”
1. lower costs and raise margins 2. expand the business 3. develop capabilities 4. grow market share
Here is how it works....
There is a great cycle that really led my supply chain companies for over 10 years
- next level of customer requires service which requires new investment
- new investment increases our capabilities
- new capabilities allow us to capture new types of customers
- repeat
The problem with this cycle is the investment needed. This can often be quite high for a small business.
This shows up in business models and strategy all the time.
Trying to get all customers who might buy your product is a sure way to get almost none of them.
Starting with customer motives can help isolate a winning strategy
If the customer you want to serve has many options, doesn't care about quality, and has the means to acquire market information (know all prices), you are serving a cost-focused customer
This means...
... your marketing is focused on how you are cheaper than elsewhere.
Your operational strategy is to run as lean as possible.
Your sourcing and procurement are looking for consolidation and discounts wherever possible.