Under the Bar: Your Business on GH

TAGS: your business on gh, Elitefts Legacy Log, under the bar, dave tate

elitefts™ Sunday edition

Your Business on GH

A growing business, while a good thing, can be hard to deal with and if not kept in-check can spin out of control.

I never saw a business fail from too many sales, but I saw many die because they think one month or quarter of great sales means they'll stay that way forever. Many feel this is a true sign of success and sales will only go up, up and up. Rarely is this the case.

A business becomes more solid based on the number of storms they weathered to get where they are - not by too many sales.

If you find your business is "taking off" make a mental note to...

1. Step back and look at things from 10,000 feet.

There's a good chance if your business is blowing up, your systems are about to break. If you get too wrapped up in the sales success, you won't see the cracks that are forming in the dam.

2. Look for outside help.

This is good time to reinvest in legal and accounting services to limit the surprises that await down the road. Hiring other consultants to look over your operations will also help to avoid more costly mistakes in the future.

3. Fire customers.

If you ever had a job, you know what I mean when I say there are some customers who can suck the life out of you – or in this case your business. As a start-up, we need all the sales we can get. But as you move forward, you have to get rid of those customers that drain your energy, capital and staff. While in the short-term it seems like you have to keep them, they actually are costing you three times more than they bring in.

4. Change the way you work.

Now is the time to hire and delegate so you can focus on the strategic work of the business. If you want the business to succeed, you'll need to let go of much of the work you're currently doing. This is also a good time to upgrade your staff. This can be in the form of more education or replacement.

5. Build up your reserves.

Just because you have more money doesn't mean you need to spend it or pay yourself more. Make sure you have reserves to get you through the hard times. It's hard to think of these times when you are riding a growth spurt, but trust me, they will come.

These are just a few things out of many to consider.

The best advice I can give is to avoid growth spurts in the first place. If you think you are riding one, find a way to kill it or slow it down, but this is for another day.

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