If you’re a few years into your business and have got the major systems and structures down, it’s time to take it to the next level.
You need to start asking yourself how you can protect what you’ve built. You need to be aware of the pitfalls and predators of business. You need to put a plan in place for facing those pitfalls. You need to find the right people who will prepare and not just repair.
That is was the Growth Phase is all about. You’re beginning with the end in mind, staying one step ahead of what can happen to your business at all times.
However, none of us like to talk about protection. It brings up all those yucky things that can happen to businesses. We must talk about it, though, because those things are real and do happen every single day. Avoid that heartache by knowing what you’ll do when a situation arises beforehand.
Figure out how you’ll buy someone out. Talk with your insurance people about insurable interest. Have a properly drafted buy/sell agreement. Assess the risk of your business. In doing these things now, you ensure you won’t lose value in the business if things go south.
So, once you’ve covered protection, how can you really grow in this phase?
First, create 3 buckets of cash for your business: short-term, intermediate, and legacy. Don’t put all your cash in one bucket.
For example, figure out the full cost of bringing someone onto your team. When you hire an employee, make sure that they are a key player. Key players are the difference makers in your business. They are the people you trust the most. Treat them well by inventing ways to reward them. Create systems to attract and retain them, like employee benefit programs.
You must also verify everything they tell you. Have a weekly drop-in where you ask for a work in progress file from each of them, get numbers from every department, ask about HR concerns, and ask what we should do and what we should never do again.
Another important way to grow your business is to make sure you have all 3 ways of making money working for you. The first way to make money is to invest in your business. Put money into the business and it will make a profit for you. The second way to make money is to invest in other people’s businesses. This includes things like stocks. The third way to make money is to invest in real estate.
All three should be working for you. Create different funnels to build your wealth over time.
If you want to learn more about how to navigate the Growth Phase of business, check out 017: The Three Phases of Business: Growth.
