For many entrepreneurs, success is defined by growth. But runaway growth can create problems that become spectacular failures.
Becoming a corporate business is difficult but not impossible. What is needed is a realistic business strategy, a committed team and determined patience that allows you recover from setbacks.
Expansion is a step that every company has to take carefully because it involves a change in work habits and can affect your internal and external relationships, not to mention your mental health.
For many companies, the change in business strategy that enables growth and standardization of processes are extremely complicated. For us at Mijo! Brands, the change from a start-up to a corporate business cost us several staff members and inevitably some customers, as well as a lot of stress, but the ultimate benefits were worth it. Now, those of us that weathered the storm of growth agree that change was inevitable: 20 families depend on our company. The ideas we had to create the business were idealistic and admirable, but we worked many days on the verge of bankruptcy.
Mijo! Brands went through a growth spurt during which our sales and the size of our team were doubling every year, while our earnings remained static, if not dipping into negative numbers. Although our brand positioned itself as a brand leader in the web environment, we suffered a hemorrhage of irreplaceable talent leading to an identity crisis that left us exhausted and adrift in the rapid expansion.
Now entering our fifth year with a more relaxed pace and better organization, Mijo! Brands shares 5 key points that allow you to control your business and maintain success through growth periods:
1. Create a scalable management model.
As your business grows you need to develop management control. A management structure will enable implementation of accountability against established parameters and ensure that the quality of your services, as well as your reputation, remains constant. Develop a profile for each position, a well-defined organizational scheme and short and long term plans to help you achieve your business goals.
2. Define a quality control system.
Determine the elements that must exist in a system of quality control and assign the responsibility for maintaining that quality to someone competent in your business.
3. Be loyal to your quality system.
It is easy to develop a quality control system but is more difficult to always adhere to it. Now that you've created a scalable management model with a defined quality control system, it is the time to make sure it runs perfectly. Do not let lack of time or urgent customers allow you to be distracted from maintaining your quality control.
4. A committed team/committing to your team
While many business owners complain about the lack of staff commitment, workers often complain about of a lack of commitment from their leaders. Consider developing a profit-sharing plan with your team. Sharing the benefits of success, and the risks and responsibilities of any failure, can trigger a significant change in the attitude of your team towards the business.
5. Check your numbers.
Simply selling more does not define your success. Achieving sales goals without measuring or understanding the efficiency of efforts to create those sales could result in misspent energy. Understanding the return on investment will help determine whether growth or a single project worth the effort and energy it requires.
Common sense and a business strategy is essential to manage the growth of your company. Unfortunately, finding examples of companies who have been victims of their own success in Vallarta does not require much research. Do not let your success becomes a double-edged sword.
Daniel Gomez is Director of Strategy Mijo! Brands
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