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How do you take your company to the next level? Use key strategies that support success. Find out what one successful owner has to say about growth practices.
The way to grow a business from revenue in the thousands to the millions is to rely on solid business practices. Iinterviewed Beth Beck, owner of Club Fit, a group of health clubs in the suburbs of New York City that grew its revenue from $114,000 in 1981 to more than $24 million today. Here are the best practices she used to achieve her company's growth.
1. Join industry associations
Learn what's going on in your industry and take advantage of tools, resources, and other opportunities through your associations. Don't be afraid to ask questions of association members; most are gladly willing to share information.
2. Create steady cash flow
Beck was able to do this by transforming her business model from pay-for-services to monthly dues. Look for ways that keep customers coming back regularly. For instance, where appropriate adopt an automatic renewal billed to customers' credit cards (with the option to opt out at any time).
3. Establish a banking relationship
Access to capital is paramount to business growth. Cultivate a personal relationship with your business banker.
4. Put business systems in place
Create a foundation for repeatable success by devising systems and practices that enable easy duplication. Think about the McDonald's model, which systemizes every aspect of the franchise so it can be replicated flawlessly.
5. Know what's going on every day
Owners can easily become sidetracked with "important" matters, losing sight of daily operations. Stay in touch by hands-on activities or by creating a reporting system to inform you of what happens every day.
6. Give managers authority to manage
Hire the best and then let them do what they know how to do.
7. Listen to your customers
Don't assume you know what your customers want or like; ask them. Use focus groups, secret shopper programs, and questionnaires to find out what you're doing right and what you're doing wrong.
8. Value your employees and listen to them
Value your employees and treat them as company assets rather than an additional cost of doing business. Carefully consider the benefits that your staff values and try to offer them if possible. Pay bonuses to employees so they know they are an important part of the company's growth and success.
Create feedback channels where employees can offer suggestions that will be carefully considered by owners. Hold events, such as company picnics and holiday parties, in which employees can freely converse with owners on a casual level; this fosters employee feedback.
9. Delegate what you like least
An owner only has so many hours in the day. Do what you do best and let others handle the rest.
10. Be prepared
Plan, train, and test your safety and security plans. For instance, in the health club sector, CPR training for staff is essential. In other companies, preparedness may relate to protecting computer data or avoiding injury by machinery. Determine your vulnerabilities so you can craft preparedness plans. No only will this reflect well on employees and customers, but it will also lower your insurance costs.
Listen to Build Your Business Radio, with your host Barbara Weltman, every Monday from 4 pm to 5 pm ET--Live, On Demand 24/7, or via iTunes Podcast.
