Are you seeing slowed or stagnated growth in your company recently? Not to worry. NSCA executive director Chuck Wilson has some good news and great tips for you in this week’s video question of the week.
One NSCA member wrote in, “We had aggressive growth goals, but we find ourselves stuck at $10 million for years. What do we do to get over that hump?”
Wilson examines the idea that bigger isn’t always better. “Why do you want to be bigger?” he asks. “Might the profitability be the same in your company at $10 million as it would be at $20 million? The incremental revenue might result in less profit.”
For example, he says, a $10MM company might have around 36 employees. At $20MM, a company might need around 50 employees. This will present new challenges and change the scope of the company. You won’t just be bigger, you will have to reorganize, rethink management, and in the end you might look and feel like an entire different company, not just a bigger one.
Consider why you want to be bigger, he advises, saying that $10 million is a “sweet spot” for integration companies.
But, if you’re absolutely sure you want to grow, Wilson has some advice. Plan some time to map out the next three to five years in your company. There’s usually a reason a company isn’t growing that you will be able to pinpoint. Find the reason you’re not growing, and make a strategic plan to change that.
Ask yourself the following five questions:
- Are you making an appropriate investment in your company? The proper investment is important for growing the right technology, processes, and people.
- How should you grow? Look into an acquisition vs. organic growth.
- Do you have the right marketplace? Is your marketplace conducive to growth?
- Are you selling products that have come down in price? It may be that even if you’re selling more today than you were a year ago, you are bringing in the same amount of revenue because of lower product prices.
- What differentiates you from the competition? Lead with innovation.
According to this executive director, the bottom line is simple. If you have the right people, processes, and technology, you will be able to grow.
Want to hear more? Watch Chuck Wilson’s video question of the week here:
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