Based on Australian business statistics, it appears that only 7 per cent of all Australian businesses break through $2M in sales turnover. Why so few? asks Jenny Stilwell, strategy advisor and business mentor.

It is important to note when viewing these figures that a large proportion of these entities will never have more than two or three employees by design. However, there is still a portion of businesses doing less than $2M in sales in the Australian market who are focused on growth, but not sure how to go about it.

Barriers to growth

There are a few big challenges stopping companies from experiencing continued growth, summarised by three barriers:

• Loss of control: when the business isn’t structured in a way that allows the business owner to feel in control over what is happening.
• Lack of operational support: the team is not fully accountable for supporting the business and the CEO, leaving pressure on the owner to help and manage a growing team.
• Fragmented focus: the founder’s focus is constantly changing rather than being clear on the company’s strategic direction and priorities for growth.

Loss of control

When a business owner is feeling out of control, it means they don’t have the controls to know and be able to manage what is happening in their business, and they don’t have the right support.

The only way to move through this barrier to growth is to take stock, consolidate, simplify the complexity in the business and make it more operationally streamlined. This usually requires help because, at this point, the business owner cannot lift their head from the day-to-day detail to see the bigger picture.

In the early days of growth, the owner of the business will be involved in every single part of production, customer management, marketing, sales and operations. At some point, this becomes untenable.

Growth brings complexity. There are more customers, more employees, more complex accounts and far more day-to-day business activity to be managed. At some point, this can seem like an insurmountable barrier to founders who don’t know how to address this complexity, and they struggle to expand beyond their own limitations.

The burden of trying to manage all the increasing complexity is overwhelming, which can stop many businesses from being capable of growing much further.

Lack of operational support

This is essentially the lack of experienced resources in the business, preventing the owner from being able to step up and lead.  A team that is capable of running the business day-to-day will enable you to step back and up to focus on your role as CEO and leader. Getting your A-Team in place will enable you to make the shift from ‘doer’ to ‘leader’.

You have to let go. Letting go is all about trust. It is your job as leader to make sure you have the right key people in your business and that they are equipped to perform their own roles. You need to trust the processes you have in place, with checks and balances that will help you to trust that things will still work, and work well, without your constant intervention.

This step of becoming a leader is significant. Taking the leap from operational manager to leader is necessary if you are to build a successful company. Failure to get through this barrier will inhibit further growth.

You need focus to grow

Fragmented focus gives rise to decisions that are constantly changing. If you don’t have a clear vision and direction for your business, you will struggle to grow the right way. Without focus, you may grow in a haphazard way, not be as profitable as you want to be, end up in the wrong place serving a market you don’t really want to be in, have way too many products or not enough services, or simply have a lot of resources being very busy without producing optimal results.

It isn’t always easy to choose the right direction for your company or know how to make the right strategic decisions. However, unless you can move past this to take a more strategic and considered path to growth, you may not be able to upscale.

When your mind is overwhelmed with the day-to-day, you do not have the capacity to take an objective look into your business and the market in which you operate. Without a clear focus and a plan for how to get there, and without the resources to support that drive forward, you will struggle to break out of your current situation.

The challenges will stop your company from expanding any further if you don’t know how to address them. However, once you have made the necessary shifts to allow you to break through these three key barriers, your business growth will expand at a far faster rate than previously and you will be headed toward membership of ‘the 7% Club’.

Want more? Get our newsletter delivered straight to your inbox! Follow Kochie’s Business Builders on Facebook, Twitter, Instagram, and LinkedIn.

Now read this

https://www.kochiesbusinessbuilders.com.au/the-5-things-i-learned-from-creating-a-multi-million-dollar-business-in-12-months/