One of the biggest barriers to scaling your business can come from misreading certain market dynamics. Depending upon where your business is in the growth cycle, the dynamics of the market can change pretty radically. Often, business leaders are often a bit out of step when it comes to the things they should be focused on.
Let’s say you have a smaller-but-growing business with revenues just north of $1 million. You’re trying to scale the business—to get to the next level. Your focus is on generating new business—right? Not necessarily. While you certainly can’t ignore finding new business, you need to be creating an infrastructure that will support new growth. And you need to be building good business and organizational habits. Why? Because the market dynamics change as you grow. The systems that work for a $1 million dollar company won’t cut it when the company hits $10 million in revenues.
The market dynamics don’t stay the same when you pass the $10 million mark, either. If you’ve scaled up your business to match the growth (a good thing), you’ve got a more complex company to run. This is where a lot of leaders get consumed with working on the internal workings of the company. And while that’s important, this is the time when they should be giving more attention to customers and the marketplace—because as the company gets bigger, competitors will become a bigger factor.
Of course a huge part of the changing market dynamics has to do with how you handle your finances. There’s a time when more of your focus needs to be on revenues. There’s a time when you need to pay closer attention to cash. And there’s a time when gross margins require more of your scrutiny. And while all are important (all the time), the dynamics of where your company is should dictate what is most important at a particular phase in your company’s growth.
How are you at reading the market dynamics for where your company is? Is it clear what you should be focused on for the particular stage you’re in? Is your business maintaining a steady pace of growth by adhering to effective processes? Or is your company being tossed around by the changing waves of market dynamics?
I’d love to help you find the focus for what you need right now!