Do you ever dream of owning a business that makes money even while you sleep or go on vacation? That’s a dream a lot of business owners have.
Unfortunately it’s not as easy as just getting more clients. There are in fact four major issues you have to deal with before you can create that business that runs without you.
What is a scalable business?
scalability must be defined relative to market size and marketshare projections. A company only needs to be scalable for anticipated revenue. But any enterprise can grow to a point where it becomes non-scalable. At any point in time, a company is only scalable to a certain revenue volume, beyond which each incremental revenue dollar begins to cost more. Once a company reaches that point, the scalability of the enterprise must be addressed directly — through investment in operations, new technologies, new distribution, etc.
Also, relative scalability is also a source of tremendous structural competitive market advantage. A company which is more scalable relative to it’s competitors will continue to outperform it’s competitors until something alters their relative scalability.
Decide on your career goal
A smart CEO understands the inherent value of goal setting in steering a growing business in the right direction.
Types of visionary goals usually fall within four general areas: service, social, profit, or growth:
Service – Goals related to improving customer service satisfaction or customer retention.
Social – Goals that focus on giving back to the community, through philanthropy or volunteer organizations, for example.
Profit – Goals set to increase profits by a certain percentage.
Growth – Goals related to the expansion of the company, through new employees, for instance.
Narrow the service you offer
Once you’ve decided that you are going to grow a business that can run without you, your first major decision as leader of this new company is to streamline what you do.
Let’ say you provide SEO services and for a typical client and you did everything from on-page optimization to building back links to PPC advertising. Well, if you want to create a scalable business, you need to decide which services you are going to focus on.
This may sound counter-intuitive, so let me explain.
A scalable business has a set of procedures that any competent person could follow. It’s easier to document and provide these procedures when what you offer is limited.
Train the Juniors
You can start hiring junior people after the services you offer. Its not necessary that you hire talent people for the procedure you offer, you only have to hire competent people and passionate team.
Yes, you have to now manage these people, but it’s better to think of yourself as a leader, a leader who sets a tone within the whole company. This tone, involves planning, predictability, control and culture.
Then offcourse its time to mange these people, but let think it yourself as a leader, a leader who tone within the whole company. This tone based on these pillars planning, predictability, control and culture.
Work on Closing Deals
Try thinking of closing as something you are doing every moment throughout the conversation. Great marketers don’t think much about closing at all.
“The deal is actually closed before the deal happens. Courting and building relationships over time are the only guarantees of succeeding in closing a deal. And that can take years.
“Be the best listener you can. Hear the other guy’s pain; what can you do to solve it? And if there’s pleasure you can add to his equation, focus on that.
“Tricks aren’t good: If you need them, you’re not in position to close anyway. Create true value. That’s what will help you sell faster at the price you want.”