Why do two virtually identical companies achieve vastly different results? One company’s growth stalls and tops out with relatively insignificant revenue while a company with identical products and services becomes the dominant market leader?
Why? All companies start the same way. All founders believe in their products. All founders are passionate about the future of their business. Startups have tenacity. They have nothing to lose. A startup is frugal. It works to expand sales, it hustles and it looks to build cash. These companies should be congratulated for their success to that point. But how do they get to the next level?
We are not talking about factors such as a company having better salesman, a better location, or more competitive prices? Those are clearly factors which influence results. What we are addressing is what factors separate business owners and their ability to take their company to the next level? Why do so many organizations fail in achieving that next level?
Company dynamics change as an organization grows. The personal traits and mindset which got you to this point are very difficult and sometimes impossible to change. But an owner’s mentality does change, as now he subconsciously believes he has something to lose. This subconscious factor negatively impacts the business’ future.
The following 5 factors influence the ability in achieving that next level of success.
1. The single most important attribute is decisiveness and the ‘decision to act’. You must continue to do what is right for the business even if it conflicts with your personal goals in the short term. Indecision is difficult to overcome and can cripple an organization. Be prepared with the proper business tools to make intelligent decisions and avoid the common mistakes of poor decisions and the failure to act.
2. The ability to identify shifting business dynamics. Change is constant and required for ultimate success. Don’t let your competitors pass you by.
3. Vision to effectively invest in the business. The major area lacking such investment is in organizational talent; followed by technology and equipment investments. Every business must continue to invest in itself. As the organization grows, those investments become bigger. Ultimately, focused investments reap the rewards of greater financial gains.
4. Ability to ‘read the tea leaves’ of the organization. Employee feelings always change over time and ultimately can turn to resentment of an owner’s success and the start of organizational decline. Employees are critical and are the most important asset to most organizations.
5. The ability to demonstrate leadership. Conflict is inevitable as an organization grows. Your leadership skills must be developed as the organizational demands change within a growing company. Expectations of employees must be clear and organizations always struggle with developing leadership skills. Everyone wants to be involved with a winning team and your employees are critiquing your performance as a leader.
It is surely not easy to achieve continued growth. A trusted strategic partner is invaluable in keeping the organization focused and prepared to vault to the position of market leader. At Alpha Partners Consulting, we believe in your future and are prepared to contribute to your success.