Can Growth be a bad thing?

Yes if it is not strategically planned for. Imagine two different scenarios. Both companies are in the same business-commercial HVAC. However, this applies to almost any business.

Company A took the time to write a strategic plan, made sure that new systems were in place and working , hired additional technical and support staff, and had a marketing and sales plan in place. They also use a key performance indicator to measure productivity and know where to improve. They also knew how many hours for each technician and installer were put towards maintenance or other pre-assigned tasks and how many hours where available for service. They even had a system set up that when the hours available went below a set point to hire additional technician staff. Even the sales staff was instructed on minimum margins and job size.

Company B The owner simply wanted to grow-thinking that would solve his issues of revenue. He never used a set system, had no idea of how many hours he had available for his staff. His sales people could sell to anyone they wanted to and had a sliding margin -to ensure they got the job and commission went with the lowest one. The company did not hire any additional internal staff to deal with the increase-they figured that the current team could handle it. Had the owner asked the staff they would have said they were already over worked.

Spring then summer hit-each company picked up many new customers except company B lost clients shortly after they gained them. the owner was always having to take money from a bill because of jobs being incomplete-The owner was burned out and losing money.

Company A handled everything according to plan, the company was able to properly cope with the increase in work. The company would end up keeping most of the new customers and grow.

This happens in almost any size business and industry. It decides who will stay in business and make a great living Vs who eventually goes out.

The morale is you should never grow just to grow, but plan for it.

The other difference between the two companies is company A used a business coach, one who had been through both scenarios and knew what to expect.

A business coach might seem like an expensive investment. But if you factor in the steady increase in growth and the reduction in overall issues you will face, it is one investment that will provide a healthy Roi. For more information or to schedule a time to discuss how me and my team can help you call me at 267-623-0596 or [email protected]