Diary of a Business Founder...

Lesson# 2

Lesson #2: The Importance of taking a "birds eye view" of the business

Title: The Second Most Valuable Lesson I Learned Running a High-Growth Company: The Power of a Bird's Eye View

In the exhilarating world of entrepreneurship, it's easy to get caught up in the thrill of driving sales and expanding your business. As someone who came from a sales background, I was no stranger to the adrenaline rush of closing deals and growing revenue rapidly. However, what I quickly learned was that while sales are crucial, they're only one piece of the puzzle.

The second most valuable lesson I learned while running a high-growth company was the importance of taking a consistent "bird's eye view" approach to the business. This means stepping back from the day-to-day operations and assessing the business as a whole to ensure that all aspects are running as effectively as possible.

When I reflect on my journey, one particular moment stands out vividly. Despite our company's profitability and accolades, we found ourselves on the brink of disaster shortly after receiving recognition in the Sunday Times awards. The culprit? Poor credit control management.

As a sales-driven entrepreneur, I was focused on driving revenue and managing sales activities. However, I neglected to pay sufficient attention to other critical areas of the business, such as accounting, reporting, and credit control. It wasn't until I found myself sitting across from a perplexed bank manager, trying to justify why significant sums of money were tied up in overdue invoices, that the gravity of the situation hit me. So despite being highly profitable we nearly ran out of cash, in fact had this incident occurred just 5 months later (2008 Credit Crunch) the bank would have pulled the plug.

That pivotal moment served as a wake-up call, prompting me to adopt a broader view to our operations. I realized that to sustain our growth and ensure long-term success, I needed to widen my perspective and address areas beyond sales.

Embracing this mindset involved stepping out of my comfort zone and acquiring new skills. I dove headfirst into learning about accounting principles, mastering the intricacies of financial reporting, and implementing robust credit control measures. Additionally, I recognized the importance of effective fund-raising strategies to support our expansion plans without jeopardizing cash flow.

Taking a holistic view of the business enabled me to identify inefficiencies, mitigate risks, and seize opportunities for improvement. By aligning sales efforts with sound financial management practices, we were able to optimize cash flow, minimize bad debt, and strengthen our relationships with stakeholders.

Moreover, learning to closely manage the whole operation empowered me to make informed strategic decisions that propelled our company forward. Whether it was diversifying revenue streams, optimizing resource allocation, or expanding into new markets, I approached each initiative with a comprehensive understanding of its impact on the business as a whole.

Today, as I reflect on our journey, I am grateful for the invaluable lesson that adversity taught me. While sales will always be the lifeblood of any business, it's the ability to see the bigger picture and manage all facets of operations that ultimately determines success.

To fellow entrepreneurs embarking on their own high-growth journeys, I offer this advice: Never underestimate the power of a bird's eye view. Embrace the challenge of expanding your skill set, and prioritize holistic management practices that encompass all aspects of your business. By doing so, you'll not only weather the storms of uncertainty but soar to new heights of achievement and prosperity.