Many companies fail because they try an approach to business scaling that’s just too fast. Those that succeed do so by implementing specific practices initiated at the top. These lessons from the founder of The Money Source can help you do the same.
Darius Mirshahzadeh, former CEO of The Money Source (TMS), went through a difficult time trying to grow the business. He succeeded eventually, but he didn’t do it alone. Along with his partner, he used a set of principles for systemized scaling that helped the company grow to over 700 employees.
Darius Mirshahzadeh and his partner Ali Vafai started out as rivals, but in just six years, they’d grown a strong company together. The business began in retail and wholesale, then they decided to shift focus and become a national correspondent investor and servicer.
Apart from using unique scaling principles, the partners did something extra: they always asked each other how to stay ahead of the game. They realized that it’s not just about rolling through hard times – it’s also about adapting to new trends and using curiosity to explore new possibilities.
However, none of this could have happened without adopting specific core values and treating each other with respect. Here are the lessons you can take from the success of TMS.
Scaling Lessons #1 – Understand Strengths and Weaknesses (Both for Yourself and Your Business Partners)
Honesty among partners is often an undervalued trait. As Ali Vafai puts it when talking about his partner Darius:
“When it comes to a topic that requires Darius’s strengths, I back off, and he defers to me on mine.”
Knowing each other’s strengths and weaknesses helps build a strong partnership. For TMS, mutual respect is born out of trust and honesty. Ali admits:
“Behind the scenes, we do talk openly without a fear of offending each other.”
Although strengths and weaknesses can overlap, it’s always better if you and your partners can complement each other. Agreement on certain matters speeds up decision making, but it’s also good to have partners with different strengths and areas of expertise.
An atmosphere of trust and openness makes it easier to put emotions aside and let analytical thinking take over, and that’s how you can find new ways to scale your business.
Systemized Scaling Lesson #2 – Create Core Values That Your Employees Can Fall in Love With
It’s very important to avoid micromanaging your employees. Strict rules and policies against taking risks can stifle growth and innovation. Employees value the liberty to be creative. They also respond better to objective feedback.
As a leader, it’s your job to promote core values inside your company so you can scale it faster, but this is sometimes difficult to do. It’s critical to first find employees who can work well with each other, similar to how business partners need to complement each other, but also share similar traits.
For motivating employees, performance-based rewards are hallmarks of great companies. Furthermore, taking a personal approach when talking with employees works well, too. This helps people feel like they’re part of a family and that their opinions are valued. This tends to increase productivity, which helps with business scaling.
Systemized Scaling Lesson #3 – “Us vs. Them” Slows Down Implementation
The “us vs. them” mentality can come in many forms, like between on-site and remote teams, for example, and a lack of communication between employees and leadership often triggers it.
There’s a big risk of coworkers not communicating well – with each other or their team leaders. Take, for instance, employees who are in different time zones. It can be difficult to get all of them up to speed at the same time or collaborate on projects.
You need to overcome this difficulty. It’s difficult to scale a company fast and go from managing a handful of employees to hundreds, but it’s not impossible.
To fight back against these challenges, you can implement new practices, such as inviting conversation and allocating time for coworkers to meet. Encourage projects among people who don’t often work together. Get all your employees to know, help, and trust each other.
Systemized Scaling Lesson #4 – Nothing Can Grow Without a Foundation
A simplified business model can do a LOT for your scaling plans, but it’s not always easy to stick to just one – that’s why critical thinking and getting everyone on the same page is essential.
This helps create a strong foundation of values, and a strong foundation lets you offer goods and services in an efficient, consistent manner… Growing steadily as a result. Growing too quickly can weaken your foundation and spiral your company out of control.
You want to offer your customers a universal experience… Consistency in your delivery ensures customer loyalty. Scaling a business is not just about acquiring new clients, it’s about getting repeat business. Consistency builds a good reputation, and simple business models make consistency easier… Plus, they’re easier to scale systematically.
Systemized Scaling Lesson #5 – Create a Strategic Marketing Plan
There are standard marketing plans, and then there are strategic marketing plans. A standard, simple plan contains very little – just setting a revenue goal and a few ways to reach it.
If you want to grow, you’re going to need more than that. First, set a clear vision for your company. Second, do a monthly breakdown of all the actions needed to get there. Use realistic numbers, and take into account whether you have a seasonal business.
Based on previous years, think about what needs to happen each month for you to hit your revenue goals. Take everything into account, from generating leads to making deals to coming up with proposals.
Keep track of all the variables that could affect your revenue or prevent you from reaching your goals. Always reverse engineer your marketing plan to get all the facts. With this approach, you can identify potential problems and solutions, and be prepared for anything that comes your way.
It takes a lot to get systemized scaling down to an art form, but it is possible… if you understand how to create a thorough business model and plan strategically.
Adopt a culture of open communication within your company and bridge the gaps between employees and leaders. Build a strong foundation to give your business a chance to grow, and wrap all of that information into a plan that will guide you into the future.