Owning and operating a business is hard work. But if you’re like most entrepreneurs, the payoff is worth it – especially when you have a thriving business.
So how do you make sure your business continues growing? Of course, there’s no one-size-fits-all answer, but we have several tips based on what we’ve learned over the years at Predictable Profits.
Too many business owners have a “grow at all costs” mindset. When you adopt this philosophy, you often don’t last long.
According to a Kauffman Foundation study on the companies that make the Inc 5000 fastest-growing companies list, 66% of these organizations are disadvantageously sold, go out of business, or shrink in size within 5-8 years. This often happens due to a “growth at all costs” mindset.
To have a business that keeps growing and thrives for years (even during periods of recession), you must build processes for sustainability, predictability, and robustness into your organization.
This post looks at how you can build your business with these items in mind.
Sustainability: Business Growth Done Right
The first step to business growth is ensuring sustainability. What does this mean?
Simply put, sustainable business growth can be maintained without compromising your organization’s future well-being.
In other words, you must ensure that growth is done right at this stage. Then, through momentum and constant optimization, you can perform key activities without using too many resources as your company continues its upward trajectory.
Building a company that produces consistent and sustainable growth requires you to maintain 70-80% of your days working on income-producing activities.
This builds momentum, which allows you to capitalize on quick and easy wins to fuel more gains.
You can then keep optimizing your processes to maximize your efforts.
For more on how you should use momentum to get your business growing, check out our related article, “How to Scale Your Business With Less Effort.”
Predictability: Systems Allow You To Scale
The next step is to focus on predictability.
Predictable business growth is defined as having the ability to generate steady, consistent results month over month, year over year. To do this, you need repeatable systems and processes.
Predictability is confidently saying, “I know this system works because I’ve tested it, and it works time and again.”
To grow, every business needs two types of predictability: organizational predictability and financial predictability.
Organizational predictability is about the systems and processes that allow your business to run like a well-oiled machine. This means having clarity around roles and responsibilities, as well as clear expectations for deliverables.
Financial predictability is about having systems in place for generating consistent revenue. This means having a diversified mix of methods for creating cashflow, so you can continue to invest in growth. Having a pricing strategy that allows you to scale and maximize your profits is also helpful.
Building these types of predictability into your business gives you a foundation for sustainable growth for years to come.
Remember: developing business systems is a critical part of being a successful entrepreneur. Read more about systems in this related piece, “Business Systems: How to Create a Business that Works For You.”
Robustness: Future-Proof Your Business
Last but not least, you need to build robustness into your business.
A robust business is one that can withstand changes and challenges. Now, this doesn’t mean that you won’t experience problems. It’s just that a robust business can adapt and even thrive in the face of challenges.
At this point, you built a strong foundation with constant optimization and by putting the right systems in place. You also took steps to diversify your income streams.
Now, you need a company culture that constantly asks questions to create innovation. This leads to businesses that are always evolving.
You create this type of culture by hiring the right people — skilled individuals who share your values and vision.
In an environment where creativity and innovation are encouraged, you build a sense of ownership among your team, ensuring everyone feels invested in the company’s success.
Sustainability, predictability, and robustness correspond to the hidden profit principles for exponential business growth. For more on these, check out our three-part series on Business Growth Secrets:
To ensure sustainable business growth, focus on building a scalable, predictable, and robust foundation.
- A scalable business can handle an increasing amount of work or demand without compromising quality or efficiency.
- A predictable business generates consistent revenue and cash flow, and can adapt while still maintaining control.
- A robust business can withstand changes and challenges (and even thrive).
- You can strengthen these foundations by optimizing your business, diversifying your income streams, and creating a culture of innovation.
A Final Word on How to Keep Your Business Growing for Years to Come
Remember, sustainable business growth doesn’t happen overnight. It’s the result of years of hard work, planning, and execution.
But when you focus on building a scalable, predictable, and robust foundation for your business, you’re well on your way to achieving long-term success.
If you’re looking for more advice on how to grow your business, check out “The Predictable Profits Guide To Growing Your Business.”
And if you have questions, don’t hesitate to reach out.- we’re always happy to help!
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