Scaling Your Business
The 5 Ps

Congratulations! You finally started that business you’ve always dreamed of. Now it’s time for the real challenge – to scale your business for growth.

How do you do this?

Scaling your business for growth requires planning. It means setting the stage to enable and support growth in your company. There’s a concrete formula for scaling any business, and it involves these 5 Ps:

  1. PURPOSE
  2. PURCHASE
  3. PROCESS
  4. PEOPLE
  5. PASSION
Purpose

Purpose is the single most important factor for success in scaling your business.

To achieve success, you must know where you want to go. This is your vision. You must have a long-term vision for your company.

Your Purpose includes your dreams, values, what you hope to accomplish, and what you want for your employees and community. Many businesses overlook this and don’t have a strong purpose. But to achieve success, you must know where you’re going and weave this throughout your organization.

Purchase

Acquisition and consolidation is a primary way to scale your business.

It’s an incredibly efficient way to do this. It can turn a firm making $2 Million and into a $5 Million a year business. This is all Warren Buffet does. He buys distressed businesses like GEICO. You must look at acquisitions as a way to grow your business. Whether you acquire a company, or one acquires yours, this is a great way to increase your cash flow as long as you have the ability to execute your purpose.

Process

You need great people to scale your business.

Look at people who work for you as human assets. Work to gain their trust. You must always be recruiting, bringing the best people on board, and staying in touch with them. The number-one reason people leave a job is because of their boss. Don’t be that boss. Be the one who motivates them to achieve your purpose.

You must also have systems in place for recruiting and keeping the right people on board. Recruit the best people from your competition, talk to your employees about possible recruits, have your HR person find out who the great people are in your industry and get them to work for you. Along with their skills make sure anyone you hire has good attitude and character.

People

Define the processes that bring the best ROI for your business. Develop your standard operating procedures (SOPs) and put these processes in place. Next, measure them with Key Performance Indicators (KPIs).

Measure your employees’ performance on a daily basis to make sure they’re hitting their benchmarks. Ensure that your employees understand how they’re being measured. They must also understand how what they do contributes to ROI.

As the CEO you must stay out of the day-to-day management. This is what your managers are for. Remember, your job is to develop the purpose and instill it in your people. Entrepreneurs aren’t good with processes. Hire a COO to do this. Get out of the mindset that you can’t afford this. There are many resources available. Then use the ROI >SOP>KPI Process to scale your business for growth.

People Part 2

How to find good people and what to do?

Measure your employees’ performance on a daily basis to make sure they’re hitting their benchmarks. Ensure that your employees understand how they’re being measured. They must also understand how what they do contributes to ROI.

As the CEO you must stay out of the day-to-day management. This is what your managers are for. Remember, your job is to develop the purpose and instill it in your people. Entrepreneurs aren’t good with processes. Hire a COO to do this. Get out of the mindset that you can’t afford this. There are many resources available. Then use the ROI >SOP>KPI Process to scale your business for growth.

Passion

Your passion, whatever it is, should carry over to your life and the lives of your employees.

Help your employees understand your passion. Make them part of it. Here’s a good example: Chick-fil-A CEO Jacquelin Gotto was passionate about doing her job well and brought a strong work ethic to Chick-fil-A. She focused on having a more positive outlook on life and carried this with her into the corporate culture of Chick-fil-A. Each employee exhibits this same passion. That’s why their customers love to eat there. It makes them feel happy!

In Summary: All 5 P’s Tie-In Together

Much of scaling your business comes with transition. The transition from owner-operator, owner-operator to a team, owner operator to a team with a manager, and so on transitions into: owner-operator > team > manager > to a number of managers > employees.

As the owner-operator, your job is to make your Purpose a reality. Your job is to lay out the purpose, bring in the cash, create jobs, develop the process with help from your managers, let the managers hire people to do the work and instill your passion throughout your corporate culture. Remember, you shouldn’t be the one doing the work, your people should. They need you for your vision and the company’s Purpose to keep scaling your business for growth.

And, remember, all 5 P’s tie in together:

  1. PURPOSE
  2. PURCHASE
  3. PROCESS
  4. PEOPLE
  5. PASSION

Once you have all 5 in place, you can scale your business for growth. But don’t stop here. Use this formula to start and scale other new companies. If you do, you may just be the next Warren Buffet!