Want to build a fast-growth business? An expert explains the four aspects of your business you should be focusing on.
Business coach and consultant Jim Schleckser has spent years trying
to understand how start-up and small business CEOs budget their time.
Not surprisingly, the best CEOs--the ones that are able to grow
highly-profitable, fast-growing companies--had a lot in common.
As part of the CEO Project,
a boot camp for entrepreneurs, Schleckser advises CEOs and company
founders on the most important areas of their business to focus on. At
the core of his advice, Schleckser believes CEOs need to put the
blinders on and focus on what truly drives growth. Here are the core
components Schleckser says you should focus on.
Business Model
"Time spent on your business model
drives growth," says Schleckser. Most importantly, CEOs should aim to
increase the proportion of recurring revenue in their businesses
"Lock revenue each year," he says. "And when you decide to sell your business, you'll get higher offers."
Schleckser
also challenges CEOs to raise prices. "Pricing drives profitability,"
he says. "I recommend you go home and raise your prices 10 percent."
Lastly, CEOs need to have a product so strong, he calls it the "mafia offer," an offer your customers can't refuse.
Talent
Schleckser believes all CEOs need to add "Chief Talent Officer" to their title.
"Better players on the field means better performance," Schleckser
says. The silver lining of the recession was that plenty of talented
workers are looking for jobs--now is a good time to snatch up great
employees at a reasonable price.
"You're able to get talent now that you couldn't get years ago," he
says. "You need to be out there looking for talent all the time. Put a
few of the A-players in, it's like magic in changing the business
performance."
Process
What seperates good companies from great companies are those that are
able to differentiate their brand based on better processes. What does
that mean in practice? Schleckser advises CEOs to always being
developing new product lines, adding value to current processes,
eliminating waste, reengineering processes, and standardizing methods.
"Go the extra mile," he says. "Design processes that fulfill promises to your clients."
Leadership Approach
At the beginning of the company's lifecycle, CEOs are involved in all
aspects of the business. But as the company grows, the CEO needs to be
able to defer power to managers.
"It feels great to close a sale," says Schleckser, "but if a CEO is out selling, he's not doing his job."
The point is to foucs on the aspects that will drive future growth,
and that often means taking the CEO out of his or her comfort zone.
http://www.inc.com/eric-markowitz/what-high-growth-CEOs-do-differently.html
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