Many of the important considerations many aspiring entrepreneurs must tackle are;
- Should I start a small or large business and might I fail if I make the wrong choice?
- Will I be able to avoid many of the common pitfalls if I decide to grow my business?
- How do I maintain the enthusiasm, drive and focus in the business as it grows?
- How to select and groom the right employees to maximize business success?
Scaling Up Excellence by Robert I. Sutton and Huggy Rao, will help both beginning entrepreneurs and existing business people who wish to grow or improve their business answer these and other important questions.
The authors suggest utilizing some of the following tools and techniques to improve a business’s likelihood of success.
Imagine you’ve already succeeded or failed – Write a premortem. Create two fictional news stories. One which would be written had the business fully succeeded in its proposed endeavor and one which would be written if instead failure had occurred.
Utilizing this technique can assist in identifying potential strengths and weaknesses in proposed ideas. And it will often identify clearly what should be avoided. And the process may help overcome our natural human tendency of seeing only those answers which support our original ideas. Objectivity is an essential component to success!
New isn’t always improved and more sometimes turns out to be less – Many entrepreneurs find growing bigger does not always delivered what was originally hoped for. Consider the personal effects on you, your family and current employees. And consider carefully to ensure profits will grow along with the size of the business.
Use constraints carefully and channel rather than derail ingenuity and effort – Often business decisions are best left to those closest to the customer. Ensure that practices which create business success are maintained while allowing employees and managers enough flexibility to satisfy customer needs. And create an environment which allows new and successful practices and ideas to spread.
Get rid of the bad apples – Remove or isolate employees who bring negativity to the group. Studies have shown negativity as much as five times the power of positive reinforcement. Thus small negative influences can outweigh enormous amounts of positive energy.
These and many other valuable concepts are presented in the book. The authors provide both real life examples and supporting information to support their theories.
Randy is one of out newest SCORE mentors. He’s a private investor: independent study and investments in various businesses and industries including manufacturing, chemicals, plastics, distribution, services, retail, insurance, beverage, cable television and construction.
He’s been responsible for multi-managerial and operational functions for this restaurant grossing $1M in annual sales volume and employing 40. Developed a productive team which included numerous long-term employees. Employed a profit sharing plan assist in reward and motivate employees. Negotiated contracts, insurance coverage, leases. Maintained extremely low workmen’s compensation and insurance claims. Eventually delegated the majority of duties to a dedicated, successful management team. Click here to schedule a free appointment with Randy or another SCORE mentor.