Scaling your Small Business
As a small business owner, scaling your business is an important milestone. You want to see your business grow and go to the next level. But many entrepreneurs find it difficult to make the switch from running a small business to leading a larger enterprise.
In an article for Harvard Business Review, author John Frei identifies four common obstacles entrepreneurs face when scaling their businesses. He notes that most entrepreneurs struggle with making the switch to executive mode earlier in the process than many people realize. He emphasizes the importance of developing the right skill set, including self-discipline, listening to others, and seeking input from others. Most importantly, entrepreneurs need to make the company’s health and welfare their top concern, even if it doesn’t come naturally to them.
So what are the four obstacles Frei identifies that entrepreneurs must overcome to scale their businesses? The first is the fear of letting go of control. Many entrepreneurs become “control freaks” and are reluctant to delegate or cede control of any part of their business. But as a business grows, it’s important to relinquish some of that control and allow others to do parts of the work.
The second obstacle is a resistance to change. As the business grows, the owner must be willing to adapt to new challenges and weed out nonperformers. Entrepreneurs need to stay on top of changes in the industry, customer needs, and technology, and be willing to pivot if necessary.
The third obstacle is a lack of financial knowledge. As the business grows, it’s important for entrepreneurs to understand the financial aspects of their business and make informed decisions.
The last obstacle is letting go of the “startup mentality.” Many entrepreneurs hold on to the startup mentality, which can lead to a lack of accountability and an inability to plan for the future. Entrepreneurs must be willing to let go of the startup mentality and embrace a long-term strategy.
Scaling your business can be a daunting task, but with the right approach and attitude, it’s possible. By being willing to let go of control, embracing change, understanding the financial aspects of the business, and letting go of the startup mentality, entrepreneurs can scale their businesses successfully. The good news is that you aren’t alone on this journey! It can be more cost effective to utilize companies like ourselves to help build your business without the costs of traditional employees.
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