Like many business owners, John and his business partner Chris* had a strong desire to continue expanding theirs year on year. They had built their manufacturing business from scratch, and after ten years were achieving a turnover of £10 million, with a net profit of £1 million, but had hit a growth plateau for several years running. A plateau is that stage of a business where it has stable and profitable operations but its growth has stalled. Reaching a growth plateau tends to appear at various stages throughout the lifetime of a business, and is a clear signal that changes are overdue.
Growth plateaus are frustrating!
Even though John and Chris were enjoying a comfortable lifestyle through the proceeds from their business, they still wanted to expand further, and were frustrated with the growth plateau they had been stuck on for several years. Working more hours didn’t bring the breakthroughs they wanted, and added to their dissatisfaction. They recognised that repeating the same strategy that wasn’t working for them was never going to produce different results.
What’s your potential enhanced worth?
What was required to shift them through the growth plateau into the next level of expansion was a completely different strategy than they had been using. Their desire for that next level demonstrates that John and Chris already had within themselves the worth to achieve far more than they were currently. If their enhanced worth wasn’t there as a potential, the urge to expand wouldn’t arise, and they wouldn’t be thinking about it. It’s as if the urge comes from a creative wellspring within, and your job is to grow into being the person who achieves that expansion.
Expansion needs space
The first step of an expansionary shift is to create the space for it. John and Chris had talked about expansion and had hired a profit mentor to assist them with creating innovative growth strategies that would shift their business over the plateau. However they found they were so occupied with handling day to day business issues that they were only tinkering at the edges of the implementation plan. Their frustration multiplied; they now knew what was required for growth but just weren’t getting it into action. Their mentor pointed out to them that their worth in the vision of their expanded business was £100 million per year, and yet right now they were doing work that had a worth of £60,000 per year. Thus they had reduced their worth from £100 million to £60,000.
What they needed to do was to promote themselves out of their current roles and responsibilities, and to appoint someone with a worth of £60,000 to take over their roles of handling much of the day to day business matters.
Rinse and repeat….
Only with the additional time and freedom that doing this gave could John and Chris create and implement the detailed action plan that would shift their business beyond its growth plateau. And this won’t be the last time that they have to fire themselves from their existing roles and promote themselves to a higher position if they want to continue the expansion of their business as per their vision. Hopefully in the future they will see the growth plateau coming long before they reach it, and plan their systems and strategies accordingly.
No matter the stage of your business, from start up to mature, as the business owner you’ll need to be prepared to shift your role and promote yourself to a higher position if you want your business to continue expanding.
John and Chris* – not their real names so as to preserve their privacy.
Is your business stuck on a growth plateau? Working with a mentor like Dr Chopra, the Profit Mentor, who is an expert in innovative strategies, could shift your business to its next level. To explore the possibilities for increasing your profits and for creating winning strategies, book a Strategy Session with Dr Chopra by filling in the form http://www.angloindia.co.uk/book-your-strategy-session/