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Scale Your Business: Move Down to Move Up

Here’s why you can’t scale your business and delegate like a BOSS.

How do I scale my business? It’s the most common question small business owners ask, whether they’re in landscaping, plumbing, or blogging. Are you like most owners and operators, smashing your head into the brick wall of working too hard instead of scaling your business the smart way? There are two main reasons you have not scaled and are stuck with as a J.O.B. instead of a BUSINESS Asset. Check out these tips and tricks for small business owners looking to scale.

Cash Flow

The lack of cash and inability to make payroll is the number one pain point for small businesses. And worry about it can dominate your calendar and brain space. I remember that overwhelming weight on my chest when I woke at 4 am on Friday morning wondering how I was going to cover my employees’ paychecks. What a sick and lonely feeling. That was no way to live.

So I started a multi-week cash flow projector and trained my team how to sell and collect down payments on high margin services. Only then did we begin to dig out of the hole.

Make a list of all the monthly expenses in your business. Don’t forget hidden costs such as depreciation, shrinkage, insurance, taxes, turn-over, interest charges, repair costs, warranties, and more! Then only take on work that covers those expenses and develop systems that generate more cash flow. Part of why Wal-Mart is able to expand so quickly is because they “use” their vendors’ money to finance the growth, collecting money at the Point of Sale and paying vendors net 60 days and longer. 

Delegation and Accountability

The second reason you can’t scale your business is you have not learned how to hire, train, delegate, and hold your people accountable. 

If you are a small business owner, you like to work and work hard.  Your life motto has been, “If it’s gonna get done, it’s up to me.” I have struggled to delegate because I wanted the job done right for the customer. I didn’t trust my staff. I found myself selling, producing in the field, collecting and doing all the paperwork. So what was I paying all these people for?

Move Down to Move Up

I’m building my dream team in my business using my Move Down to Move Up Strategy to Scale Small Businesses.

We created an Org Chart for what our business will look like 10 years from today. Then we filled in the chart with all the current staff. This left us with some empty boxes. So now we move down to the open box in the org chart, work that position, document every single detail of that position until you have the resources and training completely ready to hire and move up! As an owner, I will move down to each empty box, work the position, document and only recruit and hire when the origination is ready. That’s when I’m ready to start the hiring process.

Finally, I will not make a job offer until I know I find the right person to fill the box! I’ll know they’re right because I have invested my blood, sweat, and tears into planning and hiring for each position. 

Invest In Training

Getting good people is the first step, but then you must train your team to do the kind of job you would do yourself. Here’s how I did it. First, I documented everything I do, including the why and the how. Then I taught that to my team. Commit to investing in your people and you will be able to trust them more each day.

Where will I find the time for that? you may be wondering. Luckily, it doesn’t have to take much more time than you’re already spending doing everything on your own. Record your thoughts while driving to share with your team. Record your screen when you’re working on key tasks. Produce training manuals using the templates provided by Microsoft Powerpoint or Google Slides. Finally, always bring newer team members along when meeting with customers or coaching employees. They’ll learn so much by watching you.

Scale Your Business

Once you’ve put these strategies in place, you can scale your business like a boss. You’ll have the right people doing the right jobs at the right time. You’ll be working smarter because you’re able to delegate tasks to your amazing team. They’ll be able to bring in the right amount of revenue. And at the end of the day, you’ll be able to sign off on payroll without a second thought and focus on where you want to go next.

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