Don’t grow out of business

“Strength and growth come only through continuous effort and struggle.” Napoleon Hill

The early days of a successful business hardly resemble the glitzy images of entrepreneurship.

As more clients sign on, revenue increases, but so do expenses and workload.

Knowledge-based businesses often have relatively good financial margins, but the blunder phase begins to take a toll on founders.

Experimentation from the wonder phase begins to hurt operations more than help. One-off projects, while still profitable, become more onerous.

Standard operating procedures (SOPs) control the workflow and expectations. Without SOPs, you have a ship at full sail but with no one at the rudder.

“Many businesses grow out of business rather than go out of business,” Stacey Abrams (yes, that one) and Lara Hodgkin write in “How Fast Growth Killed Our First Company.” Failing to align growth in revenue with growth in capacity (people and processes) is a recipe for failure.

Get — and keep — control of your marketing, sales, fulfillment, and financial SOPs.

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Thanks for reading this helpful message. And helpful is the key word for me. I want to ensure these messages are as helpful for you as possible, so feel free to reply with anything that didn’t make sense or any tax, business, or money question you want answered.

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Jeremy Wells, PhD, EA

💼 Helping independent knowledge workers build sellable businesses 🎙 Host JWellsCFO Show 🎙 Co-host @CPAAdvisoryShow 👨‍👩‍👧 Husband & father