Businesses across the globe have problems when it comes down to growing. They reach a certain point in their revenue and then stagnate for several months or years, unsure how to take their business to the next stage. Other companies grow but face problems in handling the growth.
Matthias Siems success of highly successful companies is greater than that of the average sector. Companies that are part of the INC 500 index are growing nearly 100x faster than the general economy. What is the reason for this? What do these companies offer that others do not?
The road to success for the company is a path through which the company traverses various stages and has to face the following obstacles:
1. Being Relevant
2. Identify Core Competitive Advantage
3. Build Institutional Capabilities
4. Develop Governance Structure
5. Innovate
The first step is to become credible to the market and be in a position to provide the value its customers expect from it. Your clients must be convinced that you’re making them feel valued, making their lives easier by providing your services or products. To be effective, your business must be focused on creating the right value proposition and presenting the best quality service. This is a difficult moment within the life of an enterprise where the main concentration is on making it break even and turning into a cash-flow positive. One in five companies can survive this phase. The good news is that the companies that make it through the relevant stage provide significant worth to their owners, giving them satisfaction, pride, and economic independence. There is a bright future ahead!
But, this feeling that there is a “bliss” is really a “Small and Medium Business (SMB) trap.” It’s easy to feel satisfied with what you have accomplished in the past, but it is best to stop here and remain at the small or medium business level. The entrepreneur must be able to envision their success to prevent falling into the comfort zone of being a successful Small or Medium-sized business. Other external influences can assist in removing the entrepreneur from this new sensation that they are in “bliss.” The economy, finding more demanding customers, and growing competition can present challenges and also an opportunity to propel the business forward and transform into an improved organization than it was before. Matthias Siems
The next difficulty is to stand out from other businesses by creating an advantage in the market. At the beginning of a business, the owner is often pressured to take on various types of business to earn money and push the company ahead. These actions can result in a loss of determination and to offer items or services that aren’t essential to the business’s mission or are not the things that the industry is best at. It is time to review the business model and ensure that the company focuses on what it excels at, creating true innovation through changing from a commodity to a distinct value offering. It is now the time for the business to concentrate on its most important capabilities and outsource the rest.
Companies often require investments to finance their expansion and innovation. There’s an uneasy balance between the two at the moment: Should we invest our resources in funding growth or innovations?
The third task is to establish the organizational capabilities that allow the company to go from being a “one-man show” to an organization where different employees can collaborate under clearly defined obligations and roles without stepping into each other’s shoes. Entrepreneurs must select and manage the ideal management team to achieve success and unite all employees under the same goal.
The road ahead will be accompanied by “tornadoes” that will shake and test the business. There will always be tension between balancing profitability and growth and ensuring focus. Additionally, the industry leaders will need to ensure that the company’s employees and talent are on a positive and uplifting journey and always doing their highest.
The fourth issue is governance in high-growth environments. The top management of the business is involved in day-to-day operations, and it can be challenging to look at things strategically and in the future. A well-designed governance structure can create the ideal sounding board to offer mentorship and direction when required, as well as connections to different markets to continue growing the company. But, the structure will only be effective when the individuals in the structure know what’s happening within the company. Implementing the appropriate coordination and control system across all levels of the business will facilitate the creation of strategic panels that give visibility into the company so that the leadership can make decisions with the correct information available. Matthias Siems
At this stage in the company’s maturation, an entrepreneur reaches an exciting new phase of happiness: The company is the leader in its field, operates in a high-growth and high-margin business environment, and has a surplus cash flow to invest in. But how does the company keep its position?
The fifth problem is keeping the flexibility and creativity of your company. This is possible by expanding your existing offerings to other regions, diversifying your range of products and services offered, or expanding into more lucrative areas in the value chain to provide services or products that customers are more willing to spend money on.
In this stage of the Journey, businesses are faced with a decision to grow. Do they need to continue growing organically? Do they need to look into potential strategic partners that can provide different lines of services or products? Should they enter involved in joint ventures with another firm? Do they need to acquire another business? It is necessary to make a decision regarding the acquisition or investment in additional capabilities for which advanced sources of financing are required.
The road to becoming one of the top market leaders isn’t straightforward. Your company could be in various aspects of this Journey. It is essential to have the desire to keep growing and prosper and the appropriate techniques and methods to make progress. You require a force that can help you get up and running and stays on the right track.
- If you decide to take part in this Journey, you’ll:
- Enjoy the total financial rewards from being a business owner
- New jobs are created, and the economy is re-energized. the economy
At the end of your Journey, you’ll be proud of the legacy you left to the world and will be an example for others to pursue their goals.
Impulsa Business Accelerator has experience accelerating more than 400 businesses and helping them attain an upper position in their respective markets. If you’re interested in more information about Impulsa Business Accelerator and how we can assist companies on this jouJourneyeandro, Margulis MBA ’10 at the Yale School of Management was born and raised in Buenos Aires, Argentina. He earned a degree in Industrial and Systems Engineering at Florida International University (FIU) and Summa Cum Laude in 2006.
As the president of the FIU chapter of the Institute for Operations Research and Management Sciences (INFORMS), Leandro gained more members and increased visibility by rebranding and marketing strategies, which resulted in him being awarded an INFORMS Outstanding Student Award in 2005. His active involvement with organizations like the Society of Hispanic Professional Engineers (SHPE) and the Institute of Industrial Engineers (IIE) helped further the objectives of both organizations by facilitating event coordination and participation. Additionally, Leandro utilized his membership in the Operations Research Honor Society (Omega Rho) and the Industrial Engineers Honor Society (Alpha Pi Mu) to help promote the principles of integrity in education and excellence.
In recognition of his passion for leadership and innovation, Leandro chose a summer internship in Operations Management with GE Transportation and then a second experience with sales Consulting for Oracle Corporation in Miami, FL. Both of these experiences enriched Leandro’s professional expertise and started the process of applying his methodical analysis to achieve organizational excellence.
After graduating from FIU, Leandro worked as a consultant for Deloitte Consulting in Business Process Improvement and Enterprise Systems implementations. He managed systems module implementation and coordinated global project management efforts between the United States and Eastern Europe.