Career Journey
Turn the Tide:
Tips to Foil Small Business Stagnation and Accelerate Growth
August 2020
Tips to Foil Small Business Stagnation and Accelerate Growth
August 2020
By Merilee Kern
A U.S. Bureau of Labor Statistics report revealed nearly half of all small businesses fail within the first four years of their existence. While there are many proven causes, including owner incompetence, inexperience, fraud and neglect, one killer culprit often flies under the radar: stagnation. Indeed, losing momentum - with respect to revenues, market share and other mission critical indicators - is one sure fire sign that an entrepreneurial endeavor is in grave trouble.
The good news is that a stagnated organization can take a number of proactive tactical measures - many fairly easily instituted - to turn the tide, spur change and, in doing so, kick the growth engine back into gear.
Knowing she would have some insights, I connected with self-professed “Bosspreneur” Becky A. Davis of MVPWork, LLC. Not surprisingly, she offered a great number of strategies that entrepreneurs can employ right now to spark short-term progress.
Becky shares eight concepts that resonate with me because they’re each highly effective within the framework of a long-term strategy for sustained growth.
Be a Better “Bosspreneur”:
An entrepreneur is defined as a person who takes a risk to start a business or enterprise to make money. Bosspreneurs do the same, but they also have written and quantifiable targets, goals and actions. They don’t merely focus on staff and other external variables - they focus on self-improvement, and they believe that they can and should learn from others. Bosspreneurs accept responsibility. They are open to change, and they want others to succeed. They consistently break down barriers. Bosspreneurs do not just own a business, they own their behavior.
Promote Ingenuity with Immediate Impacts:
Ask employees, customers, partners and vendors this question: “What three things would you change right now that would impact the company this month or quarter?” No group is insignificant – each can offer valuable advice, opinions and perspective. Hold internal weekly brainstorming sessions with staffers for creating and collaborating on innovative ideas such as streamlining processes for speed and efficiency. Create a task force to document, analyze, prioritize and take tactical action on those ideas you feel will have an immediate impact on the business, and segue to those where the benefit will be realized long-term. When things stabilize, continue to do this once a month or quarter at the very least.
Be a Stickler for Staff Accountability:
As a business owner, it’s important to continually challenge your team and hold them accountable for activities resulting in measurable growth. Once you have set clear expectations and have provided training and coaching, step back and give staffers the autonomy needed to perform the clearly articulated duties expected of them. Don’t micromanage, but do require regular progress reports so you can recalibrate as needed and remain proactive rather than reactive. If performance does not improve, it's time for an accountability conversation. Have this conversation sooner rather than later, as the longer you take to expect improvement, the worse the situation will become for you and your team.
Identify and Resolve Conflicts:
Conflicts, whether they are between personnel, staff, vendors - or even within the supply chain - can directly affect your company’s bottom line. Work to resolve those inevitable workplace conflicts so the company can come out even stronger on the other side. Do not forget: As the leader, everyone is watching what you do or don’t do. Taking a “wait and see” approach or hoping a situation will just pass is not a solution; rather, it is more likely to foster a toxic work environment, often perpetuated by low performers, which can cause high performers to seek employment elsewhere.
Play All Positions:
Miami Heat coach, Erik Spoelstra, gave the iconic LeBron James the nickname “1-through-5” for his ability to play and defend all five positions on the court.
It is just as important for small business owners to be able to adjust and flex to their employee’s thinking styles to inspire an all-star performance from the team. Small business owners should be able to be similarly named “1-through-4” based on these four critical thinking styles:
In order to get the best productivity and create high performance teams and third party relationships, you need to be able to play all four of these communicating styles based on how others naturally think, rather than how you naturally think.
Give Praise and Rewards, Especially During Hard Times:
When things are not going as well as expected, go out of your way to recognize and reward successes – even small ones - which can reinvigorate key players and the team at large, fostering a renewed fighting spirit. Rewards don't have to cost money. It could be an extended lunch hour, a thank you email or a word of encouragement. It’s easy to get nervous when things are tough, but if you increase your communication during those tough times, it will ease some of the tension. Always give credit where it’s due. Create a formal monthly honors or rewards program that recognizes employees company-wide and at all levels for developing ideas and solutions that have a tangible beneficial impact on the bottom line.
Invest in Top Talent:
According to research compiled from 3,800 small business leaders and conducted by Salesforce.com, growing small businesses prioritize talent retention at a much higher rate than large enterprise. As a business owner, surround yourself with the smartest and best talent possible to propel your company to the next level. Invest the time to find those superstars - even in a part-time consultative or contract capacity - if you can’t afford to hire them on full-time. The ideation, energy and optimism that comes from high-caliber staffers can be contagious and give the entire company a boost.
Pay It Forward:
As a business owner, take an active role in the community through pro bono work on boards and committees. Such activities often proffer new networking opportunities, enhance the image of the company and its figurehead, and drive good publicity - all of which can reinvigorate revenues. Sometimes when you pull yourself away from the business and serve someone else, it helps to clear your mind. Giving always has a way of coming back to you.
If your company is stuck in a rut, don't wait another day to change course with the hope that somehow things will turn around without serious intervention. Taking immediate action and implementing growth acceleration strategies, such as those above, will reinvigorate your business, strengthen your team and help ensure your business maintains forward momentum.
A U.S. Bureau of Labor Statistics report revealed nearly half of all small businesses fail within the first four years of their existence. While there are many proven causes, including owner incompetence, inexperience, fraud and neglect, one killer culprit often flies under the radar: stagnation. Indeed, losing momentum - with respect to revenues, market share and other mission critical indicators - is one sure fire sign that an entrepreneurial endeavor is in grave trouble.
The good news is that a stagnated organization can take a number of proactive tactical measures - many fairly easily instituted - to turn the tide, spur change and, in doing so, kick the growth engine back into gear.
Knowing she would have some insights, I connected with self-professed “Bosspreneur” Becky A. Davis of MVPWork, LLC. Not surprisingly, she offered a great number of strategies that entrepreneurs can employ right now to spark short-term progress.
Becky shares eight concepts that resonate with me because they’re each highly effective within the framework of a long-term strategy for sustained growth.
Be a Better “Bosspreneur”:
An entrepreneur is defined as a person who takes a risk to start a business or enterprise to make money. Bosspreneurs do the same, but they also have written and quantifiable targets, goals and actions. They don’t merely focus on staff and other external variables - they focus on self-improvement, and they believe that they can and should learn from others. Bosspreneurs accept responsibility. They are open to change, and they want others to succeed. They consistently break down barriers. Bosspreneurs do not just own a business, they own their behavior.
Promote Ingenuity with Immediate Impacts:
Ask employees, customers, partners and vendors this question: “What three things would you change right now that would impact the company this month or quarter?” No group is insignificant – each can offer valuable advice, opinions and perspective. Hold internal weekly brainstorming sessions with staffers for creating and collaborating on innovative ideas such as streamlining processes for speed and efficiency. Create a task force to document, analyze, prioritize and take tactical action on those ideas you feel will have an immediate impact on the business, and segue to those where the benefit will be realized long-term. When things stabilize, continue to do this once a month or quarter at the very least.
Be a Stickler for Staff Accountability:
As a business owner, it’s important to continually challenge your team and hold them accountable for activities resulting in measurable growth. Once you have set clear expectations and have provided training and coaching, step back and give staffers the autonomy needed to perform the clearly articulated duties expected of them. Don’t micromanage, but do require regular progress reports so you can recalibrate as needed and remain proactive rather than reactive. If performance does not improve, it's time for an accountability conversation. Have this conversation sooner rather than later, as the longer you take to expect improvement, the worse the situation will become for you and your team.
Identify and Resolve Conflicts:
Conflicts, whether they are between personnel, staff, vendors - or even within the supply chain - can directly affect your company’s bottom line. Work to resolve those inevitable workplace conflicts so the company can come out even stronger on the other side. Do not forget: As the leader, everyone is watching what you do or don’t do. Taking a “wait and see” approach or hoping a situation will just pass is not a solution; rather, it is more likely to foster a toxic work environment, often perpetuated by low performers, which can cause high performers to seek employment elsewhere.
Play All Positions:
Miami Heat coach, Erik Spoelstra, gave the iconic LeBron James the nickname “1-through-5” for his ability to play and defend all five positions on the court.
It is just as important for small business owners to be able to adjust and flex to their employee’s thinking styles to inspire an all-star performance from the team. Small business owners should be able to be similarly named “1-through-4” based on these four critical thinking styles:
- The Analyzer: Seeks the facts without the emotion.
- The Organizer: Has a detail-oriented, structured and procedures-oriented style.
- The Synthesizer: Sees the “big picture,” is imaginative, and excels in holistic thinking.
- The Harmonizer: Is an empathetic, emotional and expressive person who always seeks ways for people to get along.
In order to get the best productivity and create high performance teams and third party relationships, you need to be able to play all four of these communicating styles based on how others naturally think, rather than how you naturally think.
Give Praise and Rewards, Especially During Hard Times:
When things are not going as well as expected, go out of your way to recognize and reward successes – even small ones - which can reinvigorate key players and the team at large, fostering a renewed fighting spirit. Rewards don't have to cost money. It could be an extended lunch hour, a thank you email or a word of encouragement. It’s easy to get nervous when things are tough, but if you increase your communication during those tough times, it will ease some of the tension. Always give credit where it’s due. Create a formal monthly honors or rewards program that recognizes employees company-wide and at all levels for developing ideas and solutions that have a tangible beneficial impact on the bottom line.
Invest in Top Talent:
According to research compiled from 3,800 small business leaders and conducted by Salesforce.com, growing small businesses prioritize talent retention at a much higher rate than large enterprise. As a business owner, surround yourself with the smartest and best talent possible to propel your company to the next level. Invest the time to find those superstars - even in a part-time consultative or contract capacity - if you can’t afford to hire them on full-time. The ideation, energy and optimism that comes from high-caliber staffers can be contagious and give the entire company a boost.
Pay It Forward:
As a business owner, take an active role in the community through pro bono work on boards and committees. Such activities often proffer new networking opportunities, enhance the image of the company and its figurehead, and drive good publicity - all of which can reinvigorate revenues. Sometimes when you pull yourself away from the business and serve someone else, it helps to clear your mind. Giving always has a way of coming back to you.
If your company is stuck in a rut, don't wait another day to change course with the hope that somehow things will turn around without serious intervention. Taking immediate action and implementing growth acceleration strategies, such as those above, will reinvigorate your business, strengthen your team and help ensure your business maintains forward momentum.
Merilee Kern, MBA, is a Forbes Business Council Member, founder of The LuxeList.com and Host of the Savvy Living TV Show. She is an internationally-regarded brand analyst, strategist, futurist and marketplace trends pundit who reports on industry change makers, movers, shakers and innovators across all B2C and B2B categories. Connect with her on Instagram, Twitter and Facebook @LuxeListReports.
