one person business

Your business is growing and profitable, then BOOM, you hit a speed bump. Or you get stuck in a swamp. What happened? The bigger you grow, the tougher it can be to grow yet larger. I call this the “paradox of small business growth.”

As your company grows, you’re likely to run into three barriers at different stages of growth. Seems to me these are dang near universal!

Barrier #1. You’re a solopreneur, yet you want to grow beyond what you can handle working by yourself. But you get stuck in “the business is moi” trap.

Your growth challenge: Learn how to find good employees, then trust and manage them well.

Barrier #2. It’s you and the crew, but further growth is limited because everybody reports to you, and it’s running you ragged.

Your growth challenge: Learn how to be the CEO and entrust day-to-day operations to your skilled managers.

Barrier #3. You’re a successful, strategic CEO of your growing company, and now it’s time to move on to the next thing—sell, retire, start something else. But you’re so tied to the business, you can’t bear to turn it over to others.

Your growth challenge: Learn to let go.

I’ve been working with owners at all three levels for a lot of years. Here’s what they have in common: They have a management style that has worked very well to get them where they are. But to get to the next level—and they definitely want to get there—they must change what works. “It works, but break it anyway!” And this is very painful.

Many can’t make the leap. They decide to stay the same, and come up with very convincing explanations why further growth is not desirable for them. Alas.

There are straightforward ways to tackle these barriers. Once you see them laid out, you say, “Oh yeah, I could do that. I just need some guidance.”

This fall I’m going to offer a program that addresses each barrier. (You can only be at one barrier at a time.)  I’ll elaborate on each of these barriers in later posts.

In the meantime, I’d love some examples from the Peanut Gallery. If you read one of these and moan, “Ohh, that’s me right there you’re talking about!” let me know your story. Where do you want to go; what’s in your way?

We learn best from each other. You learn to transcend your barriers by seeing how others have done so (or even by watching them be stuck).

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Q: I’m curious if anyone has a rule of thumb on what should be spent annually by solopreneurs on marketing. Would anyone care to share their own marketing expenses? Or percent of revenue?
Maria

A: Maria
I’ll bet that not 1 out of 20 of us knows how much we spend on marketing. Three reasons:

1. Our biggest marketing cost is the value of our own time we spend on marketing, and we don’t track that, let alone assign an hourly value, or check the results for the hours we spend.

2. We don’t collect all our marketing expenses under one account called “Marketing.” Instead, we have line items for Professional Services (web design, podcasts, etc.), Advertising (display ads, google ad words), Memberships, Business Meetings, Travel, etc.

3. We don’t create marketing budgets, then track how much money and time we spend, compare budget to actual, and compare effectiveness of different marketing activities (“bang for your buck”).

“A yacht is a hole in the water you throw money into,” we’ve heard people say. I think this is the way most entrepreneurs treat marketing. “If I’ve got some money, spend it on marketing. A free evening? Go to another networking meeting.”

So I’ll be very interested to see if anyone can give a meaningful answer to your question. I hope you can prove me wrong!

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How do I grow beyond a one-person business?

August 7, 2008

Q: from JD, Consulting engineer (from LinkedIn Q&A)   A: I’ll answer your question with some questions. Use these to help you assess your growth options:   – How easy is it for you to bring in more business? Is there business out there for you to get, assuming you have the time and resources […]

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