I’ve learned many lessons in fifty years working with businesses of all sizes. One of those lessons is that businesses grow and fail based on how they manage the explosive events and constant erosion that affect growth.
- Explosions are those events that come on suddenly—the 2008 meltdown.
- Erosion is the only constant in business—and in life—change.
Explosions and erosion create both positive and negative results. How these changes affect your business depends on how you, as owner/CEO react.
A friend started building a spec house in early 2008. The bank-appraised value of the house was $1.2MM. The collapse happened. THUD! The value of the house plummeted, my friend filed bankruptcy, the house sold—short sale—for $620k.
Another friend identified a need for a service to amateur athletic leagues, developed an online app to service the need, and raised $500k to quickly launch a new business. BOOM! The business is now operating in three states.
An insurance agent was successful selling group health insurance for over a decade. However, she failed to heed the dramatic changes occurring in that industry and found her client base, revenue, and income shrinking. THUD! She had to struggle to identify a new market, and learn a new product portfolio.
A pizza store owner with a superior product experienced stagnant revenue growth. He looked carefully at his store’s appearance, the makeup of the neighborhood, and the clientele he was attracting. He decided to change—in measured stages—the layout and ordering process at the store, to add multiple TVs, expand his offering of craft beer, and promote specific sports events. BOOM! Revenue is growing.
YOU CAN’T DO THIS ALONE…
In each of the BOOM cases, the owner/CEO had a board advisors. The THUDs came when the owner/CEO relied exclusively on his or her own judgement and haphazard advice from paid advisors, casual business associates, friends, and family.
As an owner/CEO, you need a board of advisors you can trust as a mastermind you can rely on. 2017 is going to be an explosive year…don’t THUD. If you want to grow and prosper, create or become a member of a board of advisors—cheaper and better than Vistage, TAB, or any other consultant/coach led group.
Founder/CEO Profit Pilots, Inc.
Visit http://ProfitPilots.us and get ready to make 2017 BOOM!