Over the last couple of weeks, I’ve talked about how 4% of businesses don’t break a million. Less than fewer, break 10 million. Today, we’re going to talk about how that happens and the sabotage that many business owners create.
There are three phases of a business; start-up, scale-up, and screw-up. You start a company and things are going well, but you really haven’t systemized the organization the way you should. And again, I’ll remind you, systems stand for, saving yourself stress, time, energy, and money. You haven’t created your standard operated procedures, your culture and your communication are not tight, but yet what do you do? You open additional locations. Unfortunately, if you’re not fully systemized and organized in running the first one right, you’re just going to replicate the same things in your additional location.
Next, you’re scaling up. You’re growing. You’re doing more revenue. You may or may not be really checking your bottom line. You might not be checking your books the way you should. And all of a sudden, somewhere down the road, one store is not doing well, and the other store is doing well, and you start taking money from the performing location to put in the non-performing location, and your cash flow begins to drain. And you realize at some point, you grew too fast, without systemizing the process and that’s where you end up screwing it up.
You start a business, you scale it up, you don’t do it the right way, and then in the end, you screw it up. And that’s why many businesses don’t break a million or stay in business. And more yet, why only less than 1% break 10 million, or why 75% of businesses aren’t able to sell? They started up, they scaled up, but they haven’t systemized it, and then they just end up screwing it up.
I like to talk about a box of rice. It gives you the instructions right on the side of the box, exactly what to do. Take a two-quart saucepan, two cups of water, a teaspoon of salt, a tablespoon of butter or margarine. Bring it to a boil, pour the rice in, 20 minutes, simmer. Perfect rice. But in business, there’s no perfect recipe. There are no instructions on the side of the box.
However, I represent an organization called Action Coach. We are 30 years in the business of coaching business owners all around the world. We have three systems of how to run a business and do it right. So, if you can’t rate yourself an 8, 9, or 10 on a scale of 1 to 10 in your business being systemized, having the right culture, having a tight team that you feel you could sell this business tomorrow, walk away and make a ton of money, no matter where you are in this world, you need to be talking to someone on our team. Actually, you just need to be talking to any of the qualified coaches or consultants in the world to guide you in making the right decisions to systematize your business so, your business doesn’t become one of the above statistics.
COACH MICHAEL DILL is an Award-Winning Certified Business Coach, global speaker, and published author. He is a proud Action Coach Franchise partner as well as the President of Power & Ice Wealth Creation a strategic leadership company that works with business owners, leaders, teams, and entrepreneurs to both develop a systematized and structured organization while accelerating their mindset, efficiencies, and effectiveness to grow both personally and professionally to achieve extraordinary results. He brings more than 40 years of business and entrepreneurial experience in his leadership, team training, and mentoring practice. Businesscoachmichaeldill.com