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The Five Critical Challenges You Must Focus On In Stage 2 — Ramp Up

Do You Know The Five Critical Challenges
You Must Focus On In Stage 2 — Ramp Up?

You aren’t sure when it happened. But without really being aware of it, you just crossed over into the second stage of growth with 11 to 19 employees. You may have noticed things were getting more difficult to manage. It was getting harder and harder to keep up with the flow of work.

In the transition from Stage 1 to Stage 2, you just experienced a Flood Zone, one of two ‘chaos zones’ that companies move through as they grow. A Flood Zone requires you to bear up to an increase in the quantity of activity. Your first reaction to a Flood Zone is to add more people. Best to hold off on that idea.

Instead, as you Ramp Up in Stage 2, you need to be focused on Profit/Revenue, getting critical processes in place and avoid the trap of just ‘throwing people at your problems’.

This mistake alone has accounted for too many businesses imploding too soon. There are five critical challenges you face as a Stage 2 leader. In talking to leaders who have made it to Stage 2, they are almost completely overwhelmed.

You probably haven’t spent time thinking about ‘managers’ or shifting the responsibility of managing those people – you are not only trying to keep them on target with projects, but you are still doing everything you’ve been doing since you started your business.

The Five Critical Challenges You Must Focus On

When you get out of bed every morning, spend time organizing your day around these five activities. Make the commitment that you will address each one, at some level, every day.

Challenge #1: Hiring Quality People. 

I know I just said: Don’t throw people at your problems! It is not about hiring more people, it’s about hiring quality people. I suspect you have one or two people right now that the company has outgrown. It is time to let them go and replace them with someone to whom you can begin delegating specific tasks.

Challenge #2: Improve Sales.

You are no longer in survival mode—that was stage one. You have moved into growth mode. That’s why generating revenue through sales is so critical. Follow the money.

Challenge #3: Manage Cash Flow.

Track your cash daily, if necessary, but no less than weekly. Don’t let your expenses get ahead of you. When thinking about spending money on something, take time and ‘inquire’ as to the WHY of your decision. Ninety percent of CEOs think they make good decisions – 60% of them are a bust. This isn’t time to squander resources.

Challenge #4: Recognize the Leadership/Staff Gap.

Now, you must be talking to your staff, individually, on a weekly basis – having a real dialogue about how they are doing, what they need, how you can help them. You are looking at the beginnings of a communication chasm, that unless you begin now, you won’t be able to bridge. Talking now will produce big dividends.

Challenge #5: Limited Capital to Grow.

This is a challenge that has potentially bothered you since day one. It is the reality for companies in Stage 1 and Stage 2 who haven’t received venture funds. Consider these three questions:

  1. Have you looked at your business model?
  2. Do you have a model that creates a recurring revenue stream, passive income?
  3. Have you recently evaluated your pricing model?

Congratulation on making it to Stage 2! If you have a vision for growth beyond 19 people, now is the time to ramp up and get ready for bigger challenges in Stage 3 when you have 20 to 34 employees. A basic principle of effectively managing growth; what you don’t take care of in one stage of growth doesn’t go away–it follows you to the next stage when there is more complexity and a new set of challenges.

Get a Free Growth Stage Strategy Session With Me.

Click Here to the Complete the Strategy Questionnaire.

Then, we will schedule our call.

u aren’t sure when it happened. But without really being aware of it,
you just crossed over into the second stage of growth with 11 to 19 employees.

You may have noticed things were getting more difficult to manage.

It was getting harder and harder to keep up with the flow of work.

In the transition from Stage 1 to Stage 2, you just experienced a Flood Zone,
one of two ‘chaos zones’ that companies move through as they grow.

A Flood Zone requires you to bear up to an increase in the quantity of activity.

Your first reaction to a Flood Zone is to add more people. Best to hold off on that idea.

Instead, as you Ramp Up in Stage 2, you need to be focused on Profit/Revenue,
getting critical processes in place and avoid the trap of just ‘throwing people at your problems’.

This mistake alone has accounted for too many businesses imploding too soon. There are five critical challenges you face as a Stage 2 leader. In talking to leaders who have made it to Stage 2, they are almost completely overwhelmed.

You probably haven’t spent time thinking about ‘managers’ or shifting the
responsibility of managing those people – you are not only trying to
keep them on target with projects, but you are still doing everything
you’ve been doing since you started your business.

The Five Critical Challenges You Must Focus On

When you get out of bed every morning, spend time organizing your day
around these five activities.

Make the commitment that you will address each one, at some level, every day.

Challenge #1: Hiring Quality People. 

I know I just said: Don’t throw people at your problems! It is not about hiring more people,
it’s about hiring quality people.

I suspect you have one or two people right now that the company has outgrown.

It is time to let them go and replace them with someone to whom you can begin delegating specific tasks.

Challenge #2: Improve Sales.

You are no longer in survival mode—that was stage one.

You have moved into growth mode.

That’s why generating revenue through sales is so critical. Follow the money.

Challenge #3: Manage Cash Flow.

Track your cash daily, if necessary, but no less than weekly. Don’t let your expenses get ahead of you. When thinking about spending money on something, take time and ‘inquire’ as to the WHY of your decision. Ninety percent of CEOs think they make good decisions – 60% of them are a bust. This isn’t time to squander resources.

Challenge #4: Recognize the Leadership/Staff Gap.

Now, you must be talking to your staff, individually, on a weekly basis –
having a real dialogue about how they are doing, what they need,
how you can help them. |

You are looking at the beginnings of a communication chasm,
that unless you begin now, you won’t be able to bridge.

Talking now will produce big dividends.

Challenge #5: Limited Capital to Grow.

This is a challenge that has potentially bothered you since day one.

It is the reality for companies in Stage 1 and Stage 2 who haven’t received venture funds.

Consider these three questions:

  1. Have you looked at your business model?
  2. Do you have a model that creates a recurring revenue stream, passive income?
  3. Have you recently evaluated your pricing model?

Congratulation on making it to Stage 2!

If you have a vision for growth beyond 19 people, now is the time to ramp up and
get ready for bigger challenges in Stage 3 when you have 20 to 34 employees.

A basic principle of effectively managing growth; what you don’t take care of in
one stage of growth doesn’t go away–it follows you to the next stage when
there is more complexity and a new set of challenges.

Get a Free Growth Stage Strategy Session With Me.

Click Here to the Complete the Strategy Questionnaire.

Then, we will schedule our call.

In Category: Tips for Transformation
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