Business Growth Strategy – Harnessing the Power of the Business TriangleJan 24, 2023
By Darren Cherry
Do any of these pain points sound familiar to you?
- The more I grow, the harder I work, and I can’t sustain it.
- My quality is slipping, and I’m drowning in customer complaints
- The majority of my growth is new services to the same customers
- I have as many administrative processes as I have customers
- My revenue is growing, but my cash flow is declining
- It takes nearly a year before new employees add value
As a business owner, you often take on direct responsibilities for the critical functions of Business Development, Operations, and Administration. Understandably, you would want to directly manage these core areas of the business, given their high level of connectedness.
In the early stages of the business, this approach is manageable. However, you become the bottleneck as the business grows or desires to grow. The bottleneck stems from one of the following challenges:
Time Tradeoff: Every hour you spend in one area, such as administration, is an hour you cannot spend on critical areas, such as business development.
Focus: It is common to administer “quick short-term” solutions to keep things moving instead of longer-term systematic improvements. Or even worse, miss early signs of changes in the market or customer needs.
Expertise: It is fair to say that as an owner, you are unlikely to possess “mastery level” skills in all three areas. Most of us only have mastery in one of the areas, and we struggle through the other areas.
In business, similar to sports, you are only as strong as your weakest link. However, in business, our measures of success are not always as obvious. In fact, we, in a very unconscious way, throttle back our company’s performance to the pace of our weakest link. We get by with this approach until we start to grow. With the new growth, our failure points accelerate, and we begin to experience some of the above pain points.
A possible solution to this common challenge is harnessing the power of the business triangle. The business triangle is a model that incorporates three key components of a successful business: operations, business development, and Administration. By focusing on these three areas, you can create a well-rounded and effective strategy for growth and success. Here’s a closer look at each component of the business triangle:
Operations refer to the day-to-day processes and systems that keep your business running smoothly. This includes everything from production and logistics to customer service and quality control. In order to succeed, it is essential that your operations are efficient, effective, and aligned with your overall business goals.
Business Development involves identifying and pursuing opportunities for growth and expansion. This can include finding new customers, developing new products or services, and entering new markets. By focusing on business development, you can create a sustainable and profitable future for your business.
Administration encompasses your business’s administrative and support functions, such as finance, HR, and legal. While these areas may not be directly related to production or sales, they are critical to the overall success of your business. You can create a solid foundation for growth and success by properly managing your administration.
So, how can you leverage the power of the business triangle to drive success for your small business? Here are a few tips:
- Determine the areas where you add the most significant value and directly lead that function
- Fill the remaining two seats with individuals with the experience you need at your desired growth level (not today’s needs).
- Set clear goals and objectives for each component of the triangle. Whether it’s increasing efficiency in your operations, expanding into new markets through business development, or streamlining your administration processes, having specific and measurable goals will help you stay focused and track your progress.
- Monitor and review regularly. By regularly reviewing the performance of each component of the business triangle, you can identify areas that need improvement and make necessary adjustments. This can help you stay on track and make sure you are making progress toward your goals.
In short, the business triangle is a powerful model that can help you create a well-rounded and effective strategy for growth and success. If you feel your business is struggling to grow successfully, let’s start a conversation to change the outcome.
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