“We have always done it that way”
This phrase seems harmless.
Yet, these 7 words and the resistance behind them could cost your business dearly.
Are you familiar with the “Valleys of Death”?
The metaphor “Valleys of Death” refer to scalability and growth challenges businesses face. Revenue plateaus and backward slides companies encounter as they strive for the first $1M, surpassing $1M, then reaching 10M, and again when achieving 50+M.
From the inset chart you can see, that as a percentage, only .4% of US companies reach $10 million or greater. In other words, out of 28,000,000 companies, only roughly 112,000 ever reach the $10 million revenue mark.
What keeps companies from a steady upward march to hit these goals? A recurring theme we hear in family business often is, “We have always done it that way.”
This statement is an indicator of resistance and it shows up most often in two areas. Let’s take a closer look at each.
It is hard to look at something that you have created and say, “we need to change this”’ especially if it has worked up to this point. The truth is what got your business off the ground to $1M, will not take you to $5M in revenue and beyond. The only thing constant in a growing business is change.
Or what if 80% of business revenue is tied to personal relationships with the G1 owner? What happens if he/she doesn’t/can’t come to work one day? This very scenario frequently plays out in the “valleys” between new revenue peaks.
Processes or Systems
Owners often start out wearing all that hats. In the beginning, you could track your 6-8 clients in your head. Today, you have a sales team servicing dozens, perhaps hundreds, of prospects and clients. Keeping sales notes in your head will not work anymore.
Or maybe how you advertised your products or services in your local paper with great ROI. Today, your territory is 4x bigger than your local papers reach, and the area it does cover has experienced a readership drop of 60%.
Changing the landscape
The speed at which we do business has accelerated 10X in the last decade, and that change continues to gain momentum every year. Are you doing what is needed to keep pace and asking, “is doing it this way still the best way for the company and our customers?”
Celebrate what got you here and embrace what will be needed to take the business to the next level.
The Valleys of Death do not have to be on your business path. Let’s uncover what could be holding the business back from incredible growth and scaling to the next revenue benchmark.
Remember… to the remain the same is to coast, and coasting only leads downhill.
Schedule a 30-minute discovery call with me. I would love to help your family business to even greater success.
BLOG | PEOPLE / TALENT
The Golden 5% is the full expression of our ability, multiplied by our maximum possible effort, multiplied by our full contribution of heart. It is the performance equivalent of what we offer in a deeply loving relationship – the absolute best of ourselves. And yet, we rarely give it or reliably inspire the giving of it by others in organizations. Why?Read More
BLOG | FAMILY DYNAMICS / GOVERNANCE
Part of the challenge in a family business, or any business for that matter, is that the world does not stop and allow you to pursue your strategy in a nice, orderly fashion. Whether it is internal or external, issues pop up throughout the course of the day in any business. So how do you prevent issues from derailing the company’s progress? Here are a few ideas for minimizing their occurrence and how to deal with them effectively when they do happen.Read More
BLOG | FAMILY DYNAMICS / GOVERNANCE
In working with many families and their businesses, I’ve found that every family has its own unique DNA, behaviors, values, and traditions. Yet, there is ONE theme that made all the families seem very similar...and that is the tension, angst, and, at times, a complete unwillingness to eat a meal together due to a lack of clarity around making business decisions for the family business. How do I help families clear the air of business-related issues so they can share a meal together as a family without tension, drama and strife? Governance and routine.Read More
At Compass Point, we make it easy to get insights, training, tools, and articles straight to your inbox and help family business owners and their team continue to grow, learn, and lead.