AI and the SME

AI is no longer something “coming soon.” It’s already part of day-to-day business for many SMEs. From drafting emails to creating marketing content, it’s quietly becoming a practical tool that helps businesses run more smoothly.

In a previous article, we explored how AI can support business growth. This time, we’re focusing on something more practical: how to actually start using it in your business today.

The key point is simple. This isn’t about becoming an AI expert. It’s about making your business easier to run and easier to grow.

The Reality for Business Owners Right Now

Most business owners are stretched.

There’s too much admin, not enough time, and constant pressure to focus on sales and growth. It’s easy to spend the day reacting instead of moving the business forward.

This is where AI can make a real difference.

In our experience working with SME owners, the biggest value doesn’t come from doing anything complex. It comes from freeing up time and improving consistency in everyday tasks.

The Big Shift: From Doing Everything to Systemising Simple Tasks

Many business owners are still doing everything themselves:

  • Writing every email from scratch
  • Creating documents from a blank page
  • Repeating the same tasks every day

This is where AI changes the game.

Instead of repeating work, you can start building simple systems:

  • Templates for emails and proposals
  • Structured processes for regular tasks
  • Repeatable workflows that save time

The goal isn’t to work less. It’s to stop repeating yourself.

From Selling Time to Creating More Value

A common challenge for SMEs is that income is directly linked to time. More hours worked often means more revenue—but it also limits growth.

AI helps break that link.

It allows you to:

  • Speed up delivery
  • Improve the quality of your output
  • Create more consistent customer experiences

The result? You can produce better work in the same amount of time, which increases the value your customers see in what you do.

Where AI Makes an Immediate Difference

You don’t need to overhaul your business to see results. In most cases, the quickest wins come from everyday activities.

Saving time on admin

AI can help draft emails, create quotes, summarise meetings and prepare follow-ups—freeing up hours each week.

Improving marketing consistency

From social media posts to email campaigns and blog content, AI helps you stay visible without constantly starting from scratch.

Supporting sales activity

You can use it to draft proposals, refine messaging and follow up leads more effectively.

Better customer communication

Faster responses and clearer messaging lead to a better overall customer experience.

Doing More Without Hiring

One of the biggest shifts AI brings is the ability to grow without immediately increasing headcount.

AI can support:

  • Marketing
  • Admin
  • Content creation

In simple terms, it’s like having extra support, without the overhead.

For many SMEs, this creates breathing space to grow before making additional hires.

Common Pitfalls to Avoid

Like any tool, AI needs to be used properly.

Some common mistakes include:

  • Relying on outputs without checking them
  • Producing content that doesn’t sound like your business
  • Using too many tools at once
  • Not being clear on what problem you’re solving

The key is to stay in control. AI should support your business, not dilute it.

Practical Steps to Get Started

Getting started doesn’t need to be complicated.

  • Identify one or two areas that waste your time
  • Use AI to support what you already do
  • Test, adjust and build confidence
  • Always review outputs and keep your voice

In our experience, the businesses that get value quickly are the ones that keep things simple.

A Real Example

Alistair McLeod was working with a business owner who felt overwhelmed and constantly short on time.

By helping his client to introduce AI into his day-to-day processes, he was able to streamline admin tasks, reduce manual work and improve the quality of his output.

The result was more time to focus on clients and less time spent on repetitive tasks.

Want to Learn More?

If you’d like to explore how AI could work in your business, our podcast goes into more detail with practical examples and real-world insights.

Progress Over Perfection

You don’t need to fully understand AI to benefit from it.

Small, practical changes can make a big difference.

When we work with business owners, the biggest wins don’t come from doing something complex. They come from making everyday tasks quicker, easier and more consistent.

That’s where AI delivers real value.

Ready to Take the Next Step?

If you’re curious about where AI could make a difference in your business, we’re here to help.

Join one of our upcoming webinars or book a 1:1 advisory session. We’ll work with you to identify simple, practical ways to start using AI, so you can save time, improve consistency and support your growth.

Getting the right people on the bus

The Right People on the Bus – Driving Performance with the Right Crew

You’ve mapped the route, set the sat nav, and you’re ready to drive your business forward. Now, it’s all about getting the right people on board – and in the right seats.

But this isn’t just about hiring. It’s about building a team that aligns with your vision, values, and where your business is heading. It might mean reshaping roles, retraining loyal team members, or having difficult conversations. It’s also an opportunity to press the reset button and design your business the way it needs to be.

At this stage, it’s no longer about who’s been with you since the start or who’s always done it that way.’ It’s about what your business needs to reach its next destination. That means building your team around your strategy, not the other way around. 

Start with a clean slate

Now that your market audit has identified the real opportunities, it’s time to align them with your internal capabilities. Ask yourself: do we have the right skills, energy, and mindset to get there? If not, you’ve got two options: you can upskill or upgrade.

From this point, don’t let legacy roles or long-standing team dynamics dictate your structure. Instead, ask: If we were starting from scratch, how would we staff this business to achieve our goals? Define what success looks like in each role and build toward that.

Matt Levington, founder of Business Doctors and author of Breaking Big, calls this the 4 R strategy:

  • Release those who no longer fit your business model or values.
  • Retain the good people who align with your culture and are open to development.
  • Retrain where there’s potential but a skills gap.
  • Recruit to fill essential capability gaps.

Value and develop your people

Good people are worth keeping, but only if they align with your vision, values, and pace. Retraining and reassigning can work wonders if the attitude is right. Just make sure they feel valued and can see their future in your business.

Don’t be afraid to open the door

If someone’s holding you back or doesn’t fit the journey, you need to make a tough call. Hanging onto the wrong people is like driving with the handbrake on: frustrating, slow, and damaging over time.

Find the right talent

Finding strong candidates takes more than a LinkedIn post or a quick call to a recruiter. Matt’s advice? “Look under some rocks.” Go beyond the usual sources. Reach into networks you don’t normally tap. You want enough variety to be selective—but not so much that everyone looks the same.

Hire smart

Another golden rule from Breaking Big:

Hire juniors on potential, seniors on specifics.

Bring in younger talent with the right attitude and room to grow. But when it comes to senior hires, be precise and look for proven expertise that complements your business direction.

New talent = new energy

Bringing in fresh people can be energising, especially when they challenge your thinking. Don’t shy away from senior hires who might outshine the current team. A great leader builds a stronger team, not a safer one.

Set clear roles and accountability.

Once your team is in place, make sure every seat on the bus has a clear job description, measurable goals, and personal accountability. That’s how you stay on track and pick up speed.

Set the course clearly

Once you’ve got the right people on the bus, make sure they know where they’re going. Define roles clearly, agree on objectives, measure progress, and hold each other accountable. High-performing teams know the destination and are motivated to get there.

Final thought

It’s tempting to build a business around personalities, especially in the early days. But sustainable growth comes from structure, clarity, and purpose. Getting the right people on the bus and in the right seats is one of the most powerful things you can do as a business leader. It takes courage, clarity, and commitment. But with the right team around you, the journey ahead becomes not just achievable but exciting.

This post is part 9 of the Business Owners Handbook, a 10-part blog series designed to guide SME business owners through the essential steps for sustainable growth and success.

Ready for the next step in your journey? Explore all 10 Steps and start building a business with purpose, direction, and real momentum.

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Related Posts

Look in the rear view mirror.

Introduction – What are you really good at

Imagine you’re driving a car on a new stretch of road ahead—one filled with fresh opportunities, uncovered by your recent market audit (Step 6). But before you accelerate full throttle into that new terrain, you flick a glance into the rear‑view mirror. Why? Because knowing what’s behind you – what you’ve already built, what you’ve struggled with, what standards you’ve set, is vital if you’re going to navigate the road ahead with confidence.

In this seventh step of the Business Owner’s Handbook, we’re shifting gears and putting the spotlight on GIVES: what you’re Great at, what you can Improve, where you’re Vulnerable, your competitive Edge, and what you can Sell (or sell through your USP. By taking this comprehensive self‑inventory, you’ll be in a stronger position to deploy the opportunities you identified in your market audit.

Let’s strap in and begin the journey together.

“Where you have come from as a business can really help you understand your customers, your team and yourself. It can be painful but helpful. However, it’s in the past, it’s good to know and informative, but no one can drive forward whilst looking in the rearview mirror.

“Ask yourself, do you know where you are going? What are the milestones, and when do you need to take a break and re-fuel? Do you have someone you can trust at your side who has your interests at heart and shares the directions with you?

Starting the Engine: Check your rearview mirror

You’ve completed your market audit and scanned the horizon for new openings. Now it’s time to look back. Just as a driver glances in the rearview mirror to check what’s happening behind before making a lane change, you need to check your business’s internal capabilities before switching lanes into new markets.

Frameworks like SWOT stress pairing strengths and weaknesses with opportunities and threats. Many focus only ahead, ignoring what’s behind -‘driving with only the rearview mirror’ is risky. By adopting GIVES, you lean into that analogy and structure your inspection so you’re not blindsided by what you can’t see.

Mapping Your GIVES

Here’s how you apply GIVES.

G – What you’re Great at

Picture your vehicle’s high-performance parts: a powerful engine, responsive brakes, and sharp steering —or maybe you have the built-in comfort features that others don’t. In your business, this is your “engine”: the capabilities, culture, skills, brand equity, and systems that you already drive with.

  • Ask: What are we really good at? What gets us past the finish line quicker and smoother than most?

Being honest here helps you recognise your “fast lane” advantage.

I – What you can improve

Even the best car needs a service check now and then-tyres are a bit worn, alignment is off, and fuel efficiency is down. In business, there are always areas that need tuning: skills, processes, technology, and culture.

  • Ask: Where are we lagging? What parts of our link‑chain cause drag?

If you skip this pit stop, you risk breakdowns as you ramp up.

V – Where you’re Vulnerable

Here you’re looking at the parts of your car that might give way in a challenging condition-those older components you’ve tolerated, or hazards you’ve been ignoring.

  • Ask: What vulnerabilities do we have? Where are we exposed if conditions change or competitor pressure mounts?

Identify them, and you can either reinforce them, sideline them, or mitigate them

E – What competitive Edge do you have (your USP)

You’re still in the car metaphor: this is the aftermarket upgrade, the turbo‑charger, the smart navigation system that others don’t have. Your Edge is what elevates you above the competition.

  • Ask: What is our unique selling point? What do we offer that others can’t easily replicate?

Pinning this down ensures you know your fast lane and how to signal it to the market.

S – What you will Sell / Switch‑through (the offer built on your Edge)

Once you know your edge, the final step is to map how you’ll bring it to the market-what product, service or proposition you will roll out. Now, you determine your route forward.

  • Ask: Given our strengths, improvements, vulnerabilities, and edge-what will we bring to the market that reflects all of that?

This ‘S’ makes sure your reflection in the mirror informs your move ahead.

On the Road: Applying GIVES Step by Step

Here’s a practical sequence you can run in your business:

  1. Gather your driver and co-pilot team (leadership and key team members).
  2. Next, download our GIVES checklist here.
  3. Work through each area as follows: For G and V, analyse internal data such as customer feedback and operations metrics. For I and E, identify insights from external pressures and competitor moves.
  4. Identify and rank the top three items in each GIVES section to highlight key strengths, vulnerabilities, improvements, and edges.
  5. Develop specific action items for each area of focus. For ‘Improve’, list targeted upgrades or investments, such as skills, technology, or processes.

    For the “Vulnerable” list, mitigation or exit options.

    For “Edge,” specify the key action steps to clarify how you differentiate (in terms of brand, niche, or service model).

    For “Sell,” outline the steps to define your offer, detail the rollout process, and specify how you will communicate the offer to your audience.

  6. Establish a dashboard or Dash‑Panel that visually tracks progress on each category, keeping it accessible and scheduling regular reviews.
  7. Re-check across time: as markets move, review your positions regularly. Don’t rely on a static rearview mirror; update your assessments as conditions shift. Road‑Test Tip & Pitfall Alerts
  • Tip: Be brutally honest. If you exaggerate strengths or hide weaknesses, you’ll be driving blind.
  • Pitfall: Focusing only on opportunities ahead but not checking your internal capability is like accelerating into a tight corner without checking your brakes.
  • Tip: Clearly document your “Sell” proposition. Test it with customers or pilots. Your Edge only matters if others perceive it.
  • Pitfall: Neglecting regular review is risky. What was great yesterday may be standard tomorrow.
  • Tip: Link your GIVES review with your market audit to align internal and external perspectives.
  • Pitfall: Ignoring vulnerabilities is risky. Every business has weaknesses; denial invites trouble during change.

Crossing the Finish Line: What This Enables

By completing Step 7, you’ll achieve:

  • A clear internal map of your capabilities relative to your market opportunity.
  • A refreshed, confident sense of your competitive edge and what differentiates you.
  • A prioritised list of upgrades and mitigations to make before or as you move into new markets.
  • A sharpened offer (or range of offers) aligned with your strengths and market needs.
  • A dashboard you can use regularly to monitor “engine health” as you drive into the future. 

Conclusion

You’re now ready to shift up a gear. Step 7 isn’t about staying parked behind the metaphorical mirror. Use that mirror wisely to ensure your machine is set up correctly and ready to go. With your GIVES framework mapped out, drive into new opportunities with intent, control, and confidence.

In the next step, you’ll put your foot to the accelerator, readying your systems, teams, and processes for growth. But first, perform a quick inspection to ensure your mirrors are adjusted and that you know what you’re bringing into the journey.

To accelerate your progress, download the Rear‑View Inspection Worksheet here and schedule a complimentary health check meeting to discuss your GIVES framework with your local business advisor

This post is part 7 of the Business Owners Handbook, a 10-part blog series designed to guide SME business owners through the essential steps for sustainable growth and success.

Ready for the next step in your journey? Explore all 10 Steps and start building a business with purpose, direction, and real momentum.

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Related Posts

Driving your values, image of sunrise from rear view mirror

Step 2: Driving Your Business Values

Many would-be business owners feel the pull to start their own venture, not just because of the product or service they want to offer, but because of the kind of company they want to build. A place where people genuinely enjoy showing up every day, where the values aren’t just words on a wall, and where the culture feels right.

Even if you haven’t consciously dwelled on it, your values have likely played a role throughout your career. They’ve shaped your decisions, leadership style, and the environments you’ve gravitated toward (or avoided). If you’ve ever left a role because something didn’t feel right, chances are, there was a misalignment in values. 

Why Values Matter So Much

Values are the oxygen that runs through a business, but as teams grow and the day-to-day tasks become more demanding, it’s all too easy for that oxygen to get diluted — or even depleted. When that happens, performance often slips. People disengage. Culture drifts.

When Culture Goes Off Course

Have you ever had a Monday when a high-performing employee unexpectedly quits? Or where multiple team members seem slow, unmotivated, and late? These aren’t just performance issues — they’re often signs that your culture is out of sync.

As a business grows, the founder’s original values can fade into the background — unintentionally. The result is a slow erosion of the environment you set out to create.

So, how do you get back on track?

Back to basics —get a little selfish

That may sound counterintuitive, even wrong. After all, running a business often means prioritising everyone but yourself: your employees, your customers, and your suppliers. Many founders find themselves working long hours, paying their team well, and taking little home themselves.

But here’s the truth: a strong, aligned culture starts with you. In the early days, your vision was the guiding light. Your values shaped the decisions, the vibe, and the mission. Over time, as more people came on board and new challenges emerged, that clarity might have become diluted. It’s understandable — but it’s not irreversible.

“In order to carry a positive action, we must develop here a positive vision” Dalai Lama

Taking a moment to reconnect with your original intention — the kind of business you wanted to build, the kind of place you would want to work — is not just healthy. It’s essential.

Reclaiming clarity starts with you. This kind of “selfishness” isn’t about ego — it’s about reconnecting with your original vision and using it as a filter for every decision in the future.

Ask yourself:

What kind of business do you want to build?

Are your teams behaving with customers and suppliers in a similar way to how you did when you did that role?

What do you want this company to stand for?

What kind of people do you want to work with and serve?

When you lead with that clarity, others will follow. 

Your People: Culture Starts from Within

Employees will always take a cue from leadership, so keeping values front and centre is critical.

Ask yourself:

Are you hiring for values, not just skills?

Do your interview questions surface candidates’ core beliefs?

Do your performance reviews assess alignment with company values, and reward it?

Are your team members empowered to make decisions based on those values?

Do you model those values in your leadership?

If the team doesn’t live and breathe your values, you’ll struggle to create the kind of culture you envisioned, and retention, engagement, and performance will all suffer.

Your Customers: Shared Values Build Loyalty

Values don’t just matter internally — they also matter in your customer relationships.

Are your customers aligned with your values?

Are your sales team focused on fit or just closing any sale?

Do some customers continually push for price cuts while expecting premium service? That’s a clash of values — and a long-term threat to your sustainability.

Have you asked your customers what matters to them?

Do you measure satisfaction based on the right things that reflect your values?

For example, you might think it’s next-day delivery, but your customers might value accuracy more, because it reduces their internal workload.

And finally:

Are you rewarding your team for upholding your values, not just hitting numbers? 

Your Mission: Purpose Powers Progress

Your mission is the “why” behind it all — the purpose that unites your team and tells the world what you’re here to do.

Unlike your vision (where you’re going) and your values (how you’ll behave), your mission defines your impact: What difference do you want to make in your industry, community, or customers’ lives?

Ask yourself:

Does your mission still reflect your current ambitions?

Can every team member clearly explain your mission?

Is your mission guiding priorities, investments, and everyday actions?

A clear, authentic mission gives meaning to work. It motivates people beyond payday. And when shared openly, it attracts like-minded customers and partners who believe in the same thing.

Vision, Values, and Mission Aren't Just for Show

Vision, Values, and Mission are the backbone of any successful business. They provide direction when things get busy. They help with hiring, managing, and even letting people go. And most importantly, they help create a culture where people want to stay.

Final Thoughts: Realign, Reconnect, Reenergise

When you lose sight of your values and vision, you risk more than just a misaligned team — you invite disengagement, poor morale, and unhappy customers. That’s why it’s time to get intentional — even a little selfish. Reconnect with the vision that sparked it all. Live and breathe your values. Lead by example. Because when your purpose is clear and your people are aligned, you don’t just build culture — you build momentum, trust, and lasting success.

📘 Want to drive a successful business?

Download our free Business Owners Handbook for practical advice on how to embed your vision and values into every part of your company.

Download Now

Business Owners Guide to Business Growth

Footnote:

This post is part of the Business Owners Handbook – a 10-part blog series designed to guide SME business owners through the essential steps for sustainable growth and success.

Ready for the next step in your journey?
Explore all 10 Steps and start building a business with purpose, direction, and real momentum. 

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Related Posts

Personal Aspirations: Man at laptop with dog by his side.

Step 1: Your Business Growth Journey

Part One of our Business Owners Handbook is to figure out where you are going. Your business growth journey starts here. It’s time to stop firefighting and get inspired again. Remind yourself why you started your business in the first place and set your personal aspirations.

Like most business leaders, you probably know your business inside out, having immersed yourself in the minutiae of its day-to-day challenges for many years.

But when you are dealing with immediate operational issues daily, there is rarely a moment to step away from all the noise and activity to take stock of what’s happening in a more considered way.

Is what you are doing day-to-day working? Are you utilising your talents, know-how, and relationships effectively? Are you keeping yourself energised and happy? These are all great questions to ask yourself. After all, most people start businesses because they want to, not because they need to, and because they have been inspired by a dream or a big idea.

This article is designed to persuade you to take some time out to remind yourself why you started your business in the first place, what the positives of owning your own business are, and to pause and think about where you would like your business to be.

“Our aspirations are what drive us to do our best. Being honest with ourselves and identifying what we’d like to improve can lead to personal growth and new opportunities we wouldn’t have reached otherwise.” Effective Goal Setting – Forbes.

Many of us lose sight of our personal goals when we continuously focus on achieving business objectives rather than our own.

My wife is constantly reminding me, ‘What’s the point of climbing a mountain if you don’t stop on the way up, turn around, and enjoy the view? ‘

Therefore, in this respect, it’s time to take a step back and focus on your personal aspirations.

Your business is an incredible resource for achieving these goals – use it to your advantage.

“If you always do what you’ve always done, you’ll always get what you’ve always got.” Henry Ford.

With this in mind, I wanted to share some of my insights to help you aim high and realise your dreams.

Your personal aspirations will affect your business

Mountain Climbing:Man on top of cliff.

Be as creative as you want when it comes to working out what exciting looks like. The point is, we can all agree that it’s only once you know what truly gets you excited that you can plan for the same. This is not a business aspiration, but a personal goal.

For a business owner in their 50s or 60s, the thought of spending more time with grandchildren on the golf course or travelling might be appealing, or starting a new hobby, or passing the business on so there is a legacy to be remembered by – maybe that’s what they want.

For a younger business owner who has established a business, they may have a desire to:

  • Make the world a better place
  • Have a business that supports an enviable external lifestyle
  • Make sufficient money to indulge in fun projects
  • Become a nationally known brand.

Whatever your aspiration is, it will have an impact on the structure of your business and the way you manage it.

There is nothing wrong with being selfish about your dreams, as long as other people in the business are made aware of your intentions and the business makes the necessary plans to accommodate the changes.

It could be a memorable extended holiday in India that you yearn for with your partner, or having more time off each week to spend with family. Perhaps it’s a new car, a skiing trip with friends this winter, or even a holiday home.

For me, it’s achieving early retirement, then spending time travelling with my wife and conquering some more Wainwrights and Munros while I’m still fit enough to do so.

Are you building a large enough pension pot to allow you to draw down some income before reaching the state pension age, and can you wait that long and to that age to fulfil your aspirations?

Ultimately, to achieve most of the things you want in life, you will need money to live on and to treat yourself. In simplistic terms, owning a business is about putting money in the bank.

Assign a monetary value to your goals.

Ensure that you are always focused and working towards your personal aspirations and put a number on it, e.g. a holiday £6,000, a car £24,000 or a holiday home £250,000.

Break this overall monetary value into sizable chunks, such as by month, over the period you have set.

For instance, if you need to generate an extra £1,000 net profit per month from your business over the next 24 months to buy that new car, set yourself a target of £1,200 per month.

Then stretch this monetary target; it’s always wise to stretch this monetary target by 10-20 per cent. By setting a stretched target, you may well achieve your goal early.

That first month, when you achieve the £1,200 extra income, the self-gratification and sense of achievement will make you step back again and then take the necessary steps to challenge and change things even more. Now the big wheel is turning, and achieving £1,250 per month becomes a new personal objective, thereby creating further appetite for change.

Set realistic timescales to achieve your goals.

Set yourself a realistic timescale to achieve your personal goal. Will it take three, five or even 10 years to achieve? Ensure the target is realistic, and by stretching it marginally, you are likely to challenge yourself to step back, reflect on yourself, adapt, and approach things differently. It’s about working smarter, rather than harder.

I’m currently supporting a business owner who has set a five-year plan to exit his business and retire. We are 18 months in and are realistically ahead of schedule by a good year.

Interestingly, as he can see the end in sight, he is eager to accelerate the progress.

Visualise your dream

Visualise your dream: lady walking in a meadow

Visualise your dream. Have a picture of your dream on the office wall, fridge door or screen saver on your phone or computer. Keep believing this dream is within reach and sense the feeling of achievement!

“Business Doctors has given me the confidence to try new ideas, step out of the day-to-day routine and get excited about the future instead of being despondent.” Stacey Dunne, Owner of Hartpury Saddlery.

Imagine your personal goal is within reach, and keep sensing the feeling of achievement.

This will help you focus on the tasks at hand and remind you why you’re working long hours and why you’re going through any pain to achieve your goals.

Now that would be a great feeling and sense of achievement! You have a target and the determination to achieve it.

Ultimately, it is your employees who will deliver your objectives and therefore help you to achieve your personal aspiration.

At some point, you may even step away from the day-to-day earlier than you had originally planned and get to the top of that mountain earlier than anticipated.

One important thing to note is that you do need to achieve a balanced approach.

If your dream and target are too easy to achieve, you will never push yourself to drive change. In contrast, if the goal is too stretched and unrealistic, the chances are that you may even give up.

To add, my client’s business is currently generating 18 per cent more revenue and 22 per cent more profit than when we began planning, enabling him to recruit the best talent available and refine his systems and processes.

Our next step is to find his replacement and then begin to hand over and wind down his duties, allowing him to achieve his personal goals.

“Achieving a goal is nothing. The getting there is everything. Jules Michelet

If you would like some help considering what changes need to be made in your business, so your current aspiration can be achieved, book a complimentary discovery session with your local Business Doctor.

Footnote:

This post is part of the Business Owners Handbook – a 10-part blog series designed to guide SME business owners through the essential steps for sustainable growth and success.

Ready for the next step in your journey?
Explore all 10 Steps and start building a business with purpose, direction, and real momentum.

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Related Posts

The Business Doctors Business Owners Handbook

Your business - your opportunities

Whether you are a serial entrepreneur or following your dream of being your own boss, the simple truth is that running a business has its challenges, and being the boss can be a lonely place to be.

The buck stops with you; you are expected to have all the answers.

  • Where are all the good people to be found?
  • When you do find them, why are they so expensive?
  • Who can you trust?
  • Why aren’t you making any money again this month?
  • How did you lose your key customer?
  • Who do you turn to when facing a critical decision or when your market shifts and you need to change how you operate?

No one individual has all the answers – at Business Doctors, we firmly believe that successful business is rooted in sharing experiences and knowledge without expectation of reward or return, and that is why we have written the business owners handbook to help guide you on your business growth journey and help you future-proof your business. 

Business growth pains: death by chocolate

Death by chocolate, represented by chocolate cup cakes and RIP sign.

Imagine you own a chocolate business. In the early days, life is sweet. You introduce three luxury chocolate products and start selling them through a network of high-end gift and chocolate retailers.

Buoyed by your early success, you later invest in selling directly – through a dedicated e-commerce website and a network of retail outlets you establish across the UK. You also branch out from your luxury chocolate range into middle- and mass-market products, eyeing the prospect of supermarket sales and more.

However, as the company grows and the opportunities keep popping up, the challenges multiply, too. Cocoa prices and the cost of other raw ingredients keep on rising, squeezing margins, while the complexities of producing dozens of confectionary products from a single manufacturing site for a growing number of customers with different expectations and cultures and overseeing dozens of retail branches across the country with all the staffing and property-related challenges that go with it starts to take its toll.

There is competition now coming from all directions, too, as others have moved in on the market niche you first identified and have undercut you in terms of price. Suddenly, things are not so rosy.

What to do? While most business owners might carry on working with the logic of the business they have created, distracted by cash flow, staff, customers, and all those other things, it is hard to plan for in business; really, what’s needed is a root-and-branch rethink.

Many SMEs find themselves here, and the answer isn’t always straightforward.

Budget-oriented or forecast-based planning methods are insufficient in today’s highly competitive business environment. To survive and prosper, you will need to engage in strategic planning that clearly defines your objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate your progress, and adjust as necessary to stay on track.

We will guide you through this process. Our SME owner’s handbook is designed to address all these issues and give you a clear action plan to address each one. To succeed, we will help you go on a journey of discovery and work out what matters. 

PART ONE: FIGURE OUT WHERE YOU ARE GOING

Your business growth journey starts here!

PART ONE: FIGURE OUT WHERE YOU ARE GOING

Take the time to remind yourself why you started your business in the first place.

Are you:

A restless serial entrepreneur who spends your life spotting opportunities and going after the best of them.

Following a vocation – perhaps because the prospects for doing so are better than the prospect of working for others for years to come.

An accidental entrepreneur forced by circumstance to pursue opportunities on a self-employed basis (maybe because of redundancy) has forged a business over time.

Despite your reasons, there’s a good chance that you were excited by creating your business and by its development at various points along the way. But what about right now? Is the excitement and passion still there? Or does work frequently become a stressful obligation and a chore?

Before you embark on your business growth journey, it’s worth reminding yourself about the positives of owning your business and thinking about where you would like the business to be. Next, you will need a plan for getting there. 

Driving your business values

The importance of having a clear vision, mission and values is grossly underestimated, especially within the SME community.

When a business has a compelling vision and a clear, worthwhile mission, its owners and stakeholders will be genuinely inspired, staff will be motivated, and customers will want to do business with it;. This is what makes your business tick!

Driving values in a business is more than posting a mission statement on the wall, website, and in the new-starters pack for employees. Your business values must be embraced by every person in it, starting with you, your leadership team, and every staff member,

Once you are set on what you stand for, communicate this effectively to everyone within the business and externally to customers, suppliers, and the media. This will ensure consistency and cement your culture.

More information on business culture can be found in our article Vision mission and values and why they are so important.

Purpose: What is driving you?

It’s so easy for us to focus on what we make, sell, or provide that we sometimes forget to consider our actual value—in other words, what problems we solve for our customers.

“A Deloitte survey of over 4,000 respondents* found that over half of employees (62%) consider an organisation’s purpose before deciding to join, with over a third (36%) saying that an organisation’s purpose was just as essential as their salary and benefits package.”

It’s often easier to describe your business in terms of what you do or how you do it. But can you clearly articulate why you do it?

What difference do you make to your customers, what are they buying from you, and why are they buying it from you?

Business purpose is an essential concept for building a successful and sustainable company. It provides direction and focus for the organisation, helps differentiate the company from its competitors, attracts and retains top talent, and builds a strong reputation in the market.

If your team know your purpose, they can be 100% focused and at maximum efficiency. If suppliers know your purpose, they can focus on giving you exactly what you need regarding products and services. If customers know your purpose, they are more likely to provide you with all the orders for your essential products and services.

The purpose of your business should underpin everything about it and drive its reason for being.

More on purpose can be found in our previous article What is business purpose and why is it important

Roadmap: Where is your business heading?

Long-term business vision

Although it may be difficult to think about the future when so much is happening here and now, it’s important to set out a longer-term aspiration and ambition for what you see the business achieving and becoming.

A vision is the best way to get your business moving in the right direction, regardless of others’ pessimism or lack of ambition.

No one could ever accuse Facebook’s Mark Zuckerberg of lacking a vision or some cast-iron self-belief, and look where Facebook is today.

Your milestone or visionary goal should be more challenging than the strategic or tactical goals you may already have in place. Think big; if you do, you can potentially transform your business.

PART TWO: PLAN YOUR ROUTE

Avoid roadblocks: choose the right lane

Once you have established your destination (vision), you will need to look out for any external situations and events that could affect your progress. Using the travel analogy, before embarking on a long journey, you would check your tyres, fill the tank, plan your route, and check for any traffic issues along the way.

Think snakes and ladders

Snakes and Ladders, representing obstacles and opportunities

Like in the children’s board game, ladders refer to any opportunities that could help jump-start your business with new areas for sales or improve profit margins. Snakes, meanwhile, are those changes in the social, technological, economic and political (STEP) that might restrict your business in some way, by taking away the problem your business was solving or by introducing competition that may radically cut or even remove your margins.

This process is also referred to as STEP Analysis. It is a way of scanning the horizon for emerging technologies or patterns of behaviour to provide you with foresight so you can start taking advantage of potential market changes. You will also be able to identify opportunities for accelerating your business, such as government legislation that may stimulate demand for a particular product or service.

Keep your eyes on the horizon

There will be opportunities for your business to grow and develop that you may not be aware of, but when you conduct some basic analysis on the current mix of business across your company, I wonder how many different revenue streams there are and how they could be broken down.

Conducting a market audit is the easiest way to gain a real understanding of your market and the extent of the opportunities that exist within it.

What is it that you do again?

Understand your customers, customer types, and supply chain. A list of customers is great to have, but do you really understand them and their relationship with you? Think about how and why they buy from you.

What companies are in your supply chain, and why do you buy from them? If you don’t understand where you fit into a changing supply chain, you are vulnerable.

Do you have the right vehicle?

Take a fresh look in your rearview mirror

Once you have a clear picture of the market opportunities available to you from the market audit, you will start understanding the reality of your current capabilities and, most importantly, the opportunities most relevant to you.

You will need to plan your skills and capabilities for the new market and opportunities you have identified. Think about the skills and new technologies you need to adapt or adopt.

It’s a great time for self-evaluation: consider what your business is great at and whether there are any areas for improvement. Think about where you might be vulnerable and what your edge or USP (unique selling point) is. You can do this on our GIVES checklist here.

PART THREE - MAKE IT HAPPEN

Look under the bonnet 

Do you have the WOW factor?

The way companies reach their customers and deliver for them is changing. In today’s transparent business world, being run of the mill is not enough—delivering a WOW factor is essential.

Think about your business through the eyes of your customers, concentrate on the things you can really emphasise to stand out from the crowd and understand the benefits of having a well-targeted customer offer.

Take the right people with you

The right people on the bus. Image depicts business people travelling together

Do you have the right people on the bus?

As your vision and plans come together, implementation means finding and keeping the right people with the right talents and how to get the most out of them.

A common mistake is to build your business around your people; instead, build people around your business.  

Start afresh and consider how your business needs to be staffed to meet that vision. Consider what the lines of accountability need to look like. Make sure you can retain good staff that support your business model, vision, and values by making them feel valued. Consider retraining where you have good staff who don’t have the knowledge or experience for the tasks at hand.

Any gaps in your workforce can be filled by recruiting the right people. Individuals who don’t fit with your business model or culture should be released, or they could seriously hamper your growth.

When you are happy with the people on your bus, ensure you clearly define roles, set objectives, measure performance and make them accountable.

Get your business into gear

We hope this article has helped you think about your business journey, where you want to be, and, most importantly, how to get there. You should have a better understanding of your customers, what matters to them, and how to leverage your USP.

You know what obstacles and opportunities you may face along your journey, but the route ahead is clear, and you have the right people on the bus.

You have checked your rearview mirror; now it’s time to accelerate. You are about to embark on an exciting journey.

Summary: There is no 'one right way to run a business

There are many coaches, consultants and mentors, all with their own ideas on how to run a successful business. Graham Robson, Business Doctor for the Northeast, succinctly explains the role of Business Doctors.

“Someone told me there is no ‘one right way’ to run a business. And that’s logical when you think about it: if there were one book, we would read it and know what to do. But there are thousands of books, and each tells us the ‘one right way’ to run our business, so they can’t all be right.

“It’s worse than that. There’s an army of consultants out there who have run supposedly successful businesses and think they know the ‘one right way’ to run your business. But that’s not logical, either. When they were successful, they made decisions in different environments under different circumstances and with different resources. Your business is different, so we can’t apply the same logic and circumstances; it doesn’t make sense.

“What makes Business Doctors unique is that we don’t tell you how to run your business, we do not have the one answer. What we do is listen; we want to learn and understand the issues you face – the challenges and the opportunities you have – by listening and understanding, we can get to one of the root causes behind them.”

Footnote: This article is based on the Business Doctors 10 Step Process. Just like every new car comes with a handbook—but reading it doesn’t make you a mechanic—owning a business doesn’t mean you have to navigate growth alone. If you’d like expert guidance from a Business Doctor to support your journey, we’re here to help.

Reference: Breaking Big – The Business Doctors’ no-nonsense guide to achieving breakthrough growth for your business.

Other articles in this series include:

  1. Your business growth journey (personal aspirations)
  2. Driving your business values (Values & Beliefs)
  3. What is driving you? (Purpose – what business are you in)
  4. Where is your business heading? (Destination, visionary goals)
  5. Choose the right route (Future-proof your business)
  6. Keep your eyes on the horizon (Know your market opportunities)
  7. Check your rearview mirror (Look in the mirror)
  8. Take the right people with you (Find your focus)
  9. Look under the bonnet (Press the reset button)
  10. Get your business into gear (Make it happen

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How I helped a client achieve personal freedom

We all want freedom, especially in business. Freedom to make decisions and head in the direction that we know is right.

To take you down that road, I’m going to tell a story about a client.

During our first meeting, he asked me something: Can you reduce the size of my business?

Wow, I thought, and wondered how this would look on my CV.

Graham Robson – he shrinks businesses, would be the tag line, and subject of many conversations no doubt.

Hands up if you're downsizing?

So first – a quick survey: how many of you are thinking about reducing the size of your business right now?

I thought so. Not many. It would be a very limited market for a business advisor. However, competition would also be minimal.

Seriously, the irony was that he’d started his business 12 years earlier. He’d built it into something successful, highly profitable and with a good reputation. His request was not unusual, sometimes it seems like business consumes us and we long for the times when the business was smaller, easier to control and we had more freedom.

Previously, he’d worked at a large organisation. He was unhappy there, and wanted the freedom to start his own business, to create something of value. He craved the freedom to achieve a work/life balance, to build something to be proud of, ultimately leaving it to his children in the future.

Where he ended up was the opposite. But how could things have gone so wrong?

Understanding the challenges

I wanted to hear his story so that I could understand the challenges he was facing.

He was a perfectionist and had very high standards for customer delivery. That’s no bad thing for a growing business. But as a perfectionist, he got heavily involved in operational details. He worked all hours.

He believed that nobody could deliver the service as well as him. He was the go-to guy for customers, employees and suppliers.

As the business grew he found he had less time to manage the important things. Luckily, he knew that he needed to stand back and take stock. So, he hired a commercial director to handle the increasing volume of tenders. This removed some of his workload – initially!

The problem was that he made a great appointment and the new commercial director did a fantastic job. He won so much work that the business grew a further 50% within a year. Rather than easing up and standing back, our entrepreneur become more heavily involved than ever.

He was working 7-day weeks, 10-12 hours each day. The business was maxing out because he had no more time to give.

Although the business grew very quickly in a short period of time, the business wasn’t structured to scale, the growth was not sustainable. The increase in workload could not be maintained, therefore the growth did not translate into increased business value.

Growth in bottom line profit and business value are two separate things!

A scalable business is valuable, whereas a profitable business may not necessarily be scalable

There are many things that come together to make a business valuable. It’s not simply the profit, but how sustainable those future profit streams are, and how that is captured in a profit multiple.

A key area that determines value is how independent the business is from the owner- not how reliant the business is on its owner.

Creating a business that functions effectively and independently of you ultimately provides you with a more valuable business. It also provides personal freedom.

That’s freedom to stand back, freedom to direct and manage, freedom to scale, freedom to sell or freedom to hand the business on to family members. Ultimately it provides freedom of choice.

My client eventually learned how to stand back so that the business could function independently of him. And guess what? The business continues to grow.

He discovered the road to freedom and rediscovered the goals and desire that drove him to go into business in the first place

How to create a more valuable business

If you are looking to create a more valuable business on your road to freedom, take a few minutes to complete our Value Builder Survey. It will only take you about 10 to 15 minutes and you will receive your free business evaluation showing where you are now against your competition and where you need to be to build more value in your business.

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AI Vs The Human Touch

Artificial Intelligence is no longer a futuristic concept; it is a present-day reality that has the potential to revolutionise some sectors, including small and medium-sized enterprises (SMEs). Embracing AI can unlock numerous benefits that drive business growth, efficiency, and competitiveness. Understanding how to integrate AI into your business operations is crucial to stay ahead in a rapidly evolving market landscape.

Forbes published The 10 biggest business trends everyone must be ready for now, and because AI featured as their number one, we thought it would be good to delve into the subject of AI, how it can help you achieve business growth, what specific AI tools you may wish to consider, we will also touch on AI vs the human touch.

Benefits of using AI in your business

AI can automate up to 45% of business processes in SMEs Forbes

One of the primary ways AI can benefit you is through automation. By automating routine and repetitive tasks, AI will help you to streamline your operations, reduce human error, and free up valuable time so employees can focus on more strategic activities. Automation can lead to significant cost savings and improved productivity, which are vital for your growth and sustainability.

AI enhances decision-making processes by providing data-driven insights. By analysing vast amounts of data quickly and accurately, AI can identify trends, forecast demand, and make informed strategic decisions. Data leads to more effective resource allocation and better market positioning, driving business growth.

AI improves customer experience through personalised interactions. By analysing your customer data, AI can tailor recommendations, predict needs, and provide you with timely support. Enhanced customer satisfaction and loyalty directly contribute to increased sales and business expansion.

AI-driven marketing strategies will help you to target your audience more effectively. AI can identify the most promising leads through advanced analytics, optimise ad spend, and personalise marketing messages. This precision in marketing efforts results in higher conversion rates and revenue growth.

Incorporating AI into your business operations can significantly enhance efficiency by automating repetitive and time-consuming tasks, allowing your team to focus on more strategic activities that drive growth and innovation.

75% of SMEs believe AI is essential for future competitiveness Forbes

Implementing AI can give your business a competitive edge by enabling faster innovation cycles. With AI, you can quickly test and iterate on new ideas and stay ahead of industry trends and competitors.

Incorporating AI into your business operations is not just about keeping up with technology trends; it’s about future-proofing your business. As AI evolves, early adoption can position your business for sustained growth and success in an increasingly digital world.

70% of SMEs plan to invest in AI technology by 2024 Forbes

Essential AI tools for SMEs

We have helped many business owners adopt AI in their businesses with transformational results, so we have compiled a list of our favourite tools.

Essential AI tools to revolutionise your business

Customer Relationship Management (CRM)

One of the most effective AI tools is customer relationship management (CRM) software enhanced with AI capabilities. Tools like Salesforce Einstein or HubSpot use AI to analyse customer data, predict sales trends, and automate repetitive tasks, allowing you to focus on building stronger customer relationships and driving sales growth. Read independent reviews on the Best CRM Software with AI capabilities from Tech Republic and Technology Advice.

Customer Service

AI-powered chatbots and virtual assistants, such as those offered by platforms like Intercom or Drift, can significantly enhance your customer service. These tools provide 24/7 customer support, handle common inquiries, and can even guide your customers through the purchasing process, improving customer satisfaction and freeing up human resources. Read AI Customer Support Software for 2024 from Zendesk for more information.

Decision Making

60% of SMEs report improved decision-making with AI Forbes

Predictive analytics tools, such as those provided by IBM Watson or Google Analytics, can help you make data-driven decisions. These tools help you analyse historical data to forecast future trends, helping optimise inventory, manage resources more efficiently, and identify new market opportunities for your business. For more information, read Best Predictive Analytics Software – Gartner.

Marketing Automation

AI-driven marketing automation platforms like Mailchimp or Marketo can streamline marketing efforts. These tools use AI to segment audiences, personalise content, and optimise campaign performance, ensuring that your marketing efforts are effective.

Natural language processing (NLP) tools, such as those integrated into Grammarly or Zoho Writer, can improve content creation and communication. These tools help in drafting error-free, engaging content and can even provide insights into the tone and readability of the text, enhancing overall communication strategies. Just be mindful to add a personal (human) touch (see final paragraph). 10 Best Marketing Automation Tools – Digital Ocean.

AI can automate routine tasks, freeing up employees for more strategic work (LinkedIn)

Financial Management

AI-based financial management tools like QuickBooks or Xero can automate accounting tasks, provide real-time financial insights, and help with budgeting and forecasting. These tools reduce the time spent on manual financial management and improve the accuracy of your financial data, aiding in better financial decision-making.

Supply Chain

Supply chain optimisation tools, such as those offered by Amazon Business or ScaleAI, use AI to enhance supply chain efficiency. These tools analyse data across the supply chain to predict demand, optimise inventory levels, and improve logistics, helping you reduce costs and increase your operational efficiency.

AI vs the human touch

Artificial Intelligence vs the human touch

When we consider AI versus the human touch, it’s important that you recognise it isn’t a battle but rather a collaboration. Yes, AI can streamline your operations, provide you with data-driven insights, and assist in handling repetitive tasks.

However, the human touch remains irreplaceable in many aspects. Our empathy, intuition, and ability to build relationships forge strong connections with customers and partners. When you combine the power of AI with human nuances you will be able to create a harmonious blend.

Imagine leveraging AI to analyse customer data and predict trends while the human side uses these insights to tailor personalised experiences and build lasting partnerships. This synergy can significantly enhance how you operate, making processes smoother while keeping interactions personal and meaningful.

So, let’s embrace AI as a valuable ally. Together, we can harness its capabilities to amplify our strengths and elevate our business into the future. The key lies in balancing technology with a unique human touch, ensuring we stay connected, relevant, and resilient in an ever-evolving marketplace.

This is part six in the topic, Planning for a Successful Year, where we explore current business challenges and how new business trends can help drive business growth this year and beyond.

If you would like additional information on the subject of AI, please get in touch.

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Making it happen - what does success look like?

“Growth is never by mere chance. It is the result of forces working together.” — James Cash Penney.

In our series of business growth articles, we have explored some key components for building a successful business growth strategy, the importance of having a purpose, some roadblocks to achieving growth and how to develop a winning business strategy.

Now comes the exciting bit, making it happen, where you will see your plans come to fruition, and you and your team can start to put all your plans into action. 

Ready, steady, grow!

“Your value proposition is what sets your business apart from the competition and is the reason why customers choose your business over others. To scale your business exponentially, it is essential to have a value proposition that is both unique and compelling. This means understanding what makes your business different and why it matters to your target market.” Forbes

You have decided upon a business growth strategy; you should have also identified your market, the opportunity size, and what products or services you will promote.

You should also know who your most valuable customers are and be aware of your competition.

Before diving in, take a deep breath and ask yourself if your plans are feasible, achievable and deliverable. Think about and document your strengths and weaknesses.

What are you great at?

They might be a high service level, prompt delivery, high-quality product or the ability to listen to your customer’s needs before offering a solution. Keep doing these things well, and tell people about them. Obtaining testimonials and case studies is a great way to share your strengths and promote your business through marketing.

Where can you improve?

Be honest and list improvement areas; these become your first actions in your business improvement plan. You may need to improve systems, branding, corporate image, and communications across the business, refine team meetings, host one-to-ones or enhance the measurement of business metrics.

Where are you vulnerable?

What are the significant risks in growing your business? Does your business revolve around one or two key people? Dependency on specific individuals poses a risk and can restrict your business growth, so you will need a plan to mitigate this.

What is your competitive edge?

What makes you stand out from the crowd? What’s your Unique Selling Proposition (USP)? Write these down and form your key messages around them.

Create a winning team

Look at your current organisational structure and ask yourself if it is adequate and able to handle an increase in business. If you don’t currently have the right people in the right roles, you may need to make some tough decisions. 

Focus on the job roles and competencies you need rather than building the business around existing individual staff members.

Consider recruiting a business development executive who can get to know your customers and your business inside out to prepare you for new growth opportunities.

Get your team onboard

If you want your business growth strategy to have the best chance of success, you will need to get your team on board. Share your purpose, so your staff have a clear understanding of what the company stands for and delivers. See our Staff engagement post for more information.

Establish real sales targets and share these with your team. Give your staff ownership and the tools to deliver. Measure their performance and follow up with them regularly, providing praise and managing poor performance face-to-face.

Chase margin, not turnover

In the first few years of your business, you may have said yes to every opportunity; now, it is about chasing margin, not turnover and being confident in saying no.

Focus on high-margin generating revenue and do more of those pieces of work which make higher profits and have less hassle factor.

Develop strategic partnerships

Build relationships with strategic partners – for example, businesses that are selling something different to you but to the same target market; you may well complement each other.

Work smarter, not harder

Outsource non-core activities such as marketing, social media, website development, accountancy/bookkeeping, and HR so that you can spend your time strategically and operationally on high-revenue generating tasks. It might seem expensive to pay someone, £25-£50 per hour or £400 per day, to do something you could do yourself, but free up more of your non-productive time, and you’ll be surprised what new business you can generate. 

Systemise your business processes

Invest in IT software to secure processes and take human interaction out of as many tasks as possible – this helps with consistency, customers will get a consistent and robust level of service, allowing you to step out of the business. Consider ERP – Stock ordering/management systems; CRM – Customer Management and accounts systems. There are many on the market, and some are even sector-specific. 

“If you always do what you’ve always done, you’ll always get what you’ve always got.” Henry Ford

Navigate your route to business growth success

Here are some common pitfalls you may encounter as you begin your business growth journey and how to avoid them.

  1. Set SMART objectives monthly, quarterly, and annually. Stretch these and aim for the moon. One tip is to work to a 90-day plan. When faced with many tasks on the to-do list, ask yourself: What could I do today or tomorrow that will make a positive impact on my business this month? Then do it.
  2. You cannot do everything yourself, so think about outsourcing or delegating and escape the Owner’s Trap
  3. Have a plan and review actuals versus budgets and do something different to rectify any variances. Why not ask yourself every Friday afternoon: What went well this week? What didn’t go so well? What am I going to do differently next week? Then, plan those tasks in the diary.
  4. Surround yourself with like-minded associates and a support network because running a business can be lonely.
  5. Fail fast and bounce back from the falls and disappointments – James Dyson once said that if you haven’t failed, you are not trying hard enough.
  6. Find out how to effectively get your product or service to market; if it is a challenge, outsource to a marketing or sales specialist, particularly if it is not your forte.
  7. Get out there – Be sociable, network, go to seminars, events, Expo’s. Interact, learn and get yourself known in your marketplace.
  8. Your best salespeople are your customers – make sure they become advocates. Ask for testimonials and case studies to build social proofing. Keep in close contact with these customers as they will have many contacts they could introduce/refer you to.
  9. Keep a close eye on your finances and future working capital requirements. Rapid growth can cause just as many company failures as having no growth. Ensure you use accountancy software such as Xero, QuickBooks, Sage One etc. Create and have current robust business KPIs at your fingertips; this helps when you go for funding or to the bank to finance growth. Take a look at our 12 tips for managing cash flow.  

Don’t let doubt stop you from growing your business

We all have moments of doubt from time to time. As business leaders, we must push through them and believe in ourselves. As if this wasn’t hard enough, we have to learn how to believe in ourselves when we are feeling at our most alone and vulnerable. In amongst that noise, we then have to be able to recognise when we are the very factor that is holding back the company’s growth! The only way to do this is to commit to growing your business by making the changes necessary whilst maintaining our self-belief!

Don't become an employee in your own business.

Working long hours seven days a week will not make you more productive, effective or successful. It will make running your business a chore and a millstone around your neck; you will become a slave to the tasks and needs of the business. 

Take time for yourself by planning your downtime in the diary now at the start of the New Year – plan your family holidays and put these in the diary first. Work around these dates and don’t cancel, because if you don’t take your holidays, you’ll compromise your most important relationships.

I hope that our series of business growth articles has motivated you to think about some of the things that you need to implement in order to grow your business. If you feel overwhelmed by these considerations, that’s normal; no one can achieve their aspirations without help and guidance.

If you think you could benefit from help and guidance from someone who has been where you are and encountered the same challenges, please contact us.

We can arrange a free business health check to help you set a clear vision and understand the key steps you need to take to fulfil your aspirations for business growth.

Business Growth Article 6/6

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Roadblocks to business growth

The Owner’s Trap

Many individuals set up businesses because they are looking for freedom. Freedom from bosses, from routine and drudgery and the freedom to work with who they want, how they want.

Unfortunately, the reality is somewhat different for many business owners, particularly after the first two or three years. 

By now, things have fallen into a pattern, and you’re the first to unlock the business in the morning, the last to get paid, and you generally deal with all the complaints and problems. And you’re working longer hours than ever.

Sales slow whenever you are away, and your company seems to have stalled in its growth. 

No one is taking responsibility, all phone calls seem to be for you, and staff are hanging around waiting for your instructions.

Being in the Owner’s Trap is bad news for you and bad for your business.

Signs that you are in the Owner’s Trap

  • Has your revenue reached a plateau?
  • Does your business slow down when you are away?
  • Do customers come to you when something goes wrong?

If you were to draw a picture representing your role in your business, would you be at the top of a traditional Christmas tree-like organisational chart, or are you stuck in the middle of your business, like a hub in a bicycle wheel? 

Are you able to leave the business for a month without serious repercussions? Do you need to be consulted whenever decisions are required?

If this sounds familiar, you are not alone. Most business owners and CEOs face this challenge at one time or another in the evolution and growth of their businesses.

More than 60% of businesses fail within the first three years. And many that do survive past this start-up stage are firmly in the owner’s trap.

(See our Ultimate Guide to Business Growth for more roadblocks to growth).

Six tentacles of the owner’s trap

Those businesses that go on to be successful and sustainable enterprises have learned the key to standing back from the coal face and focusing on growth.

So why do a handful of start-ups make it through this critical stage whilst others languish and become a lifelong burden for the owner?

Let’s review the six tentacles of the owner’s trap and examine how each may hold you back.

Technical competence

Competence is probably the leading cause of falling into the owner’s trap. Most entrepreneurs start a business because they are technically competent at something. They have a skill and assume that no one else can deliver the product or service as well as they can.

Customers go to the owner for issues, employees go to the owner for decisions, and suppliers go to the owner for orders. The growth of the business ultimately becomes dependent on the amount of time the owner can devote to it.

The owner mistakenly believes they are working hard for the business’s good but, in reality, may be sacrificing family for nothing. When a company depends on the owner in this way, it is not a valuable business.

Striving for perfection

Many entrepreneurs caught in the owner’s trap believe their delivery to the customer must be perfect, creating an immense strain on both owner and business. Good and on time is far superior to perfect and late. Perfection is always elusive and cannot be accurately specified; it lives in the owner’s imagination and holds back productivity and growth.

Fear of delegation

Fear of delegation results from an owner’s belief that no one can perform a task better than them. In this situation, the owner mistrusts their employees, believing they are not as dedicated as them —lack of delegation can result in low employee engagement and high staff turnover, seriously impacting business growth.

Customer satisfaction

Business owners caught in the owner’s trap often know their customers on first-name terms and deal with them directly; they are eager to satisfy their needs and believe they are always right. As a result, customers may become more demanding, requesting additional services that are typically outside the primary offering.

Turnover over profit

Focussing on growing turnover rather than profit can manifest itself with the owner adding more products or services for incremental growth in turnover without understanding the cost of providing such additional services. 

This leads the business to experience cash flow issues where the working capital required to grow the company cannot be covered by the low margin return

Scaling up

Anything more than incremental growth may strain resources and result in a poor customer experience. On the other hand, Scale is about exponential growth in turnover with incremental growth in resources, which is far less risky

Three cost-effective strategies to help you escape the owner's trap

If you aspire to build a valuable company, the ability for your business to operate independently without you is crucial.

Let’s explore three cost-effective, simple strategies to set your business on a path to autonomy and allow it to thrive without your constant presence.

1. Narrow down your offering

Most owners can’t replace themselves because a substitute would be too expensive. Trying to replace your breadth of experience would likely require a very high-salaried employee. If you can’t afford to replace everything you do, narrow down your core offering. 

Attempting to be all things to all people may spread yourself too thin. Think carefully about your target market and your range of products and services.

When you narrow down your offering, you can bypass the high salary that comes with someone with a wide breadth of experience.

2. Create a question diary

When Steven Davies was building his digital marketing agency, he made a conscious choice every time an employee came to ask him a question. 

The easy thing to do would have been to answer the question, but he forced himself to write each question down. He turned that question diary into a business manual that documented how to do every task his employees required. 

His manual came in the form of an Excel spreadsheet with 50 tabs, each documenting a specific process.

Challenge yourself to do the same: When an employee asks you a question, resist the urge to answer and move on. Document those queries and turn them into a standard operating procedure (SOP) that enables your staff to develop expertise. The go-to reference will become the manual instead of you.

3. List your employees alphabetically on your site

Most companies list their employees by seniority, with the owner and CEO as the top listing. However, this communicates that you are the most important person in your company, which will trigger everyone, from salespeople to suppliers and prospective partners, to want to go straight to the top by calling you.

An effective strategy for downplaying your role in your company (and getting others to step up and shoulder more) is to list employees alphabetically rather than by seniority on your company’s website. This approach can minimise the spotlight on you. Additionally, using titles like “Head of Culture” and “Head of Product” instead of “CEO” or “Owner” can further obscure your seniority, making it less likely that customers will call you by default.

“Many years ago, my wife and I were starting up our software business. After a few months, we were fully-fledged residents of the Owners Trap. I knew we had to break out somehow, and we took on our first employee, a field engineer. Naturally, it took a few months to get him to become useful.

“One memorable day, the phone rang, and someone asked to speak to someone else but me. I’d never even met the customer! It was a great feeling, although a scary one. I wasn’t the hub of the business any more; I was out of the Owner’s Trap.”

Step out of the owner’s trap and manage yourself out of the business

Find out what’s holding you back

Diagnose what may be holding you back from creating a company that can fully thrive without you. 

Take our 15-minute survey and see how you fare against the industry averages. Your answers will also unlock a 21-page report with recommendations on escaping the owner’s trap. Take the survey

“If you can remove yourself from the day-to-day stuff of the business, you can get into your helicopter and see how things look from above.”

Getting your business to thrive without you gives you the freedom to cherry-pick the projects you want to work on or own your business and collect passive income. A company that runs without you is also a valuable, sellable asset if you decide to move on to a new chapter in your life. 

Narrowing down, creating SOPs, and downplaying your role on your website are all tactical things you can do today to get your business running more independently in the future.

If you’re experiencing the owner’s trap, or would like further information about the services Business Doctors provide – get in touch.

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