As entrepreneurs, we all know how much work it takes to get a business planned and launched. In the beginning, there is so much that goes into planning and launching that, a lot of times, all falls on the shoulders of the founder or founders. This is both an exciting and overwhelming time for most of us, but the humble beginnings often bring up good memories of an easier time. Naturally, as businesses become more successful, they grow, and growing means the need for more hands on deck. Roles get defined, the needs of the business change, and things start moving faster and faster. This all sounds like great news for the business as long as everyone is on board and ready to adjust to these business gains. Feeling like you are being left out of the business you started can be a very scary position to find yourself in, but not to worry, because we heard some great tips from our guest on this week’s episode of the Making Bank Podcast. This week, we chatted with Ryan Coon of Avail, and he had some great advice on how to stay connected with your business throughout the growing process.
Understanding the Different Roles
Like we stated above, as the business grows, the needs of the business will change as well. This typically means hiring individuals to handle specific aspects of the business, some of which you may be well-versed in, and some of which you may need to acquaint yourself with. Being able to step in and fill these roles as needed will not only keep things moving but also work to create strong connections between you and your employees. Generally speaking, people want to feel seen and appreciated, but, especially, people want their work to be valued. If you can step in and help these individuals with their workload from time to time, you will not only garner a tremendous amount of respect from your employees, but you will also be creating a healthy and free-flowing company culture model. Being a highly visible CEO or founder that is willing to jump in and get your hands dirty is much more approachable than someone that is rarely seen or even heard from. This practice, in turn, also keeps you in-tune with the intricacies of what is going on with the different teams and their day-to-day processes. With all the demands that come with running a business, this can seem like a lot to add to an already overfilled plate, but it will ultimately pay off by creating a better atmosphere for all within the company. For perspective, which sounds more appealing: being the company that has high profit margins but also has a high turnover rate or being the company with high profit margins, free-flowing company culture, low turnover rate, and great employee evaluations of workplace satisfaction? The obvious answer is the latter. Take some time to invest in the skills that your employees do for you every day; their respect and trust is going to be a meaningful piece to the puzzle of success.
While on the topic of company growth, we need to also bring up a major factor in running a business, capital. As our guest on this week’s episode, Ryan Coon pointed out that obtaining outside capital is not for every business. This may seem odd, but if we break down this statement, the potential pitfalls of outside capital for some businesses will become more apparent. Ryan spoke to the point that outside capital can accelerate things in good ways and bad: money is going to amplify the situation the company is currently in, which is some food for thought. Raising outside capital means investment, so, in turn, investors want to see their needs met and a return on their investment. This is where things really spiral out of control if smart decisions are not made. With investing, money means control, so if you find your company in desperate need of cash, you can easily make poor decisions in an attempt to save the company in the short term, but you have to keep the overall business plan in mind. If you take on too much outside investment, you are risking losing control of your company. The more outside investors that have stake in your company, the more needs that have to be met, and you could no longer be a controlling partner. That is not where you want to be; you have built this company from the ground up and do not want to see it slip through your fingers. Not only will you no longer have control if you find yourself in this situation, but you are also risking your reputation. As founder, your name will always be attached to this company, so the poor decisions of others could come back to haunt you. These are just some examples of how things could go wrong if you are not careful when seeking outside investment. Like with most things, everything in moderation can be good; just do not go overboard and get yourself and your company in a pinch you cannot get out of.
Growing pains of business are common and typically mean you and your company are on a positive and successful trajectory. When things get stressful as the business begins to grow, try to keep in mind that this is good stress, this is stress that will lead to success. It may be hard trusting others to handle some of the essential business aspects that you have done for so long, but that just means that you can focus on the bigger picture at hand, continuing to grow your business to reach its maximum potential. Roles will change, there will be new hires, larger workspaces, and new fires to be put out, but this is why you are an entrepreneur. You were made for business, and you have the knowledge and drive to get to where you need to be.