Scaling Up Your Business: Essential Tips from a Seasoned Entrepreneur
Identifying Market Needs and Creating Demand
As an experienced entrepreneur who has grown a business from $1 million to $1 billion in revenue, Steven J. Manning shares his insights on the essential tips for rapid business expansion. He emphasizes that the key lies in identifying specific needs in the market and either fulfilling them or creating new ones.
“The opportunities lay in identifying specific needs that you can fulfil either as a primary or secondary. By that, I mean, you’re the first one or you need to, or you actually create a need.”
Manning cites the example of the “pet rock” craze, where a friend of his created a product and a need around it through clever marketing and copywriting. This illustrates how an entrepreneur can succeed by understanding the market and crafting the right message to capture attention and demand.
Listen to the interview below or on all major channels.
Navigating the Plateaus of Business Growth
According to Manning, businesses typically go through four distinct plateaus as they scale up: entrepreneurial, managerial, regressive, and professional. Navigating these stages is crucial for successful expansion.
Entrepreneurial Stage
In the entrepreneurial stage, the founders are heavily involved in every aspect of the business, counting every penny and working around the clock. This hands-on approach is necessary in the early days, but it cannot be sustained as the business grows.
Managerial Stage
As the business expands, the founders need to hire managers to handle the day-to-day operations, such as accounting, HR, and insurance. This transition can be challenging, as the founders may struggle to relinquish control and trust their employees.
Regressive Stage
During the regressive stage, the founders may become overly involved in the minutiae of the business, micromanaging their employees and undermining the managerial structure they had put in place. This can lead to a decline in the business’s growth and profitability.
Professional Stage
To overcome the regressive stage, the founders must hire seasoned professionals to manage the various functions of the business, such as manufacturing, supply chain, and human resources. This allows the founders to focus on the strategic direction of the company while empowering their team to execute the day-to-day operations.
Understanding Capital Expenses and Variable Costs
Manning emphasizes the importance of understanding the difference between capital expenses and variable costs when scaling a business. Capital expenses, such as the cost of a building or equipment, need to be tailored to the anticipated growth of the business. Variable expenses, like utilities and supplies, should be managed efficiently to ensure profitability.
“You need to be able to put your money in a place that you can truly exploit the capital expense over time and volume.”
Failing to properly manage these financial aspects can lead to the downfall of many businesses, as they often run out of money due to a lack of understanding of their cost structure.
Avoiding the Pitfalls of Diversification
Manning cautions against the temptation to diversify into unrelated businesses, as this can often lead to the dilution of a company’s core competencies. He cites examples of large corporations that have attempted to expand into unrelated industries, only to later backtrack and focus on their primary business.
“Diversify and what? Uh-uh a factory that makes Jobs up wheat. How’s that a competency? It’s not. So what’s the natural idea?”
The key, according to Manning, is to focus on the company’s core strengths and find ways to scale up within that domain, rather than chasing after “shiny pennies” that may not align with the business’s expertise and resources.
Conclusion
Steven J. Manning’s insights on scaling up a business provide a valuable roadmap for entrepreneurs and business leaders. By understanding the importance of identifying market needs, navigating the growth plateaus, managing financial resources, and avoiding the pitfalls of diversification, businesses can position themselves for sustainable and profitable expansion.
MANY BUSINESSES — FROM START-UPs, NASCENT AND SMALL TO MATURE
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AS DO PODCASTERS, INDIVIDUAL CONTENT CREATORS AND EVEN INDUSTRIES’ SPECIFIC EXPERTS.
BUSINESSES AND INDIVIDUALS FAIL TO DIFFERENTIATE BETWEEN THE UTILITARIAN NEED FOR ALL MANNER OF AI AND THE WINDOW DRESSING THEY
FEEL THEY MUST HAVE.
AI IS NOT THE BE-ALL, END-ALL SOLUTION!
IN THE WORLD OF SOLUTIONS, MANNING; SCHOOLER ARE INTERNATIONALLY RECOGNIZED LEADERS.
Do take the time to listen to the talk that Steven J Manning and I did on this topic and order Steven’s new book: Amazon
Steven is grateful for the great early reviews of his book, THE BUSINESS OF LIFE. Taking a wrecking ball to conventions and norms, in search for independent thought.
The eBook is now available on Amazon and the Audiobook is available on Audible.
Thank you in advance for reading my book. I know you will enjoy it! I will be most appreciative for a five-star review on Amazon, helping make my book a BEST SELLER.
Please tell family, friends and colleagues about THE BUSINESS OF LIFE.
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Reach out to: contact@legacymediahub.com or sjmanning@fymc.com