Growth brings increased opportunity, but at the same time, increases risk. Poorly managed risk can cause failure, even if the business is growing.
So, how do we plan for success in a fast-growing business?
There are three fundamentals to successfully scale up your business: having a clear organization structure, having comprehensive systems and processes - both of which must be clearly documented - and finally, developing great leadership skills.
Fundamental one: your Organization structure
1. A clear organization structure allows a business to successfully scale.
It will enable you to increase your revenue without creating bottlenecks and overloading your team. Your bottom line should increase at a greater rate than your revenue, as your business becomes more efficient and achieves economies of scale.
2. Every business has 10 departments.
Your organization structure depicts the 10 departments in your business, the responsibilities of each position, and how the hierarchy works. Each department should have only one leader. The leader, whilst holding the responsibility for the department, does not necessarily perform the tasks.
3. As you scale up your business, ensure you develop your key team members.
Every role should have a clear job description identifying a maximum of 10 key responsibilities, with clear tasks and KPIs identified for each responsibility.
Empowering the capable members in your team to learn how to lead a department will engage them to support you in your quest to scale. Delegating the leadership of some departments will also free up your capacity to work on higher level activities.
4. Review your organization structure regularly, updating key responsibilities as they evolve.
Ensure the work your team is doing aligns with your structure. Ask your team if their roles have changed at their performance review and update their job descriptions and the organization structure accordingly.
By ensuring you have the correct organization structure, you’ll be able to gain more control and spend more time enjoying your hobbies while growing your business.
“Incredible things in the business world are never made by a single person, but by a team.” - Steve Jobs
We can help you define your Organization Structure. Get in touch with your THG team member or contact us today.