We are bigger, so why am I working harder?

Dear Aunty B,

I am fed up. My financials for the year have just come in and I was expecting to make a small profit. Instead, my CFO has told me I will make a $21,000 loss. I feel like the fun has gone, I have zero passion to come to the office every morning and I am just breaking even!

Yet we are a fast growing company (we’ve even been on the SmartCompany award lists!) and our revenue is at an all time high. I always expected that the bigger we got the more money we would make and the less I would have to work.

Disillusioned JG,
Vic

Dear Disillusioned JG,

Just take a moment to blow off steam and swallow your disappointment. Then you are going to make a vow with me: “Things are going to change. In two years time I will be working less and earning more.”

Now here is your problem and here is what you must do.

Your problem is you are transitioning from small to medium. Research that I have done with RMIT University shows that fast growing companies have mixed success when trying to leap that barrier. About a third stay put: they stop growing because it is not profitable and they stay the same size. A third sold or were acquired and a few failed. But about a third broke through the barrier and want on to become big profitable companies.

To become one of these companies that break through, you must do five things:

1. Grow your leadership team and encourage them to delegate.
2. Put in systems, processes and structures to ease the complexity.
3. Be very clear about your competitive advantage in the marketplace: why are you different and why can you charge more.
4. You must have a very clear vision and strategy which sets out what your margins are, who are your profitable customers and your best channels to market.
5: Stay focused on the changing marketplace and don’t be distracted by internal stresses and pressures.

None of these are easy. So you must take a long-term approach. First identify where you are weak and vulnerable. Do you not have a top leadership team? Which processes will not support future growth?

Then gather your strategic team and work out step by step how to improve your situation.

Lastly understand that your disappointment is based on a false premise. Running a business that is profitable, predictable and well managed is a great aim and is a great challenge! And to get there takes one step at a time as you refine, build, dismantle and rebuild.

So set a new vision for your business and I am sure that will reignite your passion. But have a holiday first. You are probably suffering burn out

Good luck!
Your Aunty B

To read more Aunty B advice, click here.

Email your questions, problems and issues to auntyb@smartcompany.com.au right now!