As you grow, things change. You need to adapt your service or product, even if you offer the same product. It is different to run a business with 40 people than one with 10. These models can help you determine where you are now, where you want to be in a few years, as well as what traps to avoid to get there. Everything you need to know about growth before you can grow your business
Processes can burst due to growth. What was once a good idea now has a lot of bottlenecks. This is because more business owners have to make decisions. If you don’t make changes to your work process, the growth will be unsustainable and only make things worse. This book will teach you everything you need to know about how to avoid common mistakes that business owners make when growing their businesses. We are grateful that you have subscribed! All newsletter subscribers can download this (and many other ActiveCollab Project Management Guides). Download the Ebook We are unable to subscribe you at the moment. Please double-check your email address. If issue still persist, please let us know by sending an email to [email protected] Try Again Things break when you grow
As you grow, your processes need to be updated. Everything breaks roughly at multiples 3 and powers 10.”- Phil Libin, ex-CEO of Evernote. For example, everything works if you run everything yourself. Then there are three of you, and things change. Then, you have to work together, make decisions, and divide up the work. After a while, you can adjust and everything is fine. When you reach 10 people, everything starts to go wrong. Things like scheduling meetings, managing payroll, communicating, making decisions, allocating resources, hiring, onboarding new employees, etc. This cycle continues at 30-100, 300-1,000 and 1,000 people. Companies that grow quickly are in trouble. Without updating their processes, a fast-growing company could go from 30 to 400 employees. Companies need to constantly innovate and improve their processes. This is a trap that big companies often fall into. It is not easy for big companies to manage a company of 1,000 employees, but it is possible to manage a company with 3,000 employees. The next breakpoint takes a lot longer. The next breakpoint takes a lot more time.
Larry Greiner stated that each company has six stages. Each stage is different and a company’s growth will be different (e.g. The founders drive the company’s growth in its early years. Later growth is driven primarily by their hard work. Managers delegate work to them later and there are different crises (e.g. The founders drive the company’s early growth. Later growth is driven by delegating work to managers and different crises (e.g. If the company can survive the crisis, it moves on to the next stage. And to go to the next stage, the company needs to change how it’s organized.More people means your coordination and communication problems magnify, the management hierarchy multiplies, and jobs become more interrelated.Management practices that were appropriate for a smaller s
