| Top 10 challenges faced in scaling up the business |
| § Lack of Alignment in the values and Purpose of the company |
| § Market Misalignment between the Product/service offered and Customer needs/wants |
| § Owner Centralized Decision Structures leading to a bottle neck at the top |
| § Lack of a clear business direction cascaded down to the team below |
| § Lack of efficient & seamless integration of technology in the business operation |
| § Inability to handle Next Generation Succession and Engagement effectively |
| § Lack of Non Family professionals in key positions |
| § Lack of an effective board for the External View of Business Performance |
| § Inability to attract and retain talent due to favoritism towards family members |
| § External Variables like competing with big businesses, foreign companies, and a very fast changing technology landscape. |
Are you just Growing or Scaling Up?
- On: September 16, 2021
- By: alignedpillars
It’s crucial to know if you are simply growing every year or scaling up. And once you know, how do you get into the scale-up mode? How do you make the entire company good at what you were initially good at i.e. systematize the delivery of the value proposition? Few pointers:
1. Certain manual repetitive efforts like billing can be replaced with set processes and systems for higher efficiency together with IT enablement (computerised billing).
2. The Talent of the Entrepreneur can be translated to his A team in each department to ensure Value delivery is in sync
3. High Touch interactions with clients can be set up by having skilled workforce and standardised training to ensure all talk the same language
But why is it tough for entrepreneurs to switch to the scale-up mode?
1. You’ve had Good people who have stayed with you so far. But are they the Right people for their job? Replacing Good people with the Right people is the first challenge you will face.
2. Negotiating ground rules with the Right people on what culture and methods will prevail going forward is a tipping point. So far you’ve had ‘yes’ men but now you need to convince senior management professionals who are not acquainted with your style of working.
3. Acquiring new skills and being abreast with the new disruptive technology has been a big challenge for the Entrepreneurs today in this ever-changing world.
4. The mind-set that training people is a worthless investment of time and that they should know what they are supposed to deliver just because you are paying them salary.
If you can overcome these initial challenges and blend the people with systematic processes, your company will soon enter into the scale-up mode.