Are you hoping to scale your business? It's both exciting and daunting and brings a slew of new challenges to the forefront.
In a recent interview, Adi Klevit of Business Success Consulting Group and Mandi Ellefson of Hands-Off CEO discussed common hurdles CEOs face when scaling their businesses, along with solutions for these issues. Read on to find out more. And, if you want more information and examples after you read this, be sure to listen to the interview!
Five Common Scalability Challenges and How to Overcome Them
If you're encountering obstacles as you attempt to scale, the insights below will help you identify and overcome them to ensure long-term success.
1. Wearing Too Many Hats as CEO
One of the most significant barriers to scalability is when the CEO is involved in tasks outside their role. CEOs often find themselves stepping into roles within the company to put out fires. This is occasionally necessary, but if a CEO steps into an operational role to solve a problem, they need to then step out of that role and return to their position as the company leader. Often, a CEO will hang onto a job far longer than they need to, which means they work longer hours because they are effectively doing several jobs within the company.
The Solution: Remember, a CEO is not the average "worker" within the company, they are there to lead the company toward a predetermined vision. With that in mind, clearly define your role and responsibilities as a CEO. Delegate tasks that don't fit your leadership role to qualified team members.
This allows you to focus on the bigger picture—strategic planning, growth initiatives, and leadership development—without getting bogged down by day-to-day operations.
2. Not Delegating Specialized Work
When the CEO is the only person capable of performing specialized work, scalability becomes impossible. This often stems from a refusal to delegate, a lack of skilled hires, or insufficient training for existing staff.
The Solution:
Delegate: Let go of control and assign responsibilities to others. This is often easier said than done. Read these articles about delegation: Delegate and Grow, Create a Hiring System Using These Simple Steps, and Five Strategies for Building Processes that Support Delegation.
Hire for Skill: Bring on team members with the necessary expertise to handle specialized tasks.
Train: Develop comprehensive training programs to empower employees and build a self-sufficient team.
By cultivating a skilled and capable workforce, you'll free up your time and enable the business to grow without depending solely on your expertise.
3. Lack of Alignment on Growth Plans and Tools
A lack of clarity and agreement on growth plans, job descriptions, scorecards, and performance metrics can create confusion and inefficiencies. Growth stalls when these tools aren't defined and used.
The Solution: Develop clear processes for creating and using essential tools such as scorecards, growth plans, and job descriptions. Ensure these tools are not only written down but actively used.
For example, it's not good enough to simply write a process for creating scorecards. This is not meant to be an exercise in creating more paperwork. The scorecards must then be used. The process should include regularly reviewing the scorecard with employees, tying bonuses to performance, and creating incentives for getting the best work from your team.
4. Lack of Transferability in Business Systems
Your business may have systems in place, but are they robust and transferable? A company that relies entirely on the CEO for process building and implementation is not scalable or ready for eventual sale or leadership transitions.
The Solution: Work with your team to document all systems and processes, ensuring they are standardized and easily transferable. This sets the foundation for growth and prepares the business for leadership changes, whether through hiring a CEO, selling the company, or stepping into a founder role. A business that runs seamlessly, even if you're not there, is built to scale.
5. Lack of Support Systems for Employees
Support systems for technical or specialized staff must be in place, or your business cannot grow. Without proper administrative support, highly skilled professionals may find themselves managing HR issues or dealing with accounting tasks, pulling them away from their actual jobs.
The Solution: Invest in administrative and support staff to handle non-specialized tasks, allowing technical staff to focus on their core responsibilities. Moreover, ensure the support staff's tasks are streamlined and systemized to maximize efficiency. By building a well-supported team, you'll create a workplace where everyone can thrive.
Building a Scalable Business
Scaling your business requires a strategic approach and a willingness to confront challenges head-on. You can overcome the common obstacles that hinder growth by focusing on the above five strategies.
These strategies don't just address immediate issues—they lay a foundation for sustainable scalability. Whether your goal is to expand operations, increase revenue, or prepare for an eventual exit, implementing these solutions will ensure your business is ready to grow.
Ready to Build Business Processes?
Get in touch with the experts at Business Success Consulting Group! Set up an appointment to get your free initial evaluation. We are excited to be part of your scaling journey.
