"If you don't know where you are going, every road will get you nowhere." Henry Kissinger

That quote perfectly exemplifies where my brother and I were five years after our parents retired from the business. We had spent those years working hard yet had little to nothing to show for our efforts; the business was stagnant. One evening at dinner, a mentor bluntly asked us what we planned to do with the business our parents had handed us. Were we going to squander it like many second-generation owners or were we going to build on the foundation given to us to create something even greater? He challenged us to realize our potential to double the size of our business and then double it again. Shortly after that conversation, we set a Big Hairy Audacious Goal - a goal that was genuinely 10 times from our current state. If you want to grow, it starts with having a big, inspiring, long-range vision. 

"In most organizations, the bottleneck is at the top of the bottle." Peter Drucker

The first place to look to determine if your business is ready to grow is yourself. I have found that when the business gets stuck, I need to look in the mirror to find the root of the issue. The ability of the business to grow is directly related to my own capabilities as a leader.

The best advice I have heard is that successful business owners need three things: 

1.    A coach
2.    A peer group (i.e., YPO, EO, Vistage.)
3.    A business operating system (Pinnacle, EOS, Scaling Up. )

Coaches and peer groups will help you grow as a leader. I have effectively used both to accelerate my leadership journey. A business operating system provides the structure and systems needed for growth.

I have made plenty of mistakes along our growth journey, especially around people. The same people who helped you grow your business to this point may not be the same people you need to grow your business to the next level. To grow, you will need to either change the people(help them grow) or change the people (hire someone new). 

As a supplier, I bring a unique perspective to the discussion of growth. A great supplier partner can assist you with your growth plans and provide needed resources and advice. Additionally, communicating your growth forecast will allow your supplier to plan accordingly and ensure a steady and efficient supply of the products you need. 

Growth brings new opportunities and new challenges. The checklists below will help you gauge whether you and your company have the foundation in place to tackle growth.

Questions to ask yourself:

1.    Am I emotionally and mentally prepared to "let go" and delegate responsibility to others?
2.    Do I have the capacity to take time to work "on" the business every week?
3.    Am I clear WHY I want to grow? A powerful "why" will overcome any obstacle.
4.    How will growth impact my work-life balance and personal life?
5.    Do I have a strong support system in place, both personally and professionally, to help me navigate the challenges of growth? (e.g., coach and peer group)
6.    Am I willing to invest in my own personal and professional development to better lead a growing organization?
7.    Do I have the resilience to handle potential failures and setbacks?
8.    Am I prepared for the long-term commitment required to achieve and sustain growth?
9.    Do I have a clear exit strategy or end goal in mind for the business?

Here is a checklist to determine if your business is ready to grow:

Comprehensive Business Plan:

1.    Do we have a clear ultimate goal or vision (Pinnacle) for our business?
2.    Have we defined our strategic objectives and milestones for the next three years?
3.    Do we have a detailed action plan for the upcoming year?
4.    Do we have a 90-day cadence to review our plans and set  priorities for the coming quarter?

People

5.    Do we have the right people in the right seats throughout the organization (Over 80% "A - Players")?
6.    Do we have a plan to recruit or train the necessary staff?
7.    Have we developed an organizational structure with clear roles and responsibilities for the next year?

Financial Metrics:

8.    Do we know our Self-Financeable Growth Rate (SFG)?
9.    Do we know how much capital we will need to invest? (e.g., Trucks, inventory, tools.)
10.    Do we have adequate cash reserves to support growth beyond our SFG and for capital investments needed for growth?

Budget and Forecasting:

11.    Do we have a detailed budget forecast for the coming year?
12.    Have we identified the resources needed (additional employees, marketing, trucks, tools, inventory) to achieve our plan?

Operational Playbook:

13.    Are our standard operating procedures (playbooks) documented and simplified?

Customer Base:

14.    Do we have a solid existing customer base measured by active maintenance agreements?
15.    Do we know who our target market customers are? (Our Ideal Customer)
16.    Do we know what differentiates us from our target customers?

Leadership:

17.    Does our management team have the leadership capacity to handle the growth?
18.    Do we have a high level of trust and rapport on the Leadership Team and throughout the organization?

Supplier Relations:

19.    Do we have reliable and productive relationships with key suppliers?
20.    Have we discussed our growth plans with our key suppliers?

Even the smartest and savviest of us in the business look for that magic moment or silver bullet that overcomes every obstacle we face in expanding our business. Yet we know intellectually and in our bones that it doesn’t exist. 

Spend some time reviewing these suggestions, and implement or prop up any weaknesses. If you follow through, I suspect that your next growth spurt will be a surprise. 

Ryan Kalmbach is the CEO of Johnstone Orion Distribution with 12 locations and 125 employees in California. He has more than 20 years of experience in operating a family distribution business. The core passion at The Orion Group is to partner with its customers and employees to help them to grow. Contact Ryan at https://www.powerofjsog.com/.