Do you want to grow your existing business or build a business from scratch? The question I get asked most often is how do people go about doing that?
Hello, my name is Doug Barra. In this video, I will share with you some principles that I found are vital in building a business from scratch, growing your existing business, or simply navigating the entrepreneurial path. Many things need to be done for people to achieve their goals when it comes to growing an existing business or building one from scratch. However, there are principles of growth that can make the process much more successful and easier for anyone trying to succeed in this endeavor.
One of my favorite books is “Good to Great” by Jim Collins. In it, he talks about the Hedgehog Principle and the Stockdale Paradox. As part of the book’s business growth principles, the Hedgehog Principle is how do you find something that you can be passionate about and turn into a great success. The Hedgehog Principle works because of three things.
First, all businesses need to know what they’re good at. Second, they have to exploit those areas in which they are already successful. And third, avoid anything where there’s no profit. It seems simple enough, but as a small business coach for many years now, I found that most people don’t understand these concepts in depth. So instead, they will either try to grow their company by working longer hours or getting more customers.
When neither of those work, if you want your business to grow successfully over time. Without the proper structures in place, this will result in constantly putting out fires and hiring more and more help to try and keep up, which will kill your profitability and probably leave you feeling chained to the business.
The other principle that Jim Collins talks about is the Stockdale Paradox, which I love because it makes sense of commitment to your business success. We hear from people all the time, who’ve been in business for a while, that talk about how they’re not committed or it’s just going okay, but nothing fantastic has happened yet. That lack of commitment can be worse than simply committing yourself to something you even know won’t work out well, such as working painfully long hours.
The key takeaway from the Stockdale Paradox for me is that when you are really committed to something and you are prepared for the negative, you can weather a lot of storms. In business, you need to be prepared for the times when things are tough and not give up. As Jim said, “you must retain faith that you will prevail in the end, whatever the end may turn out to be.”
To sum it all up, if you want your business to grow successfully over time, without constantly putting out fires and feeling chained to the business, then I recommend applying the basic principles which have been tested over time by some of history’s greatest entrepreneurs. Like Henry Ford, who built his business from scratch into an empire, or Sam Walton, who also went on to build a massive company based upon his own hard work ethic and commitment.
So what do we take away from this? First off, commit yourself 100% because you are worth it. Second, do what it takes to be successful and know where the pitfalls are. This is just a small sample of what’s available from being part of our Inspired Entrepreneurs Community.
I’d love to know what value you got from today’s video or what questions you have. Leave me a comment. I look forward to reading what you have to say.
Once again, I’m Doug Barra. And now it’s your turn. Click the link, get yourself registered into the community to start on your journey to real wealth. And I’ll see you in our next video.