Growing Your Business

Sustaining growth in today’s business world amounts to much more than just pursuing revenue goals. It requires vision, planning, communication and more.

By Joseph Carbonara, Editor-in-Chief -- Foodservice Equipment & Supplies, 8/1/2007

Joseph Carbonara

"Are you a business owner or a business grower?" That was the question Steven S. Little, author of "The Seven Irrefutable Rules of Small Business Growth," posed to the attendees of MAFSI's Annual Conference in Boston.

The subject matter of Little's presentation struck me as very appropriate for an industry fixated on top-line growth. That's because in his own entertaining way, Little provided a sort of road map toward long-term, sustainable growth. Following is an overview of Little's seven rules.

1. Have a sense of purpose. Sustainable growth is never about money or wealth accumulation, he said. Rather, winning is a by-product of achieving your purpose and about what causes you to get out of bed in the morning.

2. Develop outstanding market intelligence. Growth companies recognize and adapt to the forces of change that affect their markets in a proactive manner, Little said.

3. Effective planning. Document your growth plan and communicate it to everyone it impacts, Little said. Also, update the plan as the circumstances dictate. "It's not the plan but the process of planning that matters most," Little said. That's because the planning exercise forces one to cast a critical eye toward their business, competitors and the customers they serve.

4. Implement customer-driven processes. Everyone feels they are customer-driven, but are you really? It's important to remember that "the businesses you serve are really a series of people who carry out processes," Little added.

5. Put the power of technology to work. "Be an expert in the tools of your time and where they intersect with your business," Little added. Some people reading this might quickly jump to the conclusion that this point means companies have to be slaves to information technology. That was not Little's point. Rather, he thinks it's important to put technology to work for you to make your company operate "smarter, faster and cheaper."

At the same time, Little cautioned businesses to not allow their systems to make them stupid. To illustrate this point Little applies what he calls "The Milk Shake" rule. When staying at a hotel, Little will often call room service and ask for a milk shake. While rarely appearing on the menu, just about every hotel has the makings for a milk shake. They all offer ice cream and milk as individual menu items. And most have blenders somewhere on the premises, even if it's not in the kitchen.

But when Little asks for a milk shake, if it does not appear as a key on the point of sale system, the person taking the order will tell him it's not available. According to Little, this represents the classic example of an organization letting their systems make them stupid. If you have all the ingredients, why can't you package them up the way the customer wants? And if it's something custom, there's a good chance that you cannot only charge the customer extra but also bank some good will thanks to your flexibility and willingness to meet their needs.

6. Find, train and retain the best and brightest people. While this may seem like a no-brainer to some, Little encourages business leaders to ask, "Why do the best and brightest want to come work for you?"

7. See the future more clearly. In order to grow their businesses more effectively, leaders need to see into the future and understand how the trends of the day will have an impact on tomorrow.

Now, I realize that not every approach applies to every business. But I found many of the points Little made to be thought-provoking and, for that reason, worth sharing. If nothing else, I hope these comments get you to realize that sustainable growth is something more than just chasing a number.

Joseph M. Carbonara, Editor in Chief