You may have heard slight variations on this story over and over for decades.
The story starts with a founder who came out of a larger company. They knew the product, its technology and how to sell it.
They started the company and worked hard to win customers and deliver the product. Despite some setbacks they grew the company, often by 25% or more per year.
And then one year it stopped. Basically, sales just stop growing. They might be up a bit one year, but then they would be down the next year.
What happened? In virtually every case I have seen, the answer is the owner ran out of time. When a company starts, the owner touches everything and everyone reports to them. And that makes sense at this stage.
However, once a company reaches a certain point, something has to give.
No matter how hard a founder works, there are a limited number of hours in the day and only so many people they can effectively manage.
When this point is reached, the company stops growing. I have worked with several companies who have reached this point. But, when the company can make a few key changes, the sales have doubled in two years.
How? By creating an organization that the founder can trust, complete with the things you would expect: managers, meetings, plans, org charts, procedures and training. Gradually, the company is not completely dependent on the founder. The value of the company skyrockets. And the founder can take a real vacation!
Implementing these changes is how the tools of the Abunden app were developed.
If you are an advisor to companies like the ones I just described, visit www.abunden.com to learn more about our online tools and to sign-up for a free trial of the Abunden app.