3 Waves Of Growth

Let's talk about three waves of growth. How does growth work? What's the sequence? All right, let's look at this on a graph. On the left, the vertical, you have the amount. And then we've got our timeline. This is time. As we go left to right, we're going to start down here. Right now, we're not making any money and we're just getting started. So the clock is going to start ticking. Now the first thing we're going to do is we got to get more help. We need to get more people involved in this thing, otherwise we're never going anywhere. So the first thing you do is you take off, you get your recruiting going. That's the first wave of growth. Now, what recruiting does for you is allow you to come in here and get more done than you could do on your own. If you were going to do it by yourself, you might come in and that might be the most you could do. Probably the truth of it is, that's all you could do. But now you start adding people in, they start getting trained. It's going to take a little while, but pretty soon they're contributing. And you see now, wow, I'm getting a whole lot more done than ever before. Why is it? It's not rocket science. It's not a mystery. It is because you got more people in there. So that's why you want to start off with people. And you don't want to have slumps. You want to keep your program going so that you don't have to lose your momentum. You want to be able to keep your business growing. That's how stock prices go up. That's how your name recognition, that's how your income goes up. That can't happen if your business doesn't grow. It's not going to grow unless you get more people involved. The next thing that happens is let's move in and let's start training these people, get them contributing. But not just sitting in a cloud classroom. Let's get them involved in getting this product out to market. Or maybe if you're building, you're bringing them in, they can manufacture. So let's get these people trained. Let's grow this thing up here. Now you're getting them trained. Now you'll find, see, this line is the recruiting line. Let's just say it's a month into the project or whatever the recruiting may be all the way up here. You're just right here with your sales. However, that's the way it goes. It takes a while to get them operational, get them familiar, get them contributing, but pretty soon they'll lag behind. There's a sequence to these waves. They come in waves. So this is the second wave and this is where you're going to start building the profits from your business. Now how do you stabilize that and keep it coming on in, growing? Well, that's going to be by getting management promotion. So how are we going to get and stabilize this thing and keep it going? There's only so many people you keep over yourself. So you're going to take the best and brightest of these new people and you're going to get them to come in and move into management yourself. So these are your management promotions. The greatest thing about having more managers in there in terms of stabilizing your business, you want investors, you get a big company, small company. If you want to value your business the way you value it is not only your ID and your sales and things you've done like that, your facilities, but the main thing people want to look at is what's your management team look like? Who are the people going to be running this? If I buy, if I invest, I get involved in this thing, who's going to be running this thing for me? I don't want to have to come in and run it myself. So they're going to look at that management team. That's one of the biggest values you build. Now as your management team grows you. Here's the magical thing that happens. Let's say it goes line by line as it goes up. Let's just bring it on up here. Just imagine I did a bunch of little lines there. What this does is that raises the floor of where a slump could occur. In the beginning, when you started, you would go in, and if you started, you could slump and you might be all the way down here. But once you have, every time you add manager, you got more people involved, it would go down to zero because you were the only one working. But now once you have managers in, it's less dependent on you or any one of them. So the worst that could happen is going to be down here. Now also, by raising the continuing recruiting, you're raising the possibilities of the most that could be done. What you get is that your window of possibility goes up. Not only your sales go, not only the people go up, not only are you managing, but your range of potential sales goes up. Nobody ever can predict what you're going to sell in a given month, but it's a function of your people and your management team. So the More people you have on board, that raises the top side. The more managers you have, that raises the bottom side. That's how you grow the value of your business. Think of it like this. Say you have a great car and it's capable of going anywhere in the country. Well, it's only going to go as far as you have gas in the tank to allow it to go. So that's what happens in a company. You could have the greatest facilities in the world, but if you're understaffed, you're going to be limited. And you can't have extra hours. If you don't have staff that can come in and do the extra hours, you can't expand internationally. Let's say China opens up and you're your business. Well, you can't send people over there if you don't have the management team. So you can't expand where you are. And you can't expand and take advantage of new opportunities if you're not building the management as you go. So this is the idea of how growth occurs. The same idea goes in different areas of your business. For example, we could look at how you build your product base. First of all, you build your market right up here in this line. You are advertising. The second thing that you do, you know, the more you advertise, people are aware of who you are, what your product is, the more people are going to wind up coming in here and they're going to be buying that second wave of getting sales done. The third wave is repeat buyers. How many people. It's one thing to have people buy it one time and how many are buying it every month, regularly, consistently? Well, the more you have, the stronger your business. And that raises your ceiling of what you know that you're going to sell every month. The three waves of growth applies to management, your people also applies to the sale of your products. That's it. The three waves of growth.