MBA1392 What Does Growing Too Fast Look Like? + Free Ride Friday

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Hey there. Today is Free Ride Friday so hang on to the end of the episode to hear who won this week's Free Ride. Every Friday we give away a lifetime membership to one of our programs. We're giving away easy course, our 30 day course on how to build your own online course. It retails for $500 over at EasyCourse Co, but you can win it for free. Just leave us an itunes rating and review and you enter our weekly random draw. Just listen on Friday to see if you won. It's that simple. It's our way to say thanks for leaving us love on itunes. Alright, let's jump into today's episode. Hey O. Welcome to the $100 NBA show, your no nonsen podcast delivering daily 10 minute business lessons for the real world. I'm your host, your coach, your teacher Omar is at home. I'm also the co founder of the Hundred Dollar mba, a complete business training and community online. And in today's episode you will learn what does growing too fast look like? Many people ask what does that even mean? Having your business grow too fast? Isn't growth a good thing? Don't you want your business to grow fast? What are the downsides? What does it look like to grow too fast so I can be on the lookout? Well definitely. Growth is A great thing for your business and we all want it. But growing too fast means you're growing. When you're not ready to grow, you're not prepared for growth. What are the ramifications? What are the consequences to that? That's what we get into. And of course, what are the warning signs that you need to start preparing a little bit better so you can accommodate your growth. So let's get into it. Let's get down to business. We all want to see our business grow. More customers, more sales, more revenue. That's all positive stuff, all good things. But you have to prepare for growth. When you grow too fast, that means you're just not prepared. And what happens is instead of growing your business, you implode. How does that happen? Let's say, for example, you aggressively market to double the number of customers that are coming through your doors and they're coming in, but unfortunately they're not being served properly because your customer service team is overwhelmed. You haven't doubled your customer service team, so service quality is going down. Maybe that part time sysadmin to take care of your servers, she's now ready to take on all that kind of responsibility and traffic to your site. And you haven't upgraded your system. Maybe your inventory can't accommodate that kind of traffic, that kind of number of customers. So what happens is customers get disappointed, they leave and they don't come back. But worse, they tell other people of their experience. They tell other people, hey, this place. They don't take care of their customers. It's not professional, they're not ready, they're not big time. That is one example. The other example is when you do the opposite, you grow your team. Anticipating growth, you hire, hire, hire, and unfortunately, the customers don't come in and you're left with more expenses than profit, which leads you to implode and go out of business. You can't pay payroll forever without making more money. So the point here is, is that you gotta be ready for growth every step of the way. One of the best ways to do this is to tie the growth of your team, the growth of your resources, whether it's, you know, power or manpower, with your revenue, you can average out how much your salary is for each new employee. For example, if you say the average employee gets paid, you know, $6,000 every single month, then every time I'm making $6,000 more in monthly recurring revenue, monthly recurring sales, it's time for me to make the next higher. Tying revenue growth with company growth, team growth with will Allow you to accommodate and help you always be ready for the customers you need. If you know something's coming up, you want to invest in certain areas. For example, we know that we're going for a major launch for a new product, for example, and there's going to be an influx of customers who are going to buy that product. We need to make sure they're taken care of. So right now, maybe we're a little bit overstaffed on customer support, but it'll be just right come the time we launch. But of course, we don't do this at the expense of not being profitable. You have to stay profitable so you're never in danger. Danger of not making ends meet, not making payroll, and not seeing your business fold. This is why lockstepping your revenue growth with the hiring of your team members is a good model to follow. The reason why this is so important is because your reputation in the marketplace is priceless. It's very hard to clean up bad reputation when people have a bad experience. Many people, over and over, it's hard for you to get that trust back. And it's hard to clean up your name on the streets, right? People are talking about that experience. People are leaving reviews, people are leaving comments. People are on Reddit, people are on Yahoo. People are on Google, you know, reviews or comments, People are on Facebook groups, people are talking in person at conferences. So by doing this, you ensure you don't sacrifice quality. You make sure that everybody gets a great experience and you grow when you can, and you grow steadily. Unless you have millions of dollars in funding where you don't have to rely on revenue to grow, then this is the best way to do it. Many of us as entrepreneurs, we want to grow our team. We want to move forward faster, and we're impatient and we get carried away and we fall into that trap. Now you might be saying, hey, what if I do double my customers in the next few months? But right now I don't have the revenue to accommodate those customers. What do I do? Well, you have to shift resources. Then if you are building your product at some point or building your store or, you know, paying money for inventory, for your physical at some point, and now you're just marketing and pushing and selling, then you need to stop spending on inventory and stop spending on R and D and developing these products and start spending on service so you can accommodate that growth that you're expecting that you're going to be pushing for. It's a dance, It's a temporary switch. It's a temporary leaning on one area and letting go of another area. And this is the art of really self funding your business is knowing when to accommodate funds here and when to accommodate funds there. This also creates stability in your team. People feel comfortable when there are people that are on your team, have been there for 3, 4, 5, 10 years, right? They say this business is not going anywhere. This is a good place to work their stability. So when it comes to salaries, you got to be very careful. Don't hire anybody until you know you can commit to their salary. This is again why lockstepping your revenue with your actual hiring process is essential.

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To wrap up today's lesson. You want to make sure your business is here for the long run. You want to make sure that you're serving your customers at a high quality level consistently. You want to make sure that when you're growing, you feel comfortable with the growth, that you're prepared and your team grows with your company's revenue. This is the key to staying stable and having a successful business not only for your customers, but for you and your team. That wraps up today's lesson. Thank you so much for listening, but today's episode's not over. It's Free Ride Friday. Let's see who won this week's Free Ride. And the winner is Be a Hand Giggy. I don't make it up. That's the handle that they use on on Apple iTunes. Spot on. Five stars. Inspiring hands on useful content. I listen to Omar often because he doesn't hard sell buddies in the biz like many others do, which is really tiring. He gives worthy referrals to better your business well, thank you so much for that review. Be a hand Giggy. Your mission is to email me over at omar@100mba.net so I can hook you up with the free Ride to EZ course. If you want to win a free ride, just leave us an iTunes rating and review. That simple. You enter our weekly random draw. Listen in on Friday to see if you won. Before I go, I want to leave you with this Growing is fun. Growing is exciting. And it's a little bit scary. But it's also healthy to plan for growth. Plan how you're gonna grow even if you're just getting started and your revenue's low. That way, when it happens, you're prepared. You have a plan in place. I didn't do that early on in my entrepreneurial journey, and I wish I did. I was flustered when things started to move. So don't fall into that mistake that I did back in the day. Be ready when it's time. Thank you so much for listening and I'll check you in Monday's episode.

I'll see you then.

Take care.

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