CRACKED FOUNDATIONS: THE HIDDEN REASONS YOUR BUSINESS MAY NOT BE GROWING (DESPITE YOUR BEST EFFORTS)
Written By Jessica Murray
It’s an uphill battle to grow a business that’s broken from the inside. Oftentimes, I’ll hear entrepreneurs say they have a marketing, sales and/or product problem. They lean toward that conclusion because there are signs of:
A sales velocity slowdown.
A decrease in lifetime value.
A decline in foot traffic.
Increased acquisition costs.
Sometimes, the conclusion is right. In other instances, it’s a misdiagnosis. What then happens is swift action to rebuild a sales team or double down on marketing spend, only to see the same, or worse results. Then, after a lot of time, dollars and headaches, the team is forced to evaluate deeper what’s going on, deconstructing processes, customer journeys and ways of working to pinpoint the bottlenecks and chinks in the chain.
The “Aha moment”
That moment when you finally discover the real problem brings both relief and frustration. Relief that you've found the issue, but frustration that you've spent months fighting the wrong battle:
The thing that appeared to be a sales problem ends up really being a customer experience problem.
Goals get missed because the team's work isn't aligned with what you perceive to be the most important priorities.
Marketing efforts may seem less efficient, but a bigger inventory issue impacts your ability to deliver to customers.
Customers aren't returning because the experience you deliver is inconsistent and unreliable.
I get it. It’s demoralizing to miss targets quarter after quarter. It’s tough to see the negative reviews. It’s scary to watch the cash reserves drain. You feel the impulse to take action drive more new money in the door.
A quick diagnostic framework to help
Before diving straight into the deep end of revenue-generating activities, consider the root causes of what’s holding you back first.
There are many approaches to diagnosing the true causes of growth challenges. One framework I’ve referenced in Empower’s newsletter here and here is the Five Whys.
If you’re embarking on this path of discovery, I encourage you to revisit it. You’ll probably be surprised by what you uncover.
The cracked foundation
You can hire as many salespeople as you want. But, if you can’t deliver high-quality products and services to customers on time and to expectations, growth will still suffer.
If you have big aspirations but feel stressed because you’re being held back, consider this:
Can you effectively build a sturdy multi-story house with a cracked foundation?
No.
You might be able to build for a while, but you’ll only add new problems and amplify old ones. The more you try to build on top of that faulty foundation, the more risk you’re adding and the house likely won’t withstand its first big test. Worse, the cost of repairs will be much higher than if you addressed the problem at the first sign of a crack.
Similarly, you can’t expect to sustainably take your business to new heights if you don’t mind fundamental aspects of your operations. The weight of growth will eventually expose the weaknesses and cause structural failures, whether that’s:
A sudden spike in customer churn.
Reputational damage.
Uneven and unpredictable cash flow.
High employee turnover.
A flawed supply chain.
You feel the difference in a business with streamlined operations. There are fewer fires to put out, a consistent rhythm, higher customer trust, a dedicated employee base, and more.
Taking the next step
I know revenue and the activities that drive the business's top line are “sexy.” I know cash is king. But before building upward, make sure those foundations are stable. Invest in repairing operational issues sooner so they don’t cause even more pain when you need them least.
Your business deserves a chance to thrive, so give it the tools to do so. The encouraging part? Much of the internal stuff is within your sphere of control and influence. Tighten up the ship and the rest will follow.
If tackling all this feels overwhelming, and your team already has too much on its plate, Empower can help. Reach out and learn more about how we’re supporting business owners facing similar challenges.