In an earlier blog, I set out the four main types of business person and promised more detail on what defines each type, why to some extent they are that way, and what might be done to change that. Here’s the last – high growth potential.
High growth potential characteristics
You are very clear why you are in business. It is to grow the business fast, as you believe that will produce a capital return far more than a good regular income.
You can be quite driven, and you care about the business, but you know that it is a means to an end, though your business life is still full of purpose.
Is this you, and if so, why are you like this?
Like many people, you may have had an upbringing which was a struggle, and you don’t want that for you and your family. You want to enjoy the fruits of your skill and effort, and you are clear what that means. You may, however, push on with the business past any likelihood of failure as you are still driven to escape your past.
You are good at the building a business, and you enjoy the adrenaline rush that each day brings. You measure yourself in terms that include money, but not solely money – you like the sense of achievement – “I made that”. You want a lasting legacy.
Strengths
Your main goal is to build the business, rather than look for an immediate return. So you tend to take the minimum out of the business to live on so that the business can grow faster.
Weaknesses
You go for it – building the business is the goal, and you put your heart and soul into it. Decisions are made quickly, to allow you to get on with growth, but may be made too quickly, with inadequate consideration of the wider implications.
It’s easy to focus on the growth and new opportunities and forget the need to ensure the foundations of people and processes are strong and renewed regularly. Fast growth brings its issues, and if your goal is to sell, you need to ensure that there is a credible, sustainable package to encourage a buyer.
Your personal life may suffer, so it’s important to share your goals with those you care for.
Opportunities
By building the business quickly, you may have the opportunity to sell it for a capital gain in the near to medium term.
Threats
If you are only concerned with an eventual sale, the best interests of the business may not be served. You may want to be open to a longer term strategy so that you have alternatives if a sale is later found to be unappealing for any reason.
Common pitfalls
You may wonder why your colleagues do not show the same vision and sense of urgency that you do. This may be because your vision of a sale is not theirs, as they may still want a job afterwards. Also, their objectives may not match with yours. The pace of growth may have outstripped systems and processes, and possibly, some of the people. Remember that a buyer will want a business that they can just walk into, so take care that you address this aspect. Build for the time when you no longer own it. There’s more help on growing a business in our videos.
Development routes
Engage your colleagues in your plans and the need for speed. For them, it may not be all about the eventual sale but may include the thrill of building the business and indeed knowing that they are doing good and useful work. Remember that they may well stay on after the sale, and their knowledge and commitment is something that affects the sale price, so ensure that you have fully understood their objectives.