Plan to survive the wobblies

Business plans require constant revision, even when they have been successful. Everything changes. Your goals change, your circumstances change and so your plan must change. It's significant change that I am now contemplating for my business.

Almost 3 years ago I was about to purchase my (now) advertising agency from its founder. I had drawn up a plan of attack for the agency's operation, turnover goals, profit goals and finally the lifestyle goals I hoped it would deliver. As regular readers would know, the agency was built around delivering me the lifestyle I desired first and foremost.

Approaching the 3rd anniversary of my purchase, I can confidently say that the plan has been a success. The business has been profitable from day one (although not without some occasional financial stress), it has more than doubled in size, and we are delivering some very good results for our clients.

Most importantly, my lifestyle has been fantastic. I am earning around 3 times what I was before I took over, I have purchased a new home, my health has improved out of sight, and I spend a lot more quality time with my family. The business has presented me with numerous opportunities to travel the world and enjoy numerous other perks.

In short, its been a very good 3 years.

However, now I believe its time to draw up a new plan. After rapidly arriving at our initial destination,  I fear that we are in danger of stagnating, becoming complacent and even going backwards. There is also a risk that I will steadily lose the freedom that I have worked to achieve. In fact there are signs that it is already beginning to happen.

Our growth has steadied, and as a result changes are more subtle. I have found myself drawn into the daily operations more and more of late. The demands are coming from both sides of the business - account management / new business and creative. I feel I am beginning to drift away from my original personal goals and becoming more a part of the machine rather than the driver.

Its time for change. Time for a new 3 year plan.

The next phase of my business will involve aggressive growth. It won't be growth for growth's sake, or growth to satisfy my ego and be the biggest in my field. It will be aggressive because the business needs to push hard to reach the next acceptable stage of its existence. All businesses go through what I call "wobblies". These are inevitable periods of difficulty that arrive after growth. As the business matures and settles it must look to invest in the future. This often means a new round of expense as more staff are hired,  larger premises are required and a certain amount of discomfort endured.

Aggressive growth is usually required to push through the "wobblies" and  begin a new trajectory of success. Otherwise businesses can become stuck in the "wobbly" cycle for years, making half-hearted efforts to escape but never really pushing hard enough to break free. I have seen it in every business I have been associated with over the years, and inevitably I can see it now in my current business.

To escape the "wobblies" usually requires very honest appraisal of resources. That includes the owner. Are the current resources being used appropriately or do new resources need to be enlisted?

In our case, I believe we need to hire more staff. Not to service the current business, but to create and service new business. The right person will force significant change. The introduction of several big new clients will force me to hire a few more staff. It will force me to change the job descriptions of existing staff in order to become more specialised after 3 years of being jack-of-all-trade employees. Some staff will resist this change. I will also be then forced to look at larger offices and more equipment.

As you can see, this could be an expensive cycle. To have some success and invest so heavily  could actually be dangerous. I need vigorous growth to afford the changes that a small amount of growth will require, otherwise will will be stuck with massive overheads and not enough income.

Finally, I have to be very clear about where these changes will leave me personally. Will I be doing what I really want to do?

I have already made my decisions. I am going to hire a "rainmaker", a proven performer who can deliver the bigger clients we need to leap into the next phase. I am going to set ambitious growth targets that will see us as the 2nd largest player in our market within 3 years. This is not for ego or bragging rights, its just the level we need to get to safely navigate the investments in staff and overheads we will require. I don't really care about being No.1 in my market, not for the sake of it anyway.

I will realign all of my existing staff into more specialist roles, most suited to their abilities. I will become more focussed in my own role in the business too, concentrating on the aspect I enjoy the most and which I believe will be best for the business - writing and strategy.

I may have a period coming up where I won't have quite the amount of freedom I have had for the last year or so, but I believe that in the longer term I will actually increase the amount of freedom I have. 

I need to push through the "wobblies" to secure my business and lifestyle. Lets see if it works.

Comments

[Donella]

I am so inspired by this amazing website and hope to launch my first real expo July 27, 2008.
Bootstrapping and working part time to pay the basics.
This is not an exotic lifestyle from the outside, yet so exciting on the inside.
Thanks for the inspiration!
Donella