View Full Version : How does a company grow?
11-28-2008, 09:27 AM
Of course service, pricing, good employees, and many other factors are all key elements in growing your company successfully, but how does a company go from sales, lets say, up to $1,000,000 per year to sales of 60-70 million per year? Up to a million seems easy with slow steady growth over a few years, but is there a breaking point where you realize you can open another branch or a nursery or invest in 80k worth of new equipment to start another crew? Or is it all just hard work, dedication, and constant balancing of cash? Basically, how do the big guys get big?
11-28-2008, 10:11 AM
Replication is your answer. They get big because the company is not dependent on the owner to make each and every decision over and over again. They must be able to produce a consistent result over and over again without having "the best" A systematized company can deliver this repeatedly. Check out my E Myth thread for more systems info. It is just down the page here in the Business section.
My old boss, Dale Mecitic is the president of Grounds Control. His company,Terrain Systems was bought by Grounds control several years ago. He has a open checkbook to buy any company he wants and they want him to be buying. I asked him what do you look for to consider buying? He said they must have done 10 mil a year for at least 3 years. Why was my next question. Because they have to have solid systems in place and be following them to a great degree to consistently achieve that kind of revenue. You can't fly by the seat of your pants in the L/S industry at that kind of volume.
11-28-2008, 06:43 PM
It would be my suggestion to get to one million first, as that can easily take more than a few years.
11-28-2008, 07:35 PM
My theory is that business can be exponential when managed by the right person/people. Every step up makes it that much "easier" to gain a few more steps. The more capabilities you have/aquire, then the better it is.
Put it this way....
Somebody making 50K a year ..... its hard for them to double to 100k overnight.
Somebody pulling 500k a year could much more easily add 50k in business.... more like 200k.
It takes money to make money... more you invest the more you make. Therefore, invest every bit of youself and your money into your company at all times and don't stop. 100% business all the time, no time for play, WORK. It'll pay off if done properly and consistently.
11-28-2008, 07:45 PM
Great clientel,Great employess,Correct pricing,Making profit, all of these are Key Factors in creating growth for any company!Remember In busiess ya have to do something creative that the next guy isn't doing , Be the leader of the pack! Have fun George
11-28-2008, 10:40 PM
how does a company go from sales, lets say, up to $1,000,000 per year to sales of 60-70 million per year? ... Basically, how do the big guys get big?
Good to Great
Built to Last
Both written by Jim Collins.
Read them, but focus on the principles AZ mentioned first.
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