Post on 28-Nov-2014
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Making the Leap from Entrepreneurship to Large Company
Virginia Ginsburg, MBA
Entrepreneurial Business
Founder/ Entrepreneur
Salesperson
Salesperson
Salesperson
Warehouse Manager
Worker
Worker
Worker
Collections/ Receivables
Bookkeeper
Lawyer
Marketing Asst.
Receptionist
Ordering Repair/ Maintenance
Professionally Managed BusinessPresident
Financial Manager
Operations Manager
Warehouse Manager
Worker Worker
Worker
Receptionist Repair/ Maintenance Ordering
Sales/Mktg Manager
Salesperson
Salesperson
Salesperson
Marketing Assistant
General Manager Lawyer
Survey of Organizational Growing PainsA B C D E
Growing PainTo a very great extent
To a great extent
To some extent
To a slight extent
To a very
slight extent
1 People feel that there are not enough hours in the day X
2 People spend too much time “putting out fires” X
3 Many people are not aware of what others are doing X
4 People lack a understanding of where the firm is headed
X
5 There are not enough good managers X
6 People feel that “I have to do it myself if I want to get it done correctly
X
7 Most people feel that the firm’s meetings are a waste of time
X
8 When plans are made there is very little follow-up, so things just don’t get done
X
9 Some people feel insecure about their place in the firm X
10 The firm has continued to grow in sales, but not in profits
X
Scoring
11 Add the total number of responses in each column 2 3 1 3 1
12 Multiply the number on line 11 by the number on line 12 and record the result on line 13
5 4 3 2 1
13 Result of line 11 times line 12 10 12 3 6 1
14 Add the numbers on line 13 in columns A-E and place the result on this line 32
Interpretation of Organizational Growing Pains Survey Scores
Score Range
Color Interpretation
10-14 Green Everything OK
15-19 Yellow Some things to watch
20-29 Orange Some areas need attention
30-39 Red Some very significant problems
40-50 Purple A potential crisis or turnaround situation
Top 5 Signs of Speedbumps
1. Revenue is fluctuating around a single point
TIME
REVE
NU
E
$3M
$2.8M
$3.2M
Top 5 Signs of Speedbumps
2. You spend all of your time “putting out fires”
Top 5 Signs of Speedbumps
3. There aren’t enough hours in the day, but you aren’t exactly sure what your employees (and you!) are doing every day
Top 5 Signs of Speedbumps
4. If you want something done, you have to do it yourself
Top 5 Signs of Speedbumps
5. When plans are made, they are seldom implemented
Speedbump OptionsTipping Point
TIME
REVE
NU
E
Grow/ Professionalize
Sell/Close/ Walk Away
Downsize
Do Nothing
Speedbump Options
Grow/Professionalize
Sell/Close/Walk Away
Downsize
Do Nothing
Action
You make the changes needed to get to the next
level of business
You realize that you don’t want to change, so you sell or walk away from your business
You don’t want to make significant changes, so you
downsize to a comfortable level
You make no significant inroads in professionalizing
your business
What it Means
You make a lot more money
You get out of a business that’s driving you crazy
You go back to a place in your business at which you were comfortable and stay there
You don’t have to change the way you work
Benefits
It’s hard to grow up, and you will have to invest time,
money and a lot of effort
You may need to start another business or get a job
to maintain income
It’s hard to grow down, and you will likely have to lose employees and customers
Running a business like this is a draining nightmare and will
lead to burnout
Drawbacks
Growing and Becoming a Professionally Managed Business
Corporate Culture
Management Systems
Operational Systems
Resources
Growing and Becoming a Professionally Managed Business
1. Acquire Resources– Financial– Human Capital– Physical Space– Equipment– Technology
Corporate Culture
Management Systems
Operational Systems
Resources
2. Develop Operational Systems– Accounting/Billing/
Collections– Marketing/Sales– Hiring/Firing/Training– Research & Development– Production– Information Systems
Corporate Culture
Management Systems
Resources
Operational Systems
Growing and Becoming a Professionally Managed Business
Growing and Becoming a Professionally Managed Business
3. Develop Managerial Systems– Planning System– Organizational Structure– Management
Development– Performance
Management– Production– Information Systems
Corporate Culture
Management Systems
Resources
Operational Systems
Growing and Becoming a Professionally Managed Business
4. Manage the Corporate Culture– Values– Beliefs – Norms
Corporate Culture
Management Systems
Resources
Operational Systems
Keep it Entrepreneurial!
Virginia Ginsburg, MBATel: (310) 453-7008
Email: vginsburg@SwellStrategies.com