Business - It Ain't Rocket Science

Reality Check

As a Vistage Chair and Executive Coach, I meet with a variety of business owners from small companies with three or four employees to very large organizations that staff hundreds. Almost all of these businesses started with one person who had an idea – a new product, service, better this or better that. Many were not the senior leader at their previous organization, but they had a burning desire to strike out on their own to bring their thoughts and ideas into the marketplace.

One of the themes I hear over and over in various ways is “my business is unique” or “we’re different.” My follow up question is always, “How so?” When we really get down to it, there really isn’t much difference – only scale.

Six Stages for Success

Here is what I know about building a company based on my learning from others, as well as my own experience starting three of my own. No matter where you are in the process, I believe there are six stages in a successful business evolution called the INGAGEment:

I – idea

In the beginning there was a stroke of genius, a brilliant flash of light, an unbelievable opportunity, an alignment of the stars, a catastrophic occurrence - or maybe it was just time! For most of us, there was a need in the marketplace that we felt we could serve - better, faster, cheaper, or any combination thereof. This is the "I" phase for Idea, when all of our thoughts start to crystallize. In this place there are no "f" words - fears, filters, forecasts. Simply words and thoughts of affirmation, bouncing around until we are convinced we are on to something.

Bang...we have a great idea worth pursuing. Then reality starts to set in…and we begin to hear doubts – the "wait a seconds" and “I'm not…enough.” They can come from anywhere in our lives – business or personal. Some are legitimate, some are not, but they do need to be addressed. Many leaders will never progress past these stumbling blocks.

N – name it…the game plan

How we address the “waits” and “I’m not” leads to the N phase – name the plan. To give us the highest chance for success we must put together a plan for our business. A viable plan looks at all the “what ifs” good and bad and develops a strategy to move forward with the highest likelihood for achievement. It is impossible to see all the events and forces that will occur, but the more we can identify and plan around what’s thrown at us the greater our chances for progress. A good plan is ever evolving and adapting to the changes around us.

G – game on

Once we've done our due diligence to implementation, we are ready to launch our business. GAME ON! Almost all companies are made up of three core parts that I call the basic triangle of business: Sales, Finance, and Operations. The typical owner leader is generally very good at one of the three functions, but rarely more. Most of us are not wired for all three. Traits that make us successful in one area can be a detriment in another, but reality sometimes dictates we play all three roles. This cycle can serve a new business for a very short period of time, but for a company that is reaching some level of acceleration it quickly becomes unsustainable.

A – adjust, adjust, adjust

Business is never static, it’s constantly ebbing and flowing across all sectors. What might be an upturn in one industry, market segment, or geography can be a downturn in another. We are continually adjusting to changes – some we can control and others we cannot. As CEOs our ability to remain flexible, agile, lean, and accountable leads directly to the success of our companies and putting the right people around us is key. We can build an organization to its peak performance and size by being purposeful.

G – growth

There it is – we begin to feel the growth phase in the business. Is it necessary that all the pieces be in place for this to happen? No. The right idea, service or product can jump start us right out of the gate. But as it grows, it becomes harder to sustain without the proper components lined up. This is where we start to see separation in leadership styles. The leader who tries to do it all themselves begins the cycle of slowing growth. The other type of leader has quickly learned and acknowledged their strengths and shortcomings. They have brought on people with expertise that corrects for their deficits. These leaders create strong teams and experience growth – no matter how it is defined. They make the right choices for today in order to survive and thrive in the future.

E – evolution

Hey growth-oriented leaders and their companies – pass go and collect $200! You’ve moved into the final evolution stage. You developed a product or service that the marketplace desires.

Now comes the time to continually ask the question, "What's next?” If you are really good at what you do, and you want to expand, it is imperative that new products and services do not dilute your value. In other words, be willing to invest whatever it takes – training, expertise, quality, time, etc. to ensure that you grow in reputation as well as revenue. A good idea poorly executed was not a good idea. That’s the beauty of Vistage – our peer advisory groups act as a CEO’s test kitchen for better decision-making no matter where you fall on the INGAGEment scale.

We never know what tomorrow will bring, but we can be prepared for it by understanding the cycle of building a business. To recap the “INGAGEment” model:

I – have a great idea. Will travel.

N – name it. Define it. Plan it.

G – game on. Follow your plan.

A – adjust, adjust, adjust. Tweak whatever requires it.

G – grow. Keep what succeeds, abandon what doesn't.

E – evolve. Become more valuable.

Contact me if you’re interested in specific examples of companies who’ve experienced successful INGAGEment. Vistage and its affiliates are in 20 countries with more than 23,000 members so I have no shortage of case studies.

About the Author: I draw from a background in corporate and private business to help fellow executives fulfill their potential as people and as leaders. I can be reached Tom.Grogan@VistageChair.com.