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The Role of Leveraged Growth Fuel in Inexpensive Business Growth

By Jeff Bloch, Chief Growth Officer
With Tom Brennan, Senior Writer

Business growth

Part 4 in our series:  Business Growth: Rebuilding Your Business’ Engine for Tomorrow’s Race

In this series I’ve been making the case that the business landscape isn’t the same today as it was yesterday, and business growth requires new strategies and tactics.  Sound scary? See Part 1 of this series for tips on boosting executive courage. Have a look at Part 2 for the importance of leveraging social media, and Part 3 regarding making every one of your employees a part of the sales team through their social media footprint.

The good news is that there are new strategies and tactics that won’t put a huge dent in your P&L. Here in Part 4 I’ll share some cost-saving ideas executives can use to streamline their business for growth.

A “food chain” pay plan that inspires productivity

If you have a high-performance team, chances are each member embraces a “Me, Inc.” mentality — an entrepreneurial spirit and a belief that rewards are gained though effort and accomplishment. Consider implementing a variable pay plan based on individual performance and net profits. Essentially you’re creating a more direct correlation between revenue and expense. And as we’ve learned here at Decision Toolbox (DT), once you have compensation tied to performance and profits, you can give the employees the freedom to self-balance their work/life schedules for optimal employee engagement and inspiration.

Not every employee is cut out for this kind of plan, but at DT we hire professionals who appreciate the opportunity to be highly self-directed and enjoy a flexible schedule. We offer our Recruiters a “food chain” plan that has no salaries and all bonuses. They earn bonuses at certain milestones in any recruiting project — accomplish the goal, earn the reward. While the bonus amounts are set (to keep things somewhat predictable for everyone), there is an incentive. We track various performance metrics, such as time to present the first candidate, time to fill, client satisfaction score and others. The better the Recruiter’s metrics, the better her or his choice of new assignments will be.

 

Work ON your business, instead of always IN your business

The days of an Administrator for every Executive are long gone.  But freeing up your Executives to work “ON your business” instead of only “IN your business” is still critical.

An executive annual salary of $200,000 translates to about $100 per hour. Surely there are tasks on your Exec Team’s to-do list that could be handled by a less expensive resource.

You can “count on mom”.  Stay at home moms (and dads) that left careers to start their families have incredible skills and are thrilled to have part-time, work-at-home opportunities.  Let them free up a few hours a day from your Exec Team’s schedule.  Your execs will then have time to brainstorm about new products and services, develop relationships with key partners/clients, or engage in other game-changing strategic initiatives.

You can flex these inexpensive people resources up and down as needed, there is no overhead for equipment or benefits, and you may find a “star” whom you can promote to full time status. One trick I’ve learned is to analyze my to-do list every day to see what I can delegate.  “Where can I have the most strategic impact today and what needs to get handled by someone else?”

Keep your competitors close

I suggest you use a few of those freed up hours to reach out to C-level counterparts at your biggest competitors. Wait, hear me out — I’m not talking about violating the Sherman Antitrust Act, but about “comparing notes” with another thought leader in your industry. The cost of a lunch is much lower than the cost of market research. There often is opportunity to collaborate to your mutual benefits.

I’m running out of room in this post, but in Part 5 I’ll share a couple more leveraged growth ideas as well as future growth fuel.

To learn more about Decision Toolbox, please contact us – we’d love to hear from you!

Connect with Jeff on LinkedIn!

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One Response to “The Role of Leveraged Growth Fuel in Inexpensive Business Growth”

  1. January 13, 2014 at 5:06 am, More Leveraged Growth Fuel for Inexpensive Business Growth | Blog | Decision Toolbox said:

    […] the end of Part 4 of this series I promised a few more ideas for leveraged business growth — ways to drive […]

    Reply

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