Grow Your Business with the Right People

grow your businessDo you want to grow your business? If you do then you must have the right people. In Jim Collins book “Good to Great” he says you have to make sure that “the right people are on the bus”. This means that you as a leader must know the strengths and motivation of each person on your team, as well as how the individual impacts the performance of the team. Recognizing a person’s talent and then managing it creates a motivated and engaged workforce. Failure to hire the right people for the jobs and not putting people in positions where their talent can soar is a waste of a company’s resources. Southwest Airlines set itself apart from the industry by hiring and developing people who are a natural fit for the company and the jobs they were hired for. The result has been an engaged workforce, low turnover and great customer loyalty.

Let’s look at how having the wrong people in place can cost your company dearly even at entry level positions. I was with a friend waiting in line at Starbucks as he was paying for his $8.00 grand latte supreme. The young woman at the cash register said, “That”ll be $8.00 please. Boy that’s expensive!” In that moment of truth my friend looked at me and said with a chuckle, “She’s right.” He paid and left with his prized coffee. But he stopped going there deciding his coffee money was better spent at 7-11 at $2.00 a pop. Situations like this are as preventable as they are unfortunate. The right person with the right training would never have made this comment. The right people will help you grow your business while the wrong people will sink it.

Marissa Levin, CEO of Information Experts has grown her $15 million award winning business through hiring the right people. Levin explains her company secret to hiring , “When we look at employees, there are three things that we have to look at. And this is a rule of thumb pretty much for everybody, any organization. It’s called the GWC Principle. Do they get it? Do they want it? And do they have the capacity to do it? So as we look not only at new hires, but at the existing people as we shuffle them around and reorganize and grow, we have to look at people and say, “Do they get it? Do they really get what they’re supposed to be doing? Do they want it? Do they have the passion for it? And do they have the capacity? Do they have the physical capacity, the intellectual capacity, and the emotional capacity? Whatever the capacity may be, do they have the capacity to do it?” And not all employees in every position are going to have the get it, want it and have the capacity to do it factor.” Use the GWC Principle to grow your business.

To grow his cloud hosting business Matthew Porter, CEO of Contegix pays a finders fee to employees of $20,000. He puts his money where his mouth is because he understands that without the right talent his company won’t grow. How much is the right employee worth to help you grow your business?

In a competitive marketplace having the right human capital is critical to surviving and ultimately thriving. Make sure that you spend the needed time, energy and thought to hire and develop the right people to grow your business.

Grow Your Business with Customer Knowledge

If you want to grow your business start by taking a close look at your customers. Not only are they the key to your growth what you don’t know about your customers is putting your business at risk. Why? Because market trends and customer needs are changing more rapidly than ever before. If you don’t know who your ideal customers are, as well as how, when and why they are motivated to buy, you can’t position your solution to uniquely satisfy their needs. 

When your customers’ needs shift how quickly can you re-align your company to serve those needs? If you don’t take care of your customer someone else will.  Just a few years ago BlackBerry was the Smartphone industry leader with 43% market share. Today they trail both Android and Apple with a market share of  less than 10% and dropping.

Borders failed to recognize the importance of selling books on line and paid the steep price of going out of business leaving 11,000 employees without jobs.

Knowing who your customer is and being close to them isn’t enough in the New Economy. Companies like ITW have emerged successfully from the Great Recession because of their understanding of their customers. As Bob Hamilton, Group President for ITW explained,” The most important thing for us regardless of what market we’re in is we need to know our customer better then he knows himself. And we need to not only be close to that customer we need to be able to predict what he’s going to do.”

To survive many businesses have resorted to discounting, coupons and promotions to attract customers. What they found the customers left as soon as the promotion ended or the coupons expired. They didn’t gain customers they merely leased them. This is not a long-term sustainable strategy. Because you can’t grow your business with leased customers.

Sometimes the best way to grow profitably is to know who you are and who you’re not. Irwin Steinberg has steadily grown his CPA firm Steinberg Advisors by focusing on what his ideal clients want and need — business advice. Steinberg explains his firm’s business model,” …a lot of CPA firms have a lot of product lines. We don’t have the same product lines that they do. We have business consulting, valuation, accounting and tax. We’re not in the IT business. We’re not in investment banking. We don’t manage money for our clients.” Instead of dissipating his firm’s resources by offering services his ideal customers don’t value and don’t want, Steinberg focuses on what they do value and his firm can deliver. What are you relying to grow your business?

If you want a road map to grow your business  identify your ideal customers, make sure you know them well enough to predict their behavior and then give them what they want better than anyone else.