Find a Viable Business Model
- The company never determines who their customers are and what those customers really want.
- A revolutionary product may be developed, but there’s no market for it.
- A small business is created that can’t scale into a large company because the market is too small.
- The company will hemorrhage cash if sales and marketing are scaled prematurely.
- There will be a lack of customers because no one is willing to pay for the product.
- The business will not be able to find a viable business model before it runs out of cash and fails.
Create Customers & Drive Sales
- The leader will be a bottleneck because there is only one decision maker.
- The company will lack direction as priorities constantly shift as an “idea-of-the-day” management style dominates.
- Efforts will be scattered, time and money will be wasted, and growth will be slowed.
- The company will not be able to grow beyond the individual capacity of its leader.
- The increasing workload will become unmanageable.
- Delays will be routine, critical milestones will be missed, and goals will have to be constantly revised because the company can’t execute.
- There will be too many priorities and too much time will be spent fighting fires.
- The business will be unable to gain broader market acceptance and fail.
Scale the Company
- Functional departments will move in separate directions; silos, politics, and even infighting will develop.
- It will become almost impossible to get things done because the company lacks structure and process.
- Products will become obsolete, new products will not meet customer needs, and competition will intensify.
- The organization will not have the right people in the right positions. The senior management team will be weak and ineffective.
- Chaos will grow: communication will breakdown, it will take more effort to get things done, and bottlenecks will develop.
- With every new sale, problems will increase and the company will be unable to consistently deliver high quality.
- The business will be unable to scale, sales will slow or decline, and the business will remain a small company or even fail.
- Investors or board will replace an ineffective leader who can’t make the changes necessary to get the company to the next level of growth.
Become a Market Leader
- The organization’s earlier success cannot be sustained and the company will begin to stagnate and lose focus.
- New competition will erode market share; revenue and profits will fall. The company will be in a weakened state and much more vulnerable to harmful market forces.
- The CEO will not be able to address strategic issues because internal matters are taking up too much time.
- Industry, market, and technological changes will happen faster than the company can keep up with them.
- There won’t be any new products available when existing products no longer produce the growth rates desired.
- The management team will be underdeveloped, creating bottlenecks throughout the organization.
- The company will become bureaucratic and lose the entrepreneurship necessary to drive further growth.
- The company will stagnate, decline, or fail.