Scale & Grow

As a business leader, you’re often expected to have every answer at your fingertips. Whether leading a senior team strategy session, onboarding new suppliers, or fielding questions from customers, the expectation is clear: you should know it all. However, this expectation is neither practical nor sustainable, and many leaders grapple with imposter syndrome as a result.

Understanding Imposter Syndrome in Leadership

Imposter syndrome for business leaders tends to surface during periods of growth, particularly at a point often called the “ceiling of complexity.” This is the stage where tried-and-true strategies no longer yield growth, and you’re tasked with guiding the organization to the next level. It’s natural to feel as though you don’t have all the answers. In fact, the habits, practices, and mindsets that carried you to this point can often become limiting.

Why Imposter Syndrome Isn’t a Weakness

Imposter syndrome might feel like a weakness, but it’s actually a sign that you’ve reached the limits of your current mindset and practices. The feeling of inadequacy often arises because much of a leader’s methods have become second nature and are, therefore, difficult to analyze or change. Embracing these doubts can be the first step toward identifying new paths for growth.

Overcoming the Imposter Mindset by Seeking New Perspectives

To overcome imposter syndrome, it’s essential to recognize that your limitations aren’t a reflection of your worth but simply the natural boundaries of your current skill set. Being open to feedback and new ideas, both within your team and from outside mentors or industry networks, can illuminate new paths forward. Engaging openly with others without fear of judgment allows you to remain a capable leader while exploring new strategies to lead confidently.

Embracing Vulnerability for Growth

The path to overcoming imposter syndrome is through vulnerability. Ask yourself and others, “What needs to change to reach the next level?” By allowing vulnerability, you foster an environment where learning and growth become priorities, not just for you but for your entire team. Opening up to these questions enables growth and can keep the journey exciting and filled with fresh learning opportunities.

Imposter Syndrome as a Growth Catalyst

Ultimately, imposter syndrome isn’t a roadblock; it’s a signal. It’s an indication that you’re ready to step beyond your current limits. As you expand your skills and adapt to new challenges, your business will naturally grow alongside you.

Imposter syndrome, rather than being an obstacle, can be an invitation to grow and evolve as a leader, pushing your business to new heights. Embrace it and use it as a springboard for continuous improvement, both personally and professionally.

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The Power of Purpose: Why Every Business Needs It

In today’s ever-changing business landscape, purpose has become a buzzword—so much so that it has lost much of its meaning. But if you strip away the trendy jargon, what remains is a simple yet profound question every business must answer: Why does your business exist? And more importantly, what right does it have to exist?

For many entrepreneurs, the initial reasons behind starting a business vary. Some may say they began their venture to create financial security for themselves, while others might boast about having exceptional products or deep loyalty to their employees, particularly in family-run businesses. Yet, when faced with the hard question of why their business truly exists, these answers often fall short.

Why Purpose Matters

At its core, purpose is more than a personal goal or a well-designed product. Purpose is about solving a problem for your customers and creating a meaningful experience for them in the process. This is the key reason any business exists—because customers are seeking solutions to their problems. Whether they’re buying a high-performance sports car or employing a cleaning service, they are ultimately paying for a solution, not just a product.

Take, for instance, a business that sells luxury cars like Maserati’s and Ferraris. On the surface, it may seem like their customers are simply indulging in a “fancy.” However, upon closer inspection, these cars are often seen as alternative assets that appreciate over time—thus solving the problem of finding valuable investments. The purchase is less about luxury and more about smart financial planning.

The Experience Factor

Besides solving a problem, the other key factor driving a business’s existence is the experience it offers. A great customer experience can turn a one-time buyer into a loyal client. This applies across industries, from the sale of sports cars to more mundane services like cleaning companies or real estate agencies.

Consider a disaster recovery cleaning business. Initially, their purpose was clear: they helped companies recover from floods, fires, and chemical spills. But after reaching a certain level of growth, they found themselves stuck, struggling to differentiate from other cleaning companies offering similar services. What they discovered was that their true purpose lay in providing an exceptional experience for their clients—particularly those in the food industry, where contamination prevention is critical. By narrowing their focus and creating an impactful experience, they reinvigorated their growth.

How to Use Purpose

Once you’ve identified your business’s purpose, the next step is knowing how to use it. Purpose should be at the heart of every communication you send out. It informs your marketing, your team’s motivation, and how you engage with customers. When people understand that you are solving a specific problem and creating an experience around that solution, they will see your business as purposeful, not just another company trying to make a sale.

Purpose also resonates at a human level. When your employees understand the broader impact of their work, they feel more motivated and aligned with the company’s goals. For example, the disaster recovery company that shifted its focus to preventing contaminated food in laboratories saw a remarkable change in employee engagement. Workers understood that their efforts went beyond cleaning—they were actively protecting public health. This sense of purpose helped the company grow and unify its team.

When starting a business, many people envision a smooth, uninterrupted path to success. The expectation is often that after acquiring a few customers, the company will naturally grow, eventually reaching the heights of financial success and market dominance. However, this idealized view of growth doesn’t match the reality for most businesses.

The Misconception of Linear Growth

Business growth is often portrayed as a simple, linear process in presentations and business plans. These charts typically show a smooth, rising line, implying that growth is steady and predictable. However, this perception is fraught with problems:

1. Unsustainable Growth: Rapid growth without proper planning can be unsustainable due to limited time and resources. Businesses can quickly become overwhelmed, leading to burnout and operational inefficiencies.
2. Increased Complexity: As a business grows, the complexity of managing resources, coordinating activities, and ensuring smooth operations increases. This can lead to challenges in maintaining quality and consistency.
3. Unprofitable Expansion: Constantly pushing for growth without considering profitability can result in a scenario where the business is always “burning to earn.” This approach can lead to financial instability and, in extreme cases, bankruptcy.

Sustainable Growth: A Structured Approach

Sustainable growth requires careful planning, adequate resourcing, and consistent measurement. Here are some key strategies for achieving this:

1. Grow in Steps: Just like a staircase, business growth should involve periods of consolidation (the tread) followed by periods of expansion (the rise). This allows for the business to strengthen its foundation before taking on more significant challenges.
2. Grow Like a Body: Think of business growth as similar to physical growth. There are periods where energy is focused on increasing height (revenue and customer base), followed by periods where energy is directed into strengthening the structure (operations, systems, and processes). This cycle repeats, ensuring that the business is not only growing but also becoming more robust and resilient.

The Importance of a Strong Foundation

One common mistake among business owners is to focus solely on scaling and revenue growth without first ensuring that the underlying foundation is solid. This foundation includes:

• Processes and Systems: Developing efficient processes and systems that can handle increased workloads without compromising quality.
• Resource Management: Ensuring that there are enough resources, including time, money, and personnel, to support growth.
• Capacity Building: Building the capacity to handle growth, which includes both physical resources (like machinery and infrastructure) and human resources (training and developing employees).

Measuring and Managing Capacity

To manage growth effectively, it’s crucial to measure the capacity of your business accurately. This involves understanding the limits of your equipment, the capabilities of your team, and the overall operational capacity. For instance, if a machine can produce 10,000 units a day, pushing it beyond this limit without additional resources will lead to inefficiencies and potential breakdowns. Similarly, understanding the workload of your employees and ensuring they are not overburdened is essential to prevent burnout and turnover.

Creating Systems for Independence

For a business to thrive, especially as it scales, it must be able to operate independently of its owner. This means creating robust systems that can function effectively even when the owner is not present. Small business owners often focus on growth and revenue without developing these systems, leading to operational challenges and inefficiencies.

Growing a business is more than just acquiring customers and increasing revenue. It involves building a strong foundation, planning for sustainable growth, and managing resources effectively. By understanding that growth is not a linear process and requires careful planning and measurement, business owners can avoid common pitfalls and build a business that is both profitable and resilient.
https://omny.fm/shows/the-money-show/small-business-focus-growth-is-not-a-straight-line

In today’s rapidly changing business environment, understanding your business purpose is crucial. Many businesses fail not due to lack of effort, but because they lose sight of why they exist. Here’s why having a clear purpose is essential and how it can drive your business towards sustainable success.

The Importance of Business Purpose

A clear business purpose is vital for making informed decisions and leading effectively. In an increasingly complex world, having a defined purpose helps in navigating the numerous variables that affect business choices. Research suggests that the human brain can effectively manage about five variables at a time, which underscores the need for clarity in decision-making. Knowing your business’s purpose simplifies this process by providing a single, consistent reference point.

Consequences of Losing Focus

Many business owners lose focus and fail to maintain the passion that initially drove them. This often leads to stagnation and declining motivation. A business solely driven by profit will eventually hit a plateau, leading to questions about its future direction. Without a compelling purpose, it’s easy to become cynical, negative, and lose control over the business’s trajectory.

The Cycle of Needs and Wants

In the early stages of a business, the drive to meet basic needs, such as generating cash flow, is a powerful motivator. As the business grows and these needs are met, attention shifts to fulfilling personal wants. However, once both needs and wants are satisfied, a lack of purpose can lead to a decline in business value and a loss of inspiration among team members.

Defining and Reinventing Your Purpose

To avoid this decline, it’s essential to define and continuously revisit your business purpose. Some frameworks, like the B Corporation model, suggest balancing profit with serving the planet and people. However, a simpler approach involves identifying the specific problems your business solves for its customers.

Practical Steps to Define Your Purpose

1. Identify Your Customers: Understand who your customers are and avoid trying to be everything to everyone.
2. Define the Problem You Solve: Clearly articulate the problem your products or services address for your target market.
3. Connect to a Broader Impact: Show how solving this problem benefits society at large.

For example, a company that manufactures thermal blankets for transporting pharmaceuticals can frame its purpose around saving lives and maintaining public health, rather than just producing a product.

Maintaining Passion and Focus

Business owners often start with passion and brilliant ideas but can lose motivation over time. To maintain focus, regularly revisit your purpose and ensure it still excites you. Aligning your business with a meaningful cause can reignite your passion and provide a strong foundation for sustained success.

Understanding your business purpose is not just about staying motivated; it’s about creating a sustainable path for growth. By clearly defining the problems you solve and the value you provide, you can maintain focus and drive, ensuring your business remains relevant and impactful in the long run.

In the realm of business, success doesn’t just happen by chance. It’s a result of careful planning, strategic decision-making, and effective implementation. Just like tuning a radio to the right frequency, aligning your objectives, strategies, tactics, and implementation is crucial for achieving your desired outcomes. Let’s explore how these elements work together to create a roadmap for success.

Objective: Intent, Investment, and Asset Building

At the heart of every successful venture lies a clear objective. It’s not just about making money or creating a product; it’s about understanding your intent, investing wisely, and building an asset that stands the test of time. Whether you’re a budding entrepreneur or a seasoned business owner, defining your objective is the first step towards realising your vision. Are you aiming to secure a return on investment? Are you looking to build an asset that generates long-term value? Understanding your objective sets the foundation for all your future endeavours.

Strategy: Purpose-driven Solutions

With your objective in mind, it’s time to chart your course with a clear strategy. Rather than chasing trends or following the crowd, focus on solving a problem for your customers. Be a builder, not just a seller. Your strategy should reflect your purpose and differentiate you from the competition. Whether it’s through innovation, exceptional service, or niche targeting, your strategy should pave the way for sustainable growth and customer loyalty.

Tactics: Executing with Precision

Now that you have a strategy in place, it’s time to roll up your sleeves and get to work. Tactics are the nuts and bolts of your operation – the specific actions and initiatives that will bring your strategy to life. Position yourself to distinguish your brand, develop a system of delivery to enable seamless operations, build a purposeful team to empower your workforce, focus on growth to dominate your market, and create value to remove dependencies. The operator’s job is to execute these tactics with precision and efficiency.

Implementation: Leadership and Collaboration

Implementing your tactics requires strong leadership and effective collaboration. Identify team leaders who can optimise processes, integrate efforts across departments, delegate responsibilities, and inspire others to achieve their best. As a leader, your role is to provide guidance, support, and direction, ensuring that everyone is aligned with the overarching objective. By fostering a culture of accountability and teamwork, you can turn your strategies into tangible results.

Single-Simple-Scalable: The Key to Success

In the complex world of business, simplicity is often underrated. But as the saying goes, “keep it simple, stupid.” By focusing on a single objective, crafting simple yet effective strategies, and executing with precision, you can build a scalable business that stands the test of time. Whether you’re a start-up or a multinational corporation, the key to success lies in clarity, focus, and relentless execution.

Success in business is not a matter of luck – it’s a matter of strategy and execution. By aligning your objectives, strategies, tactics, and implementation, you can create a clear path to success and achieve your goals.

In the intricate world of business partnerships, success often hinges on the delicate balance of complementary skills, shared values, and aligned goals. However, even the most promising partnerships can hit rough waters, requiring careful navigation to steer back on course. Today, we delve into the journey of two business partners in the realm of PCB manufacturing, exploring the challenges they faced, and the innovative approach taken to resolve their differences. 

Our story begins with a partnership forged in the crucible of entrepreneurship, where one visionary entrepreneur laid the foundation for a PCB company, inviting another to join forces. With a 21-year age gap between them, they embodied a symbiotic relationship—one excelling in sales while the other championed operational delivery. From humble beginnings in a spare bedroom, their enterprise burgeoned into a bustling office and warehouse, a testament to their combined expertise and unwavering dedication. 

The Good and the Bad 

At its core, their partnership thrived on complementary skills, the cornerstone of any successful venture. For over two decades, they navigated the tumultuous waters of business, weathering storms and celebrating triumphs. However, beneath the surface lurked subtle fissures – a lack of formal agreements, a myopic view of the evolving business landscape, and the emergence of divergent values. 

Navigating Change 

As time marched on, changes rippled through their partnership, exposing fault lines that threatened to rupture their shared vision. Shifting agendas and evolving values brought simmering tensions to the forefront, challenging the very fabric of their alliance. The stage was set for conflict, but amidst the discord emerged an opportunity for reconciliation. 

Mediating the Partners 

Enter the mediator, tasked with diffusing tensions and fostering mutual understanding. The mediator introduced two empty seats at the negotiation table – one symbolising the customer’s perspective, the other embodying the essence of the business itself. With every decision scrutinised through the lens of customer satisfaction and long-term business viability, the partners found common ground. 

The Path to Resolution 

Through introspection and guided mediation, the partners embarked on a journey of rediscovery, reconnecting with the ethos that propelled their enterprise into existence. By revisiting their shared history and the challenges overcome together, they transcended personal grievances, embracing a collective purpose larger than themselves. 

In the intricate dance of partnership, conflicts are inevitable, but not insurmountable. By fostering open communication, embracing diverse perspectives, and prioritising the greater good of the business, partners can navigate turbulent waters and emerge stronger than before. As our story illustrates, the path to resolution lies not in discord, but in the shared pursuit of a common  
goal – the enduring success of the partnership and the legacy it leaves behind. 

In a recent episode of The Money Show with Pavlo, the focus was on achieving growth for businesses, particularly in the challenging economic landscape of South Africa. Despite the stagnant growth of the economy, Pavlo shared invaluable insights and strategies for business owners to navigate and thrive. Let’s delve into some of the key takeaways:

Embrace a Growth Mindset

Pavlo emphasised the importance of adopting a growth mindset. In a stagnant economy, it’s crucial for business owners to shift their thinking towards growth opportunities. Being open to new ideas and continuous learning is essential for identifying and seizing growth prospects.

Understand the Economic Climate

While the overall economy might be stagnant, not all industries experience the same growth rates. Pavlo highlighted the significance of understanding industry dynamics and identifying sectors with higher growth potential. By focusing efforts on growth-oriented industries, business owners can capitalise on emerging opportunities.

Invest in Scalability

Scaling a business can be daunting, especially in uncertain economic times. However, Pavlo stressed the importance of building scalable systems and processes. By investing in infrastructure that can support growth, businesses can expand without compromising efficiency or profitability.

Differentiate from Competitors

In a market where many businesses are complacent or resistant to change, those with a growth mindset have a competitive advantage. Pavlo urged business owners to innovate and differentiate themselves from competitors. By offering unique value propositions and constantly evolving, businesses can attract customers and gain market share.

Focus on Profitability

Growth shouldn’t come at the expense of profitability. Pavlo cautioned against pursuing revenue growth without considering profitability. Instead, he encouraged businesses to focus on increasing profitability alongside expansion. Smart growth strategies should aim to enhance both revenue and profitability, ensuring sustainable, long-term success.

Measure Success Holistically

When evaluating growth, it’s essential to look beyond revenue figures. Pavlo advised business owners to consider factors such as increased customer base, market share expansion, and improved profitability. By taking a holistic approach to measuring success, businesses can assess their growth trajectory accurately.

Achieving business growth in a stagnant economy requires a proactive approach, strategic thinking, and a willingness to adapt. By embracing a growth mindset, understanding industry dynamics, investing in scalability, differentiating from competitors, prioritising profitability, and measuring success comprehensively, business owners can navigate challenges and unlock opportunities for sustainable growth.

In the dynamic realm of business growth, the journey to scaling sales is both an art and a science. Understanding the intricacies of this process is key for business owners aiming to unlock their company’s full potential. Let’s explore invaluable insights, shedding light on essential lessons for businesses looking to scale their sales successfully. 

Sales: The Core of Business Success 

At the heart of every thriving business lies a robust sales strategy. Sales are the lifeblood of any enterprise, regardless of whether it offers products or services. Without a well-defined sales engine, growth and success become challenging. 

The Science of Selling: A Delicate Balance 

Drawing parallels between the artisanal craft of baking and the science of selling, we find a delicate balance required for success. Much like precision in baking, sales demand a systematic approach. This intersection of science and art becomes the foundation for sustainable business growth. 

The Funding and Sales Conundrum: Finding the Right Mix 

A common misconception among business owners is the belief that a great product alone can propel a business to success. But a stellar product is only one half of the equation. The other half involves establishing a robust formula for commercial success, with a well-oiled sales engine driving the process. 

Navigating the Digital Evolution: Ground Presence Matters 

In an ever-evolving digital landscape, the shift from relying solely on digital platforms to find clients and customers, to the importance of establishing a physical presence is critical. Finding motivated salespeople is a global challenge, underscoring the necessity of a dedicated team on the ground to connect with customers on a personal level. 

The Secret of Selling: Understanding Your Customer 

The core of selling is understanding your customer. Instead of immediately presenting your product’s features, start by comprehending your customer’s problems and needs. Building this initial connection sets the stage for a successful sales process. 

Building a Scalable Sales Engine: The Key to Long-Term Success 

Building a scalable sales engine involves creating systems that consistently deliver on promises to customers. By prioritising the development of a reliable sales team and system, business owners can focus on growth rather than mere maintenance. 

As businesses navigate the challenges of scaling, embracing these lessons becomes a pivotal step towards sustained growth and success. Learn more in this podcast discussion on the sales engine, from The Money Show:

In the dynamic landscape of business, the ability to navigate challenges and uncertainties is paramount for success. As we step into 2024, a year filled with global elections, geopolitical tensions, and economic complexities, the need for strategic planning and purpose-driven leadership is more critical than ever. Drawing inspiration from an unexpected source, Pavlo Phitidis shares his thoughts on how the world of business can glean valuable lessons from the extraordinary journey of Diana Nyad, a world record holding long distance swimmer.

Setting the Destination:

In a recent discussion on “The Money Show,” Pavlo & Bruce Whitfield, shared insights into the challenges and opportunities awaiting in 2024. Recognizing the turbulent waters ahead, Pavlo turned to a surprising source for inspiration – a movie called “Nyad.” The film follows Diana Nyad’s quest to swim from Cuba to Florida, a 100-mile journey through shark-infested waters and unpredictable conditions.

Nyad’s journey became a metaphor for setting a destination in the business world. As Pavlo noted, “Without a destination, you’re going to be swimming in circles.” In the context of business, having a clear vision and purpose is essential to guide strategic decisions and overcome obstacles.

Lessons from Nyad’s Journey:

Diana Nyad’s determination and resilience offer profound insights for business owners facing challenges. Her journey wasn’t just about conquering a physical feat; it was driven by a deep purpose to achieve something remarkable. A key takeaway from the movie is the importance of defining a destination and building a team around that shared goal.

Pavlo emphasizes, “Destination matters.” Without a clear vision, businesses risk swimming aimlessly, unable to attract the right talent and resources. The parallel drawn between Nyad’s swim and business ownership highlights the significance of planning, teamwork, and unwavering commitment.

Team Collaboration: Nyad’s success wasn’t a solo effort. Behind her remarkable achievement were a coach, a navigator, a nutritionist, and a team dedicated to her vision. In the business world, Pavlo draws parallels to successful entrepreneurs like Jeff Bezos and Steve Jobs. Each of them began with a vision, assembling teams that shared their passion and commitment.

Dealing with Failure: The conversation delves into the fear of failure, acknowledging that failure is often seen as a black mark. However, the lesson from Nyad’s journey and the experiences of renowned inventors like Thomas Edison is that persistence and relentless pursuit of a goal lead to success.

Purpose Beyond Fame: One notable aspect of Nyad’s story is her pursuit of a greater purpose beyond fame or fortune. As Phitidis observes, “Diana Nyad never did what she did to be famous.” This echoes the idea that a business should be driven by a purpose that goes beyond financial success, leaving a lasting impact on the world.

As we navigate the business obsctacles of 2024, the lessons from Diana Nyad’s extraordinary swim resonate deeply. Setting a destination, building a committed team, embracing failure as part of the journey, and finding purpose beyond personal gain are crucial elements for enduring success in the business world. Let Nyad’s journey inspire business leaders, to swim with purpose and resilience, overcoming challenges to reach their desired destinations.

In this article, first published in Elite Business, Pavlo puts a question mark on remote working.

Businesses are about people. And people are about skills, thinking and action. If your people are less than that, you should be looking at technology to do that person’s job. It’s more reliable, dependable and far easier to manage. But it won’t create magic, innovation or culture across your business. People will and do. Remote working puts a question mark on that. 

Here are some reasons why.

Troubleshooting

When a problem arises, the ability to immediately resolve it by pulling people into a room before it cannot be done remotely. And if the problem and its solution need a multidisciplinary approach, which most problems do, then the right people in the room can step out after and all do what needs doing to get the job done. 

As your business grows, it is even more critical because the people in the room might have to coordinate and organise their teams to get the job done. It’s instant, and when it comes to retaining clients and building a brand (problem resolution builds a brand better than any marketing campaign), you need to get it done there and then.

Culture and value

Culture is nebulous, yet without one, your business creates a staccato experience for suppliers, customers, and employees. Values create the nous that enables your business and its employees to operate against an intuitive framework when needed. This intuition or unconscious response develops over time. It doesn’t build from the values stated in your website or reception wall but through living, breathing and observing the behaviour of all business employees, especially its leaders. 

If values create the framework and culture of the behaviour about what a company stands for, the best way to learn it is in person. Imagine a scenario where an employee enters the office of a manager. The door closes. A few minutes later, the employee leaves the office, pale and slightly stressed. Your colleague sitting next to you asks what went down. You explain what that employee did, and through that, you learn the authentic culture and values of that company. A word indicating a value, be it integrity, honesty, etc. means very little until it is understood and witnessed in practice.

Learning and training

While aspects of employee training are best offered online and therefore accessible remotely, the context, the application and the improvement of an employee’s performance arguably cannot be. We learn by doing not online engagements and content. Observation and “show and tell” are far more impactful ways of developing capability in your employees. Imagine trying to learn kung fu remotely rather than in the ring. Only when a punch lands do you genuinely understand how to take the theory and put it into a useful practice suited to your inherent abilities. The same goes for riding a bicycle, managing a project, managing a team, collecting a debtor book or selling.

Growth

Beyond a job, why do people opt to work in your business? I’ll put it into context in a recent meeting with a global law firm specialising in tax. Their brand exciting and innovative brand operates across a  federation of autonomous companies operating in 169 countries. In the past, they won recruits with their innovative approach to tax, assured learning and very quick exposure to exciting clients. Their vibrancy won them talent before bigger firms’ cold, hard salary packages. But, they have found that remote working has directly prevented the handover of relationships from senior partners to junior partners and associates. It has harmed the transfer of knowledge on the subject matter, the personalities making up a client, the industry, and it has stunted the ability of senior partners to pick junior partners effectively and for junior partners in return to compete to work with promising associates. 

Remote working is a privilege, not a right. If you are attracting employees who demand it, consider moving on. They are there for their comfort rather than the well-being of the business as active, engaged, committed contributors who go beyond fulfilling a functional role.

When is there a case for remote work? It should be part of your business-building toolkit. How to use it, when and where and then how to manage it is a future article. 

In the ever-changing landscape of business, where startups can skyrocket or vanish overnight, the journey from small business owner to industry veteran is nothing short of remarkable. What should you do when you’ve built a successful business over two, three, or four decades? Should you retire, or should you continue running the show until the end?

The Power of Positioning

Positioning transcends mere marketing—it’s the cornerstone upon which your business is constructed. It shapes your business’s identity, moulds its culture and values, and, when executed effectively, propels revenue and capital growth. To secure a competitive edge, business owners must understand their fundamental positioning and use them as a strategic guide to success.

Defining Your Purpose

Your business’s purpose is more than merely generating profits; it revolves around problem-solving. To unearth your genuine purpose, think about  your skills, aptitudes, and interests Start by identifying the problem you aspire to resolve, its cost to your customers, and the impact it has on their lives. Your purpose should revolve around addressing this problem effectively.

Shaping Your Products or Services

Once you’ve ascertained your purpose, it’s time to craft products or services that harmonise with it. Instead of starting with what you can offer, initiate your journey with the problem you’re resolving. This method ensures that your offerings are relevant and invaluable to your target audience. A profound understanding of the problem’s cost empowers you to set the appropriate pricing strategy and generate added value for your clients.

Crafting a Memorable Customer Experience

Your business’s purpose and offerings should organically lead to an exceptional customer experience. This experience transcends a mere transaction; it revolves around your interactions with customers. When your purpose and offerings resonate with your clients, they will feel understood and valued. This, in turn, paves the way for positive engagement and word-of-mouth marketing, thus creating a potent cycle of growth.

The Art of Saying Yes and No

Discerning when to say yes and when to say no is one of the most intricate aspects of positioning. In the early phases of business, saying yes to every opportunity is a common tactic to maintain positive cash flow. However, as you acquire a deeper understanding of your purpose and problem-solving capabilities, you must learn to decline opportunities that do not align with your positioning strategy. This discernment is pivotal for sustaining your focus and establishing a robust brand.

Positioning your business for success involves grasping your purpose, aligning your products or services with that purpose, and delivering an unforgettable customer experience. By concentrating on these components and mastering the art of saying yes or no, you can differentiate your business from the competition and establish a distinct and compelling position in the marketplace.

To listen to the full discussion from the show:

In this article, originally featured in Elite Business, Pavlo explores the topic of the UK’s GBP6.6 billion skills gap, exacerbated by inflation and tech advances, demanding attention. To succeed, prioritise growth and talent. Build a resilient business model and hire system operators to navigate the skills crisis and pursue higher growth.

Skills are short globally. In the UK, the skills gap cost businesses an estimated GBP6.6 billion. The subsequent challenges of inflation, war in Europe, and the accelerated adoption of AI and other technologies can only have increased this.  

This shortage of skills is not a problem if you don’t want to grow. There are two parts to this comment.

First, growth 

If you’re not growing, you’re dying because your competitors intend to, and in a low-growth environment, their growth will come from eating your lunch. Add inflation, and you are eroding the value you have built thus far. If you opt not to grow, look to exit and realise your value before it whittles away.

If you want to grow, there are two options. First, grow to maintain what you have. This pegs your annual growth rate at inflation, the tepid country growth rate, and your industry growth rate. It approximates 8% per annum. At this level, you are maintaining what you have. To grow beyond what you have, your growth rate should add another 5-10%, depending on your ambition.

Next, talent

In the instance of growth, you need a plan, and that plan needs two things. First, and most importantly, your time and attention to focus on growth. Next, a business model and team that allows your time and attention to focus on growth. Both mean you need to have a good team on board of the right people doing the right thing at the right time.

Across businesses I visit the following constraints regarding human talent become apparent.

1. I need help finding the right people.
2. I have people in senior roles who don’t have the skills or mindset to get the job done without my regular support and guidance.
3. It takes ages for new employees to get up to speed and wash their faces.
4. My “rock-star” employee is constantly toying with other opportunities.

The employment challenge is here to stay. Demographically, each year sees fewer people entering the workforce. Over 2.8m working people are sick, waiting for operations. About 500 000 able, capable 50 years and older, experienced people opted for early retirement. 

If structure determines behaviour, build your business to accommodate the skills challenge.

A business does not just emerge. It is built against an operating model. Your operating model must sympathise with the challenges of growth, size, and shifts in the economy.

However, the bones of the operating model that will resolve many of your human capital challenges remain the same. 

It begins with defining your business in terms of the customer segments you serve rather than the features and criteria of your products and services. 

Understanding these segments, what problem you solve for them, and what experience they want in the process forms the blueprint of your operating model.

Using the blueprint, build the operating processes and systems to deliver that outcome reliably. Systems are sequential activities that bring the experience of the blueprint to life, and that can be taught and measured. Do this across all your commercial functions that comprise that customer experience blueprint. In each function, these activities make up a job description. 

You can now hire people, not because they bring some of their superstar ability to the role, but because they can be evaluated and trained against the activities in their employed function. 

Hiring system operators, rather than mavericks and gurus, has several benefits:

Recruitment is simplified as you can assess through simple questions whether someone has the experience or capability to perform the tasks that make up the system.

Your employees are motivated and have a purpose as they know what to do and when to do it, to achieve a specific outcome. Their performance can be measured and managed.

Your business becomes less reliant on you, as the systems that underpin it are documented, trainable, and don’t depend on a few superstars to get things done.

This unlocks your time to focus on next-level growth despite the skills crisis.