Building your capacity to scale
When we talk about “scaling” most people immediately think of scaling in terms of revenue.
More customers. More sales. More money.
But increasing sales is only one part of scaling.
The other side of scaling is growing capacity.
Capacity building happens incrementally
This is an org chart I use for reference with my clients:
(Click the image to download a PDF copy.)
The goal of increasing capacity is to focus more and more of YOUR time and effort on the roles at the top: the CEO and manager.
This is where you are most valuable to your business.
See the red arrow?
That’s where I advise my clients to start building capacity.
Next you can delegate delivery tasks from the middle column.
Then marketing and lead generation from the left hand column.
Sales conversion is one of the last things that most entrepreneurs delegate.
When you follow this general order, you can build capacity incrementally as you need it.
Use the skill/fun box to identify what to delegate next
A number of years ago, I worked with an owner who was growing her business rapidly.
Over the course of about 18 months, we updated her job description several times as she worked her way from doing almost everything to focusing just on the management and sales aspects of her business.
Before each change, we began with the skill/fun box exercise.
This requires auditing your time for a full week – writing down everything you do in 15-minute increments.
Then categorize each task according to the level of skill it takes compared to the level of interest, enjoyment, or fun it produces (for business tasks think of fun in terms of revenue generated.)
Tasks that are low in skill and low in fun are the first ones to delegate!
There’s never an equal balance between sales and capacity
In an ideal world, sales and your capacity to deliver would be equally balanced.
You’d have enough work to keep everyone busy, but not so much that your people and systems are overloaded.
In reality, it’s more of a balancing act.
Sometimes you have more sales than capacity. At other times, you have unused capacity.
Many owners are hesitant to go after more sales when they don’t feel they have the capacity to deliver.
I find this perspective to be crazy-making!
Your business will be healthier and more profitable if you aim for having slightly more sales than you have capacity.
The alternative is a business that is paying overhead for unused capacity.
Would you like some help scaling your business and finding the right balance between revenue growth and capacity?
Book a quick 15-minute call to talk about coaching here: time with John
The Ultimate Guide to Scaling Your Business
How to grow your business without sacrificing time freedom
This post is part of my Ultimate Guide to Scaling Your Business. Visit the guide homepage to get my best advice and coaching exercises to help you:
- Develop systems and processes to free up your time
- Hire and manage a great team to run your business (mostly) without you
- Make the mindset changes that enable you to grow your business bigger - faster than you dreamed possible