Sydney, NSW (PRWEB) May 05, 2013
Aside from providing valuable insight on the effectiveness of a company's operations, the practice of pinpointing its breaking point can also show business owners where they stand in terms of meeting the demand of their customers. In a recent business update video, James Schramko, owner of SuperFastBusiness, explains how identifying a company's weakest link can be effective in motivating it to increase its capacities and accordingly improve the potential for growth.
"By capacity, I mean your ability to deal with an influx of business," clarifies Schramko, who is also founder of the business growth mastermind SilverCircle. He shares how he often encourages SilverCircle members to perform a specific exercise: imagining that the business they have today has suddenly doubled. "It forces you to think about where your business is weak."
The area where most businesses are highly likely to reach the breaking point first, in this scenario, is support. This involves tasks such as contacting customers and following up on new sales inquiries. It would make sense, then, for a business to increase its capacity — its ability to deliver the goods, provide the service, and basically do the work it promises its clients — before increasing its marketing.
"This is my philosophy," Schramko states. "If you have constraints in your capacity, you are secretly sabotaging your ability to succeed because you don’t go out and get that extra customer or that new business, because secretly, you know that if you were to win them, you couldn’t even deliver. So work on bringing up your delivery capacity, and then your marketing will be a natural consequence."
To illustrate his point, Schramko compares how having full-time support personnel, as opposed to part-time team members, can make a huge difference in a company's ability to provide services. A part-time support person may easily become swamped with work even from a small number of clients; on the other hand, having a full-time employee enables a business to go out and find more customers because it is now confident of its capacity to provide quality service to a greater number of people. "Your whole business grows as a result of that," he says. "So that’s why I think you should work on your capacity first."
As he concludes his update video, Schramko urges other business owners to explore what could happen should their business double — and what they need to accomplish to get on the right path to business growth. "That should point you in the right direction as to what you need to bolster and improve to be ready for that to happen."