From Solopreneur To Big Business: How To Make The Leap

Solopreneurs (entrepreneurs that are in business for themselves, with no employees) have a pretty big hill to climb. While, in my experience, they are usually an optimistic bunch, few are able to envision a big end game. In fact, just getting through the first year can be a real challenge. For these folks, growing into a seven- or eight-figure business seems unlikely, maybe even impossible.

Of course, that kind of success does happen. It’s not hard to find examples of solopreneurs who made it big. Amazon founder Jeff Bezos left a Wall Street job to start an online bookstore in his garage. Pierre Omidyar started by writing code for an online auction site that grew into eBay. Before she became a mega-brand, Martha Stewart was running a catering business out of her basement.

There are seven stages between startup and sale. Let’s take a look at each:

1. The Road Map Stage

The solopreneur starts out by creating a strategic plan that details how to get from point A to point B. This is a road map that should include their goals, vision and the projected scope of their business. The strategic plan must extend well beyond the trials and tribulations of a startup period. The plan will probably be adapted a bit each year, but the act of documenting where the business is going and how it’s going to get there dramatically increases the chances of achieving goals.

2. The Speciality Stage

Once that plan is in place, it’s time to focus on establishing a reputation for excellence. In this business growth stage, the entrepreneur must build a reputation as an expert by acquiring credentials, testimonials, case studies and awards. By creating a clear superiority in one area, the founder makes it easier to compete on quality and reputation instead of price.

3. The Synergy Stage

The business owner builds a team. While they may have started as a solopreneur, in stage three, the founder acknowledges their strengths and weaknesses and works to employ a team that complements their aptitudes and offers a well-rounded set of skills. Key responsibilities are assigned to experienced experts. At this stage, it’s essential to have a skilled strategist, a trusted accountant, a human resources whiz, an exceptional operations manager and an excellent sales and marketing team.

4. The Systems Stage

Once the core team is in place, the business owner can dive into stage four. This is the time to develop standard operating procedures, create efficiencies, ensure consistencies and put quality checks in place. When systems are in place, employees know what to do and supervisors know how to measure success. Creating reliable performance standards sets the stage for expansion.

5. The Sustainability Stage

Once a business has conquered these basics, it is ready for stage five, the stage in which a company expands. With the right people running departments and robust systems in place, the organization can replicate success. It’s now easier to open new locations or expand production without sacrificing quality. In this stage, franchises are born. New factories are opened. New territories are developed. Distribution explodes.

6. The Salability Stage

When a business is large and profitable, many business owners start work on what I call “The Salability Stage.” The owner gets the company ready to sell, go public or do a handoff. Systems are tightened up. Brand image is finessed, financials are formatted for review and any liabilities are addressed.

7. The Succession Stage

Finally, the last stage is where the owner steps back or steps out and permits others to run the business. Here is where it pays off to have begun with the end in mind. Whether your plan was to stay solo or create an empire, the best time to set the business goals is at the beginning. Even as you work alone in your basement (or garage or home office), it’s essential to think about which kind of business you hope to create. Some founders simply want an enjoyable career. Certain owners strive to create a family business. Others build companies as investments to sell later. Each type of business requires different strategies, but if you know what you’re working toward, it will make this last stage easier.

Whether you’re a true solopreneur launching a small enterprise or starting a business with a larger vision, it’s wise to take time to develop goals, support them with a strategic plan and begin deliberately moving in one direction.

Source: www.forbes.com