This book, How to Grow Your Small Business provides a practical guide for entrepreneurs. The author, using clear examples, outlines a six-step business plan to help your company’s growth. He cleverly likens a business to an airplane, stressing the importance of efficient, interconnected parts for a successful journey.
Donald Miller is an American entrepreneur, public speaker, and author of several books, with “Building a StoryBrand” being one of the most notable.
It demonstrates how entrepreneurs must ensure their company operates effectively, with all areas working together towards common goals. In short, it’s an excellent read for entrepreneurs.
Expanding a small business is daunting in today’s competitive market. Nevertheless, employing effective strategies and techniques can lead to growth and increased profits.
Why Professionalize your Small Business is essential.
Establishing efficient systems and processes is a crucial step for your small business.
The author’s airplane analogy illustrates six vital aspects of business success. It involves creating a plan that guides both the entrepreneur and the team toward the company’s financial objectives.
Lack of professionalism in operations is a common reason for small business failures. Owners often need help with constant problem-solving, neglecting the essential task of how to grow their small business.
The significance of interconnectivity among different company areas should be considered. The author draws a parallel to an airplane, emphasizing that every component must meet precise specifications for safe flight. Otherwise, it becomes a dangerous machine with disastrous consequences.
“The primary goal in engineering an airplane is to get it to a specific destination without crashing.”
In his book, Donald outlines the six vital steps for a strong business foundation, which can lead to successful growth. The book also provides tables and formats, simplifying the process for readers to adapt it to their needs.
While you don’t have to put in place all six steps simultaneously, it’s crucial to understand that each plays a fundamental role in small business growth.
Growing a small business entails making sequential, wise choices and being ready for setbacks. Evaluating problems using the airplane model allows for better decision-making, ensuring your business continues to thrive.
Leadership (Step 1)
The cockpit symbolizes leadership, where pilots set the course for a successful journey. This chapter focuses on creating the “Guiding Principles package” to provide a clear path. As leaders, entrepreneurs must grasp this route and guide their entire team to the destination. This package comprises three key components:
1. A Mission Statement with three economic priorities.
2. Essential traits for team members.
3. Clear definition of daily critical actions for achieving objectives.
Marketing (Step 2)
The right engine signifies marketing efforts, directly impacting the business momentum. Effective operation leads to increased sales, benefiting revenue and ensuring sustainability and growth of the small business.
A clear marketing message is crucial, helping potential customers understand how your product or service addresses their needs.
“Clarify your message and customers will listen.”
Hence, the aim is to communicate your offer’s benefits clearly, motivating people to make purchases.
“The point is this: Your brand is built with words.
So, what kind of words do we need to use to attract people to our products and encourage them to place orders? “
Donald provides valuable tips for entrepreneurs to create an effective BrandScript for their marketing message.
Sales (Step 3)
The left engine symbolizes sales, propelling the advancement of the company. Effective collaboration between marketing and sales is vital for efficient progress.
In this sales context, we’ll discover how to create a customer-centric speech that lights up their interest in the storybrand crafted in the marketing area.
“Instead of selling somebody something, let’s invite them into an honest story in which they are able to solve a problem by using the products we sell.”
Product or Services you sell (Step 4)
The airplane’s wings represent your business’s products or services. So, these offerings must be both profitable and in high demand, as they bear the weight of your company. Coordination between marketing and sales is vital to your company’s progress.
Our marketing and sales engines can only work if we have something to sell. The choice of products or services we develop, and the market is as critical to our business as wings are to an airplane. Without demand and profitability, they impact marketing and sales negatively.
Hence, optimizing product and service supply based on demand and profitability is vital for the company’s sustainability and growth. This way, the airplane’s wings facilitate smoother takeoff.
Overhead and Operations (Step 5)
The aircraft’s body stands for business overhead and operations. Uncontrolled overhead costs could cause the plane’s belly to grow excessively, risking a crash. Payroll is usually the most considerable expense for a company, so it’s essential to hire with clarity about the role’s value for growth and sustainability. Otherwise, a high payroll could lead to bankruptcy.
The products or services we offer, along with the sales and marketing efforts, must balance the necessary daily overhead costs.
“In other words, if you want your small business to make money, make the marketing and sales engines powerful, make the product profitable, and keep overhead down!”
Cash Flow (Step 6)
The fuel tanks represent the money flow, acting as the power for all plane parts. Without fuel, even a well-designed plane will crash.
The same applies to managing finances in a small business. Inadequate management and insufficient funds lead to trouble, necessitating an emergency landing.
In this section, Donald suggests managing small business finances through five bank accounts, which a fluid system feeds for effective money control. His explanation in the book is interesting, as depicted in the diagram.
In conclusion, How to Grow your Small Business book is a must-read for entrepreneurs, offering valuable tips and tools to enhance business efficiency and sustainability over time.
For further information about Donald Miller, his courses, and other books, please visit his website at donaldmiller.com.
