When can you take your foot off the pedal?

16th June 2011

I recently met with some business owners who apparently had the perfect set up, which provided the sort of life-style which many aspire to, but few achieve. Essentially they had a business that worked well without them, it was bringing in a steady income, and generally they only spent a couple of hours a day working. However, despite all this, they recognised that they could have achieved a lot more with this business and were now looking to revitalise it so they could draw more substantial incomes, and/or sell it for a far greater sum when the time is right.
So what was wrong with this apparent success? Well the first thing they offered was that they had managed to grow the business quickly, and had created a profitable enterprise that could work without them within 2 to 3 years of setting up. However, as they had no clear personal goals, and consequently, no “Why” in their business plans, once they were doing well enough, they decided to take the foot off the pedal and enjoy life at the level which seemed OK to them.
In the subsequent years where their input both in management and direction had been minimal, things have remained static at best, and in some aspects, have gradually fallen away. Because they have no set goals, no-one has been set any targets, so everyone does just enough to maintain the equilibrium. There is no clear organisational structure with roles and responsibilities, so no-one is held accountable for anything. The culture has slipped badly, and bad habits which start at the top, have gradually filtered right through the business.
The good news is that they have recognised the need to turn it back around, and start bringing good business practice back into play. So the answer is if you want to keep your business running efficiently and profitably, don’t take your foot off the pedal until you sell it.

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