You're the leader of a multi-million dollar business. You have begun putting your management team in place. But, you work 50-60 hours a week. In fact, you are still involved in most day-to-day operations. You know you need to slow down, think strategically, and improve the business's ability to grow sustainably.
If these statements describe you, congratulations! You've grown your company into a second-stager. It is no longer a startup.
As you'll have seen, a startup must do three things to prove itself: validate its business model; sell reference clients; and, of course, get its hands on cash. This is an all-or-nothing proposition, and the founders of a successful startup will be intensely-focused on succeeding on all three counts.
Then one day, the founders will pull their heads out of the oven, look around, and think, "Damn, we did it!" Keep a watch out for this moment. It will happen if you are one of the fortunate (yes, fortunate) few who make it this far.
The pull-your-head-out-of-the-oven-look-around-and-think-damn-we-did-it moment is an inflection point. It is a point on the growth curve of every business where the founders need to decide what is next and what needs to improve in order to get there. Chances are good that nobody on the team has thought quite that far ahead. Why bother thinking about market share, management teams, advisory boards, business efficiency, vision, BHAG, or mission, before a fledgling business has proven itself in the marketplace?
If you don't recognize the inflection point when it occurs, your company's growth will flatten out. The three concerns of the startup described above are not the only, nor likely primary, concerns of the second-stager. Not recognizing this will mean the founders will be focusing on the wrong priorities. Growth will stagnate, or worse, will become uncontrolled and possibly threaten the company's existence (the proverbial implosion).
To sustainably grow a second-stager, its leaders must embrace the following mandates:
- Create a management team
- Create organizational clarity
- Over-communicate organizational clarity
- Create systems to reinforce organizational clarity
Looking forward, in which of the above areas must you focus to move your second-stager forward?
