Do you wear all the hats within your business?
Are you seeing good returns but can’t keep up with the growth of your business?
You may have hit The Ceiling of Complexity.
Find out more with Jason below in this month’s installment of the SMYD Mindset Series.
One of the most common things we can see with small businesses going through stages of growth is when they hit what we call The Ceiling of Complexity. It happens to everybody, especially to small New Zealand businesses, because in many cases as Kiwi business owners, we love nothing more than bootstrapping it. We think that by holding back from expenditure and doing everything ourselves, wearing all 10 hats within our business, we will get the big returns.
At this stage, there’s no money going out the door because we’re not spending any money. So all those returns are coming straight to us, Happy days!
The problem with this is that there are only 24 hours in a day, and there’s only so much that one person can do. No matter how capable we think we are there will come a point where we hit a certain limit of what we can feasibly achieve At this point, as we continue to grow the returns actually decrease – this is not only in terms of profitability for our business, but actually our personal wellness and mental health can take the biggest hit.
So, you’ve hit your first ceiling – as we grow, our business generates more return and it tends to go up in quite a linear line. At this first ceiling, those returns actually start to decrease as you grow.
This is the part that SMYD loves to be involved in. We love it when we can recognize within someone’s business that they have hit that ceiling and you, as the business owner, are at that point of “This business is driving me nuts!”
We can help you identify what strategic outsourcing decisions or strategic investment decisions you can put in place within your business to smash through that first ceiling and continue to grow sustainably.
At some point in the future, you’ll hit another ceiling. This is where, as part of your business plan, we can look at continually investing ahead of the curve so your business can continue to be sustainable and resilient enough to keep growing and keep heading toward those future goals.
The Ceiling of Complexity is applicable to every small business and it’s something that SMYD Accounting / Advisory would love to help you understand and conquer.
To find out more about this or any other tools that you can use to help grow your business, then please do get in touch with us at SMYD Accounting / Advisory.
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