Fix Your Foundation Before You Scale

When your business finally starts gaining momentum, it can feel like the moment you've been waiting for—calls are rolling in, orders are stacking up, and the urge to grow fast feels irresistible. But in this episode, Ralph shares a candid warning: that momentum might be masking foundational cracks that could bring everything crashing down. Before you scale, you need to ask—have you taken the time to fix your foundation? Because ignoring the basics now could derail your dream later. If you want lasting success, you have to fix your foundation before you scale.
Check out the full podcast episode here
Ralph unpacks five hard-hitting signs your business may be growing on shaky ground—like cash flow chaos, disorganized operations, and burnout that's creeping in at the edges. You’ll also get four practical steps to rebuild wisely, so that when you’re ready to grow, it’s not just big—it’s sustainable. Whether you're expanding your team, adding services, or just feeling the pressure to keep up, this episode will help you pause, refocus, and fix your foundation before you scale.
Chapters:
- 00:05 - The Shifting Momentum
- 02:42 - Fixing the Foundation Before Scaling
- 10:06 - The Importance of Proper Scaling in Business
- 12:19 - Understanding Operational Chaos
- 18:50 - Scaling Your Business: The Need for a Strong Foundation
- 24:37 - Building Your Business Instruction Manual
- 32:22 - Building a Strong Foundation for Business Growth
Takeaways:
- The importance of addressing vulnerabilities within your business foundation before pursuing growth cannot be overstated.
- Scaling a business without a solid foundation may lead to severe financial instability and operational chaos.
- Effective documentation of core processes is crucial for achieving consistency and efficiency in service delivery.
- Establishing a financial buffer is essential to navigate unexpected costs and ensure sustainable growth.
- Inconsistent customer experiences can damage your reputation and hinder long-term success as a business.
- Recognizing and addressing capacity limitations will facilitate a more manageable and successful scaling process.
Links referenced in this episode:
To access the action sheet for today's episode click here http://gritandgrowthbusiness.com/action
To book a call with Ralph to discuss how he can help you grow your business click here
To listen to listen to Ralph's other shows click here https://www.askralph.com/
Get a free copy of Ralph's book Mastering Your Finances
Buy Ralph's Latest Book - The Gospel of Entrepreneurship
You fought, haven't you?
Speaker:You poured your entire being into this business and lately something is shifting.
Speaker:The phone's ringing more.
Speaker:Orders are coming in faster and new opportunities are
Speaker:knocking that rush of momentum.
Speaker:It's intoxicating, isn't it?
Speaker:It screams this is it.
Speaker:It's happening.
Speaker:Grow, expand, and do it now.
Speaker:And you desperately wanna believe that, but what if, just, What if that
Speaker:surge of excitement, that raw desire to scale quickly, is actually the
Speaker:single riskiest, most dangerous move that you could possibly make right now?
Speaker:What if the very dream you're trying to build upon is standing on ground?
Speaker:That's silently starting to give way.
Speaker:Today we're gonna have an incredibly honest conversation about a painful truth.
Speaker:I'm gonna answer this question, why you must face your vulnerabilities,
Speaker:why you must fix your foundation before you even dare to imagine
Speaker:reaching for that next level.
Speaker:This isn't about stopping your dream, I want to tell you right now.
Speaker:It's not about that.
Speaker:It's about making sure your dream doesn't crush you.
Speaker:In the end, it's really about protecting your vision, protecting your
Speaker:sanity, and protecting your future.
Speaker:So stay with me because we're gonna get into the grit on today's show.
Speaker:Welcome back to Grit Growth Business.
Speaker:I'm Ralph Estep Jr.
Speaker:Now remember last week we stood together and we unlocked that
Speaker:power of knowing your numbers.
Speaker:We talked about that incredible feeling when financial anxiety starts
Speaker:to give way to true control, and I'm, I'm hoping you're feeling that.
Speaker:Now, this week we're taking that hard won insight, that newfound clarity, and we're
Speaker:gonna apply it to what I call a monumental decision that many small business owners
Speaker:grapple with, and often and too often, unfortunately, with painful results.
Speaker:And that's this.
Speaker:Fix your foundation before you scale.
Speaker:Now listen, I, I know that burning desire inside you right now, I've felt it.
Speaker:You've been grinding for months.
Speaker:Maybe for you it's even been years.
Speaker:You've weathered the storms that would've made most people quit.
Speaker:They would've just walked away.
Speaker:You paid your dues, you dug deep in the trenches and friend, you've
Speaker:got the battle scars to prove it.
Speaker:And then finally, blessedly, I would say things are starting
Speaker:to click in your business.
Speaker:You're getting more leads.
Speaker:You're, you've got a growing team.
Speaker:Your revenue is climbing.
Speaker:and it's thrilling.
Speaker:It's a immense, thrilling energy, this primal urge to pour more, more fuel on
Speaker:that fire to just go like gangbusters.
Speaker:Because you hear this all the time.
Speaker:I hear it all the time.
Speaker:Everyone talks about scaling as this ultimate badge of honor.
Speaker:The sign you've made it, right?
Speaker:But here's the painful reality.
Speaker:I've witnessed countless times over my three decades in business.
Speaker:Yeah, three decades makes me feel old too.
Speaker:I've even felt this myself in those moments of over ambition, scaling too
Speaker:fast, too furiously on a, on a weak and cracking or unfinished foundation.
Speaker:Let me just tell you, that's one of the quickest, most agonizing
Speaker:ways to bring a promising business.
Speaker:And the soul behind it, you to its knees.
Speaker:Think about this for a minute.
Speaker:I think this is a great way to imagine this.
Speaker:Imagine building the house of your dreams and you put together the plans, you've
Speaker:selected the property, you, you love this place, so you're putting it together.
Speaker:Every brick, every beam of that thing represents your late nights.
Speaker:Those nights you thought would never end those missed family dinners.
Speaker:Yeah, hun, I'll be home shortly.
Speaker:All of your personal savings, everything you have, everything you
Speaker:have, you've poured into your business.
Speaker:You wouldn't think of adding a grand second story or expanding the new wing if
Speaker:the very foundation, what you were putting in the ground was poured and was still
Speaker:settling or, or if the plumbing in the original structure was already leaking,
Speaker:you got pipes bursting all around.
Speaker:Or if they, that electrical wiring was tangled and exposed.
Speaker:Would you think about that for a second?
Speaker:You'd be inviting disaster.
Speaker:He wouldn't do that if you were building a home.
Speaker:But here's the problem.
Speaker:In business, we feel this immense pressure to grow or die and we often
Speaker:push for expansion without truly shoring up the core of our businesses First.
Speaker:I got a story for you.
Speaker:I can still remember meeting with a client about 10 years back and this guy was a
Speaker:neighbor of ours when, when my kids are really young, it's probably been closer
Speaker:to 20 years now that I think about it.
Speaker:And he's one of these guys.
Speaker:He had always been an employee, but he, he decided this moment he
Speaker:was gonna venture out on his own.
Speaker:He was taking the leap, as they say, he was putting it all out there.
Speaker:He saw this opportunity, he saw the potential, and I remember he,
Speaker:he came up down the street one day and he says, Ralph, he says,
Speaker:you do accounting work, right?
Speaker:I said, I absolutely do.
Speaker:I said, you can schedule an appointment with me.
Speaker:So he scheduled an appointment with me and, and he came in, him and his
Speaker:wife to discuss his business plan.
Speaker:And he was so excited about being on his own, owning his own business,
Speaker:setting in his own schedule.
Speaker:Yes.
Speaker:He was thrilled and I was happy for him.
Speaker:I looked over his plan and I thought, wait a minute.
Speaker:Here we, we got a problem here.
Speaker:As I'm looking at this plan, I found this huge, what I call gaping
Speaker:hole, and I saw it right away.
Speaker:It was obvious to me he was way undercapitalized.
Speaker:He was doing things on what I'll call a shoestring budget.
Speaker:He had, he had very little of his own money to even get started.
Speaker:Like I said, he was one of these guys that was working from week
Speaker:to week, paycheck to paycheck.
Speaker:He had been promised these huge jobs doing new construction homes, and he was the
Speaker:guy who installed all of the closet racks.
Speaker:You know, the person that came at the end.
Speaker:They put the closet racks up, the towel holders, the little odds and ends those
Speaker:finishing touches that you add to a home.
Speaker:I started thinking about this and I quickly realized he was gonna be at
Speaker:the end of each of those projects.
Speaker:And unfortunately, being at the end of the project, meant, he was gonna
Speaker:be one of the last people paid.
Speaker:'cause basically he wasn't gonna get paid until the house sold.
Speaker:So him and his wife that came in, they sat down.
Speaker:I, I talked to him, I looked at their business plan and I
Speaker:brought this to his attention.
Speaker:And I said, Hey, are you concerned about getting paid?
Speaker:He says, no, no, no, Ralph, you don't understand these, these builders love me.
Speaker:They absolutely love me.
Speaker:I do a great job for them.
Speaker:They count on me, they're sending me all their new projects, and
Speaker:I said to 'em, that's great.
Speaker:That's fantastic.
Speaker:You've got a whole level of volume of business coming your way.
Speaker:But I asked them this question, I said, how long will it take for them to pay you?
Speaker:And he kinda looked at me like I was crazy.
Speaker:It was taken back by the question.
Speaker:And like I said, he was used to having that Friday paycheck.
Speaker:All of a sudden he was on the other side of the desk, as they say, he had
Speaker:to buy the materials, he had to pay the employees, he had to handle all
Speaker:the overhead, the, the truck payments, the insurance, you, you get the idea.
Speaker:All those things that someone else always handled.
Speaker:And he had very little cash to start.
Speaker:Now he told me he had more cash than he did, but I, I'll, I'll
Speaker:talk about that in a second.
Speaker:And he was gonna be putting that small amount of cash, all of it on the line,
Speaker:hoping and, and listen to me hoping.
Speaker:Hoping he would get paid quickly to keep up with his expenses.
Speaker:Now, look, I've got a little inside baseball information.
Speaker:I, I know how home builders and contractors routinely pay.
Speaker:They, they pay slow.
Speaker:I mean, slow is molasses.
Speaker:I'm talking 60 days if you're lucky.
Speaker:More like 90, 120 or yes, even 180 days to get paid.
Speaker:So think about it for a second.
Speaker:He was going to need at least two or three months worth of
Speaker:operational cash just to get started.
Speaker:So I, I, I said this to him.
Speaker:I said, I shared this with him, and he, he said, come, no, no, no problem, Ralph.
Speaker:We've got this.
Speaker:Now looking back at it, it was one of my, in my earlier days of my
Speaker:career, I should have known better.
Speaker:I looked across and I saw his wife roll her eyes, and, and I
Speaker:knew right then something was up.
Speaker:Deep down I had this, this feeling that this guy would be outta
Speaker:business in less than three months.
Speaker:And I didn't like that feeling because I'm all about helping people find
Speaker:their business, build their dreams.
Speaker:So being honest, I said to him, I said, listen, I think you need more
Speaker:money to get started and let me just tell you right now, it was like I
Speaker:hit him over the head with a hammer.
Speaker:He jumped up, got got mad, stormed outta the office, left
Speaker:his wife and I just sitting there wondering what just happened.
Speaker:Now, he ended up returning a few minutes later and apologized, but I
Speaker:knew deep down I was crushing his dream.
Speaker:That's what I was doing.
Speaker:I was crushing his dream, but I saw where he was going to end up
Speaker:because he had already told me he's gonna be buying three new vans.
Speaker:Okay?
Speaker:So he's gonna have payments on three new vans.
Speaker:He was gonna have three, two man crews to put in those vans.
Speaker:So he had to payroll costs for that, and the payroll taxes and all the overhead.
Speaker:He had insurance to worry about and materials and all kinds of other supplies.
Speaker:So I told him again, I said, I think you need to wait, and
Speaker:I mean this from my heart.
Speaker:You don't have the money to scale like this.
Speaker:Now.
Speaker:You probably know the end of the story.
Speaker:Of course, he didn't listen to me.
Speaker:He just went ahead and did what he thought was best, and I remember his
Speaker:wife called me about, I wanna say it was about 90 days later to tell me that
Speaker:they need to come in and see me again.
Speaker:She, she needed to discuss and ready for this.
Speaker:She discussed how they were gonna close the business.
Speaker:And I thought to myself, well, I figured that was gonna happen.
Speaker:But worst of all, and this was the saddest part of it all, she needed the
Speaker:name of a good bankruptcy attorney.
Speaker:See, it turns out that just one month into the business, as I
Speaker:predicted, the cash was gone.
Speaker:It was non-existent.
Speaker:So after 30 days, they took out a home equity loan to fill the gaps.
Speaker:So now three months into it, they were broke.
Speaker:They had three vans out for repossession from the bank on the verge of losing not
Speaker:only their life savings that they had put into this business, but they were facing
Speaker:the real possibility of being homeless.
Speaker:And see, that's why it's so important for us to talk about Scaling properly.
Speaker:That's why I wanna talk about on today's show, and ensuring that everything is, is
Speaker:in place before making these big moves.
Speaker:'cause if you're listening right now, I wanna help you
Speaker:avoid this kind of situation.
Speaker:And see this pain is not just financial and, and though it will hit you, it'll
Speaker:hit your wallet leg with a vengeance.
Speaker:That's the truth.
Speaker:It hit him.
Speaker:But it's that creeping operational chaos that steals
Speaker:your sleep one night at a time.
Speaker:It's that heartbreaking customer service failures that chip away at your
Speaker:reputation that you so carefully built.
Speaker:It's burning out your good people until they just quit.
Speaker:They've had enough, taking invaluable knowledge with them.
Speaker:And it's quality dropping to unacceptable levels.
Speaker:But most agonizingly, it's that gut wrenching feeling of losing control over
Speaker:the very thing you poured your life into.
Speaker:Your beautiful dream, turning into a relentless nightmare.
Speaker:See, you were excited, you thought you were expanding your success, but, but
Speaker:in the end, all you did was expand your problems into a bigger, more complex, and
Speaker:listen to me on this soul crushing mess.
Speaker:So let's talk about that problem of not knowing what's really happening
Speaker:under the hood of your business.
Speaker:I just wanna take a few minutes and talk about some of the
Speaker:common symptoms that scream.
Speaker:Stop, beloved Builder, fix this now before you try to grow.
Speaker:And I just wanna talk about how these symptoms manifest as real,
Speaker:very tangible pain points in your day-to-day business and in your life.
Speaker:And see, this is what I've seen way too many times.
Speaker:So let's work through these together.
Speaker:Let's start with this one.
Speaker:I'll call it just in time operations, which actually means barely in time.
Speaker:Think about your daily grind.
Speaker:Ask yourself this very difficult question.
Speaker:Are you constantly reacting to emergencies instead of working proactively?
Speaker:Think about it like this.
Speaker:Let's say you're a plumber, so is your plumber running out of a, of a common
Speaker:part halfway through a job causing delays and causing that client to be frustrated?
Speaker:Maybe you're in landscaping.
Speaker:Is your landscaper constantly scrambling for tools because nothing's organized,
Speaker:wasting precious billable hours.
Speaker:Okay, pet peeve here.
Speaker:Gonna go on a Ralph rant.
Speaker:Get used to that.
Speaker:'cause on this show, we're gonna have some Ralph rants From time to time,
Speaker:I don't know how many times I've had contractors come to my home to fix stuff.
Speaker:Yes, I try to support my clients and use them when I have a need.
Speaker:And they show up for the job and their truck is a complete disaster.
Speaker:I'm talking so bad that when they open the door, stuff's falling out of the truck.
Speaker:So if you hear nothing else I say today, organize your
Speaker:business, especially your tools.
Speaker:And you might be saying, Ralph, why is it?
Speaker:Because, listen, this is a direct reflection, not only of your
Speaker:professionalism, but that lack of basic organization is going
Speaker:to cost you and hear me on this.
Speaker:It's going to cost you thousands of dollars in lost billable time
Speaker:and material's gonna go missing.
Speaker:I, I, I guess I better get back to what I was saying, uh,
Speaker:done with the Ralph Power Rant.
Speaker:Let's continue with what we're talking about.
Speaker:So let's say you're a service provider, is your service provider juggling
Speaker:three urgent client requests at once?
Speaker:Letting balls drop and promises break?
Speaker:See, This isn't just inefficiency.
Speaker:It's this constant adrenaline spike, chronic stress, and a
Speaker:feeling of being perpetually behind.
Speaker:If you're listening right now, have you ever been there?
Speaker:I, I know I've been there, and if you're scaling, it's only
Speaker:gonna amplify this chaos until it becomes utterly unmanageable.
Speaker:Then you're gonna be doing jobs over and over again.
Speaker:You have massive redos.
Speaker:You're gonna lose clients, you're gonna get exhausted.
Speaker:And your ineffective staff is ultimately gonna say, I've had enough of this.
Speaker:I'm outta here.
Speaker:That's the first thing.
Speaker:Let's look at the next thing.
Speaker:And that's weak or non-existent systems and processes.
Speaker:And I don't know how many clients I've dealt with at this situation.
Speaker:Ask yourself this.
Speaker:How do things really get done in your business?
Speaker:How do they get done?
Speaker:Do you have clear documented steps for everything from how a lead becomes
Speaker:a client or maybe how a project is delivered from start to finish?
Speaker:Or how about this one, you wanna get paid how an invoice is sent and followed up on?
Speaker:Or is everything reliant on your memory, your intuition, or some
Speaker:what I'll call tribal knowledge locked inside your team's heads.
Speaker:That is a recipe for disaster, and the pain here is deep, it's
Speaker:maddening, inconsistency, repeated errors, frustrating, miscommunication,
Speaker:and hear me on this one.
Speaker:Soul sucking experience of constantly reinventing the wheel.
Speaker:Then let's add scaling to that.
Speaker:So when you try to scale this, weakness means every new customer or every new
Speaker:employee adds exponentially more chaos, not just more volume, more chaos.
Speaker:Training new staff becomes impossible because there's no clear roadmap for
Speaker:them to follow, leading to high turnover, wasted resources, and a feeling that
Speaker:you're just constantly bailing water.
Speaker:Let's look at another major concern.
Speaker:Inconsistent quality or customer experience, this will
Speaker:definitely sink a business.
Speaker:Ask yourself this, and this is not an easy thing to ask.
Speaker:Is your business delivering a consistent, high quality experience
Speaker:every single time, regardless of who they interact with or how busy you are?
Speaker:I told you that one was gonna be tough.
Speaker:Or like most businesses do, things noticeably slip.
Speaker:When you get swamped when you're busy, oh, alright Ralph, we're, we're so busy.
Speaker:I can't get to you until tomorrow.
Speaker:And then when the guy shows up or the lady shows up to do the work,
Speaker:they don't have the tools there, they don't have the materials.
Speaker:And that little slipping, that slipping becomes a landslide over time.
Speaker:And certainly when volume increases, like I said, you're gonna pour
Speaker:more gasoline on the fire and that landslide is going to go even bigger.
Speaker:The pain here.
Speaker:The pain here is significant and it's long lasting.
Speaker:It's that constant customer churn.
Speaker:It's negative reviews that spread like wildfire online.
Speaker:Listen, I'm gonna get to this in a second.
Speaker:And a damaged reputation that takes years, even decades to
Speaker:rebuild if you can even rebuild it.
Speaker:Here's something I thought about.
Speaker:Think about that restaurant where you had a bad meal.
Speaker:That one you, oh, you know, such and such told me the
Speaker:meals are here are pretty good.
Speaker:You went and checked it out.
Speaker:And it was awful.
Speaker:It was terrible.
Speaker:Maybe the service was completely un unbearable.
Speaker:Well, if you have that experience, you tell everyone
Speaker:you know about how bad it was.
Speaker:You tell every single person, oh, don't go there.
Speaker:That place is terrible.
Speaker:You might not share that great meal, but you will surely tell of the bad ones.
Speaker:And the same thing goes for your business.
Speaker:Your customers are gonna tell everyone they know about how you drop the ball.
Speaker:How you messed up the job.
Speaker:You weren't on time, it wasn't done right.
Speaker:Your truck was a disaster.
Speaker:Your billing is a mess.
Speaker:And if you think about it for a second, that's the opposite
Speaker:of what we're trying to grow.
Speaker:That's the opposite of referrals that my friend is business destruction.
Speaker:I. And see if you're trying to scale on a broken customer experience,
Speaker:it simply means breaking it for more people and breaking it faster.
Speaker:Your growth will be built on a leaky bucket, constantly losing customers
Speaker:as fast as you gain them, making true profitability and impossible dream.
Speaker:Now, let's talk about cashflow.
Speaker:Remember, we covered cashflow in the first episode where I wanna revisit that some.
Speaker:This is exactly what my client and I mentioned earlier, experienced.
Speaker:If you think that cash flow is bad now wait until you scale.
Speaker:'cause here's the truth and hear me on this.
Speaker:Cashflow is a constant roller coaster and it's the part a lot
Speaker:of people don't wanna talk about.
Speaker:Even with more revenue coming in in the door, you just assume I got
Speaker:more revenue coming in the door.
Speaker:Oh, cash flow's gonna be better.
Speaker:We talked about this in episode four.
Speaker:Remember when I said are you, are you still busy but broke?
Speaker:Is money coming in but disappearing just as fast, leaving you scrambling
Speaker:to pay for payroll or unexpected expenses or even your own meager salary.
Speaker:I can't tell you how many times my small business clients went for months or
Speaker:even years with no paycheck, but that, that's a topic for a whole nother show.
Speaker:And the pain here continued paralyzing financial anxiety
Speaker:that gnaws at you day and night.
Speaker:Because here's the thing, you gotta understand, and I tried
Speaker:to express this to this client.
Speaker:Scaling demands capital.
Speaker:You've got to have money because you're gonna have more staff.
Speaker:You're gonna have more inventory.
Speaker:You're probably gonna need a bigger space.
Speaker:You're gonna need more aggressive marketing.
Speaker:You get the idea more, more and more, which means more cash, more credit, and
Speaker:more loans, which means more payments.
Speaker:If your cashflow isn't solid, if it's not predictable, and if it's not managed
Speaker:well at your current size, scaling is gonna throw you into a deeper, more
Speaker:dangerous hole of debt and a deeper, more dangerous level of instability.
Speaker:And that my friends, is a terrifying place to be.
Speaker:And last but certainly not least, I could have put this one first.
Speaker:You or your key people are constantly overwhelmed.
Speaker:I don't know how many my clients have said this to me, Ralph.
Speaker:I'm, oh, I'm, I'm just completely overwhelmed.
Speaker:So look around honestly and ask yourself, are you, are your most
Speaker:vital employees already working 60, 70, 80 plus hours a week?
Speaker:Are you always putting out fires if you're feeling stretched to the breaking point?
Speaker:Sacrificing your personal time, sacrificing your family time?
Speaker:Oh, and not to mention your physical and mental health.
Speaker:So not only is your business struggling, but maybe your marriage is struggling,
Speaker:your relationship with your kids is not existent, and when was the last time you
Speaker:had a healthy meal or got some exercise?
Speaker:The pain is palpable.
Speaker:Complete burnout, silent resentment among your team, devastatingly high
Speaker:employee turnover that cost a fortune in recruiting and training and the
Speaker:crushing reliance on one or two individuals for absolutely everything.
Speaker:And scaling just simply adds more work to already overloaded plates, leading
Speaker:to what I'll call the total collapse of morale and operational capacity.
Speaker:See, this is how you lose your best people and ultimately you're gonna lose yourself.
Speaker:So let's just pause here for a second.
Speaker:If any of these resonate with you, my friend, hear me.
Speaker:Before you scale, your foundation needs urgent, loving attention.
Speaker:And listen, This is not about halting your dream, it's about making your
Speaker:next stage of growth sustainable, joyful, and genuinely exciting
Speaker:rather than the other side of this.
Speaker:And what I've talked about today is terrifying and it's destructive.
Speaker:There is good news here, and this is what I'll call truly liberating news.
Speaker:The truth is, acknowledging these cracks is the first most
Speaker:courageous step that you can take.
Speaker:Acknowledge them.
Speaker:Put those out there because you've got the power, the incredible grit to fix this.
Speaker:And see this isn't about abandon your ambition.
Speaker:You don't have to abandon your ambition.
Speaker:It's bigger than that.
Speaker:It's about strategic pauses and deliberate intelligent building.
Speaker:It's about securing your future and protecting the dream.
Speaker:You've worked so hard to get to.
Speaker:Have I made my case today?
Speaker:I think I have.
Speaker:Alright, well let's get to the actions that you can take, because I never
Speaker:wanna do a show where I don't give you something that you can take away with.
Speaker:Now let me be bold.
Speaker:These aren't just actions that you can take, these are
Speaker:steps that you've got to take.
Speaker:So you got your pen and paper ready, don't worry I'm gonna have an
Speaker:action sheet, for this show later on.
Speaker:I'm gonna talk about that later on in the show.
Speaker:But I wanna give you some concrete, actionable steps that you can
Speaker:take this week to begin fixing your foundation before you scale.
Speaker:Number one thing.
Speaker:I want you to document one core process in your business.
Speaker:Let's call this your business's how to Bible.
Speaker:I just want you to pick one mission critical process that
Speaker:you or your team constantly.
Speaker:Maybe it's how you onboard a new client or how you deliver your primary service
Speaker:from start to finish, how you manage your inventory or how you close out a project.
Speaker:Take the time, even if it's just 30 or 60 minutes to document every
Speaker:single step in your business.
Speaker:Write it down, even if it's just simple bullet points,
Speaker:or create a basic flow chart.
Speaker:' cause this simple act immediately reveals inefficiencies.
Speaker:It.
Speaker:It identifies bottlenecks and it truly creates a repeatable system.
Speaker:This, is the first tangible step to being able to delegate effectively, train
Speaker:new staff more easily and ensure that consistent quality, even when you're not
Speaker:personally overseeing every single thing.
Speaker:And that is a huge stress point for a lot of small business people.
Speaker:They wanna oversee every single thing, and what they don't realize is they can't
Speaker:scale if they're doing it all themselves.
Speaker:It's building your business instruction manual.
Speaker:Now, listen, I've done this with many businesses that
Speaker:I've coached over the years.
Speaker:It is incredibly an effective process.
Speaker:In fact, right now I'm doing this with my staff of my accounting
Speaker:firm, and it's amazing how many inefficiencies we've already found
Speaker:and we are just getting started.
Speaker:Well, let's move on to my second recommendation today.
Speaker:You've got to identify your capacity breakers, those things
Speaker:that are breaking your capacity and design a solution for that.
Speaker:Ask yourself this very important question, where are you or your core team
Speaker:members consistently hitting that wall?
Speaker:What's causing the biggest bottleneck in your daily business flow?
Speaker:Maybe for you, it's responding to every single inquiry.
Speaker:Personally, like I said, you've got to delegate.
Speaker:You gotta learn how to be effective in delegation.
Speaker:you're spending too much time on administrative tasks.
Speaker:Do any of these sound familiar to you?
Speaker:Now listen, don't judge yourself If you wanna get somewhere,
Speaker:you gotta start being honest.
Speaker:If you're being honest, most of us have dealt with these issues at some
Speaker:time in our business journey, but right now it's time to pinpoint the biggest
Speaker:constraint on your current capacity.
Speaker:What is your biggest constraint on your current capacity of what you're doing?
Speaker:And once you've identified it, it's time to explore some solutions
Speaker:before you add more volume.
Speaker:You can't add more volume if you don't have a good system in place to begin with.
Speaker:Consider a couple things.
Speaker:Can you automate a piece of your workflow with simple software?
Speaker:I've seen many businesses have benefits from implementing just
Speaker:a simple piece of software.
Speaker:I know a lot of my clients that are skilled trades and all that use software
Speaker:out on the road to manage their jobs, and that's really been helpful for them.
Speaker:Maybe for you, you might think about outsourcing specific task to a freelancer,
Speaker:even if it's just a few hours a week.
Speaker:Maybe ask yourself, can you batch similar tests together to improve efficiency?
Speaker:Maybe in your business?
Speaker:You need to set clearer boundaries with your clients on your expected
Speaker:response time, but you've gotta study.
Speaker:You've gotta figure out what those things are because this targeted
Speaker:effort helps you understand your true capacity and how to expand it smartly.
Speaker:without everyone burning out and listen, this is mission
Speaker:critical for your business.
Speaker:Well, here's another suggestion, another thing I want you to consider, audit
Speaker:your business customer experience.
Speaker:For consistency, I want you to be your own customer.
Speaker:This is a vital thing that you must do for your business.
Speaker:Put yourself genuinely in your customer's shoes.
Speaker:Start from the very first contact with your business through that
Speaker:sales process, through the service delivery, and even post-delivery.
Speaker:Follow-up and ask yourself this very difficult, agonizing question,
Speaker:what is their experience like?
Speaker:Is it consistently excellent regardless of who they interact
Speaker:with or, or how busy you are?
Speaker:Ask for candid feedback from some of your recent clients.
Speaker:Look at, look at some of the common complaints or recurring
Speaker:questions that you get.
Speaker:Or even you can, you can even secretly shop your own business if you've got a
Speaker:trusted friend who will do it for you.
Speaker:And right now, like I said, I'm doing this with my own staff.
Speaker:We've already found some serious deficiencies in our own telephone system.
Speaker:And we're making adjustments to improve customer contact right away.
Speaker:We're asking our clients for feedback and more importantly,
Speaker:this is the most important part.
Speaker:If you're gonna ask for feedback, act on their recommendations.
Speaker:I'm not telling you to act on every single thing they tell you, but do
Speaker:listen and do act on some of these.
Speaker:You gotta do the same thing in your business.
Speaker:So I'm gonna encourage you today, identify one or two points where the experience is
Speaker:inconsistent or the experience drops off.
Speaker:'cause here's a powerful truth and it's one you've got to hear and understand.
Speaker:The reputation of your business is built on consistency and scaling
Speaker:means you need to deliver that consistency to more people more often.
Speaker:I wanna say that again 'cause you need to hear this.
Speaker:Your reputation is built on consistency.
Speaker:Scaling.
Speaker:Making your business larger means you need to deliver that consistency
Speaker:to more people more often and see.
Speaker:Fixing these gaps now will lead to massive referral business and raving fans later.
Speaker:I. Because you'll be building what I call brand ambassadors,
Speaker:and hear me again on this.
Speaker:Every business needs some amazing brand ambassadors.
Speaker:I'll tell you, I love it when I see one of my clients referring
Speaker:others to me on Facebook.
Speaker:Those are my brand ambassadors and let me tell you, they are
Speaker:the key to my business growth.
Speaker:So find your brand ambassadors today and reach out and thank them.
Speaker:They are helping you grow your business.
Speaker:Let's talk finances.
Speaker:You know everyone's favorite subject finances.
Speaker:This is the time where you've got to bolster your financial buffer,
Speaker:your business emergency fund.
Speaker:This connects directly to what I talked about in episode four, and if you haven't
Speaker:reviewed that episode, I'm gonna recommend it to check it out before you're scaling.
Speaker:So before you scale, you must, have a stronger financial cushion.
Speaker:Think back to that client I told you about.
Speaker:I mentioned that earlier.
Speaker:That was his biggest downfall.
Speaker:He didn't have that emergency cushion.
Speaker:So I'm gonna tell you right now, you gotta aim to have a cash reserve that
Speaker:can cover at least two to four weeks of essential operating expenses.
Speaker:That's the bare minimum, two to four weeks.
Speaker:Now listen, if you're in a construction or other similar areas or, or
Speaker:you've got a lot of overhead, this needs to expand and hear me on
Speaker:this at least three to six months.
Speaker:So if you're thinking about starting a business and you don't have three
Speaker:to six months worth of working capital, it's not the time to start a
Speaker:business because this buffer allows you to absorb those unexpected costs.
Speaker:Because if you've been in business for any length of time, you
Speaker:know the unexpected happens.
Speaker:I. It's gonna help you manage those cashflow fluctuations and,
Speaker:and fund those small improvements without going into panic mode.
Speaker:I don't know how many times over the years I've had clients call me in a panic,
Speaker:Ralph, I've gotta do this, this emergency repair comes up, this machine broke down.
Speaker:Uh, the, the truck broke down.
Speaker:I need to Yes, all of those things.
Speaker:And if you don't have that financial buffer, you're going to be in panic mode.
Speaker:Think of it like this.
Speaker:If you try to scale without a buffer, it's like going to war
Speaker:without supplies, you're gonna be constantly on the brink of disaster.
Speaker:And every little hiccup I'm talking about, every small hiccup becomes a major crisis.
Speaker:But that buffer, that buffer buys you peace of mind.
Speaker:It buys you strategic flexibility and the ability to actually sleep at night.
Speaker:Now, I know I've covered a lot today.
Speaker:I bet you're feeling a bit overwhelmed at this point.
Speaker:I get it.
Speaker:See, this pressure can can grow to feel immense, almost
Speaker:intoxicating that pressure to grow.
Speaker:But true growth, sustainable growth is built on strength, not speed.
Speaker:I'm gonna repeat that 'cause you've got to hear that.
Speaker:True growth, sustainable growth.
Speaker:Is built on strength, not speed.
Speaker:It's about being deliberate.
Speaker:It's about being intentional and being incredibly courageous even to slow down.
Speaker:It's okay to slow down.
Speaker:It's okay to take a minute, identify the cracks, fix what's broken, and
Speaker:build that solid foundation before you construct that next story.
Speaker:This isn't delaying your dream, it's guaranteeing its survival.
Speaker:See, you've got the grit to push, but now let's apply that grit to pause to perfect
Speaker:and to truly strengthen that foundation.
Speaker:I say this to business clients all the time.
Speaker:It all starts with a strong foundation, and this discipline
Speaker:approach is the true mark of a successful, enduring entrepreneur.
Speaker:So, as I promised earlier, I wanna help you during this critical phase.
Speaker:I've created a simple action plan sheet for this episode.
Speaker:It's called Fix Your Foundation Before You Scale.
Speaker:It's free.
Speaker:It's a downloadable sheet that will guide you through documenting a core
Speaker:process, identifying your capacity breakers, auditing your customer
Speaker:service experience for consistency and calculating your financial buffer needs.
Speaker:It's a practical tool to help you build that solid foundation for your
Speaker:next stage of growth with confidence.
Speaker:And with peace of mind, You can download it right now by
Speaker:going and visiting our website.
Speaker:Just go to grit and growth business.com/action.
Speaker:Again, that's grit and growth business.com/action.
Speaker:Download the action plan sheet and start shoring up your business
Speaker:for real sustainable growth.
Speaker:Listen, the decision to scale is exciting.
Speaker:That decision is scale smart.
Speaker:That's what separates long-term winners from those who crash and burn.
Speaker:You've worked too hard, you've sacrificed too much to let a shaky
Speaker:foundation derail your dreams.
Speaker:Take this time to build it right.
Speaker:The stability you gain now will pay dividends in peace.
Speaker:It'll pay dividends in profit and in the end.
Speaker:True freedom.
Speaker:You've got this.
Speaker:I'm right here walking alongside you every step of the way.
Speaker:So thank you for joining me on Grit and Growth Business.
Speaker:I'm committed to bringing you honest conversations and practical
Speaker:strategies every single week to help you build your business the right way.
Speaker:Now next week we're gonna dive into another highly relatable topic for
Speaker:anyone feeling stretched thin and struggling with their emotional reserves.
Speaker:It's called burned Out.
Speaker:Let's rebuild.
Speaker:We're gonna explore the painful signs of burnout and how to
Speaker:systematically reignite your passion and your energy for your business.
Speaker:So make sure you don't miss our next meeting, and don't forget to download your
Speaker:free action plan sheet for the episode at grit and growth business.com/action.
Speaker:Remember, You've got the grit now let's get to the growth one step at a time.
Speaker:God bless you, and I'll see you next week on grit and growth business
Speaker:strategies to grow your business.
Speaker:And remember, we're just getting started.