Training

Michael Martin, vice president of Operations for Outside Unlimited, based in Hampstead, MD, says that finding the right people to take key roles within your company goes hand in hand with your ability to train them.

"You have to invest time and effort in training them to take on and understand new responsibilities," Martin says. "You cannot put them on an island and expect them to act exactly like you. Put processes in place or else you'll be disappointed and frustrated with the results."

Corporate culture

Bob Maffei, owner of Maffei Landscape in Mashpee, MA, agrees that finding the right talent is the biggest sticking point.

"Especially when you're small, you cannot invest in the wrong people," says Maffei. "At $1 million, the business is driven by the owner. But when your company gets larger, you start to have many people working together to manage the culture of the company. And if they're not on the same page with you, it's going to affect how employees and customers view your business."

Maffei says his company invests heavily in recruiting new talent from both the college ranks and elsewhere in the professional world. The company tests, trains and monitors employees to find the right people for the right job, and to groom them for their new roles.

"We've worked hard to remove any negative energy from the company. It's about getting the right people on the bus and the wrong people off."

Diversity

One way that won't help jumpstart a stalled business is grabbing any and all work. You might increase your revenues by cutting prices and grabbing new clients, offering new services, or marketing in areas outside of your service zone, but if those jobs aren't profitable, they're only going to hinder you by monopolizing your time, employees, equipment and capital.

"Anyone who thinks they can grow themselves out of a problem are fooling themselves," says Coulter. "When customers ask 'Do you do this?' it's easy to say 'yes.' Before you take on new jobs, make the business case for offering the service. Margins almost always deteriorate when you become too diversified."

"Keep your focus narrow and deliver a product that's above market conditions. If you concentrate on making good margins on the right customers, you'll know where to grow and what your market will bear."

That's not to say you should never offer any new services. Martin says Outside Unlimited has been able to grow to the $18 million range because it has diversified smartly.

EXECUTIVE VIEW

Martin explains that Outside Unlimited began offering irrigation services because a single employee took it upon himself to become educated on the subject. Irrigation has since become its own department in the company, providing about 15% of the total revenue.

"By communicating with customers and peers, you'll open yourself up to new ideas," Martin says.

Branching out

Like Martin said, you can only make so much money in one area. Between geographic and competitive limitations, once your company gets to a certain size, you may have to branch out to reach new customers.

Coulter says that after getting past the $4.5 million mark, a company may begin to think about a second branch, either by natural growth or through acquisition. Even so, again, you have to have the right personnel and the right culture to replicate your success in the new location.

"We're at $8 million and we're busting at the seams at this location," says Maffei. "I know I can't do $20 million in one location. But we won't move forward until we have the right people in place to make that transition, so that I can effectively track and manage the company through multiple branches."

Roughly six years ago, with the company hovering around the $7 million mark, Martin decided to open his Northern Virginia / Washington, D.C. branch.

"We had a really good handle on the Baltimore market, and didn't think we'd be able to grow much more in our 45-minute radius," Martin says. "Because of geography and traffic, we couldn't get to the Washington market without great expense and a hour-and-a-half drive time."

Michael Martin, VP, Operations, Outside Unlimited

"I just wanted a small piece of the D.C. pie — I didn't come in expecting $7 million right away," he says. "We knew there was work; we knew the vendors, and once we didn't have a 3-hour drive time, we became competitive in the market. In six years, this branch has grown from zero to $4 million."

Pressure build-up

If your business is not growing the way you think it should, don't be discouraged. It happens. Be rationale, focus on your strengths, continue to develop the right personnel and make the business case for all new initiatives.

While we may think we can do it all ourselves, even the best companies bring in a consultant to get a perspective on those areas that need to be improved or possibly even overhauled.

"The thing to remember when you may be stalled is that there's no need to reinvent the wheel," Maffei says. "There are people out there who have gone through the same situation. Look to them for help. Without the help of friends and consultants, I never would have made the jump from $4 million to $8 million."

Rak says he plans to work with consultants and others, like JP Horizons, to help him jumpstart his business, and help him find that element which will differentiate his company in the market.

And as Maffei says — once the infrastructure is in place, once the right people are on board, get ready for a ride.

"You can spend half your life getting to $1 million, but the run from $1 million to $2.5 million feels like a month," Maffei says. "There's a pressure building up, and once all the pieces are in place and your systems are built to handle that level of sales, you can just breakout, and all of a sudden it gets easy."