In conversation with one of my son’s mentors last week, the discussion meandered into business finance and the need for growth. An experienced FD, Richard Stone made the point that even when your business is in a point of perfect commercial balance, you still need to be growing. Especially now, inflation will eat away at you fast, and you’ll shrink, wither, and die. Staying still just isn’t an option. 

In the words of the renowned business thinker Peter Drucker, "Whenever you see a successful business, someone once made a courageous decision"

Starting and scaling businesses is akin to setting sail into uncharted waters – it starts with a leap of faith; it’s exhilarating and fraught with unknowns throughout. But it is immensely rewarding for those who can navigate with creativity, skill and foresight. 

Let’s embark on this fantastic voyage together and take a look at what it takes to grow and scale. And let's remember that scaling isn't merely about growing bigger; it's about growing smarter. 

Laying the Foundation

The Business Health Check

Before we chart a course for new horizons, it’s imperative to know where our ship currently lies. This begins with a rigorous business health check. 

Around Tables, the closed peer groups curated by TableNetwork that empower leaders to support each other to reduce risk and achieve growth, reviewing analytics, assessment and planning is an annual activity that includes gaining clarity of your cashflow position. The process continually proves to help leaders plan successfully and identify both threats and opportunities for growth, allowing them to outpace the competition. 

A study by Harvard Business Review from 2018 highlighted that companies which regularly assess their performance with clear metrics are 2.5 times more likely to succeed in scaling efforts (Harvard Business Review, 2018). What's your customer acquisition cost, churn rate, or employee turnover? And most importantly how many products and at what cost for each will hit your target? These aren’t just numbers; they are the vital indicators of your business's health. 

Identifying blockers to your growth and success are also imperative, and this transcends the tangible as it also delves into the psychological. What are your limiting beliefs, old habits, the thought patterns anchoring you in yesterday's successes, hindering tomorrow's? Conduct a thorough audit, not just of your business, but of yourself. Envision a business free of these shackles, and start chiselling away at what holds you back.

Crafting Your North Star

Vision and mission statements aren’t just corporate fluff – they are the North Star guiding your business voyage. Simon Sinek, in his insightful book Start With Why, argues that companies which articulate their ‘why’ attract customers and employees who share their fundamental beliefs, fostering growth and loyalty. 

Businesses that deliver on the vision articulated and meet and exceed expectations, accrue Raving Fans. The result is reduced marketing costs. Your vision is your symphony's opening note; make it resonate. And with all the competition out there, it has never been more important to make your note unique. 

The question “Why You, Not Others?” isn't just a question; it's a clarion call to redefine your market presence. It's about ceasing the cycle of competing in the same arena and instead finding a unique product-market fit. A product or service so compelling that it stands out not just in consciousness but in practice. Think of it as culinary innovation in a saturated food market – offering a dish so unique, it becomes the talk of the town. Being different is now the secret to winning. 

The Orchestra Plays the Music

The strength of a business, like that of an orchestra, lies in its ensemble. Jim Collins, in Good to Great, stated, “Get the right people on the bus, the wrong people off the bus, and the right people in the right seats.” 

I spent a couple of days with Roger Hamilton last week, the hugely insightful creator of Wealth Dynamics. As well as both being sponges, and resultantly fans of the Lex Fridman Podcast, we both value allowing people’s natural persuasions to shine. Since I came across Wealth Dynamics I have used it to help me build my teams, and on occasion I’ve ignored it at my peril! 

Your team is your greatest asset in scaling. They are the violinists, cellists, and pianists who transform the notes of your vision into a harmonious symphony. Use them for what they do best, yes, but also for where they want to be. People are far more likely to walk the extra mile if the landscape is to their liking. Effective leadership and management are the conductors of this orchestra, guiding and inspiring the team towards the unified vision of the company. 

Financial Finesse

Keeping the Ski Lifts Running

In the exhilarating world of skiing, maintaining operational ski lifts is crucial for everyone to have a successful day on the slopes. Similarly, in business, cash flow is the lifeline that keeps operations running smoothly. Strange that, in the early years of a business, the Cashflow Forecast is by far the most important of the 3 financial measures, and yet it is the one most entrepreneurs have no sight of. 

A 2019 study by U.S. Bank found that 82% of businesses fail due to poor cash flow management. Effective cash flow management involves meticulous forecasting, prudent expense management, and timely receivables. Remember, a business without positive cash flow is like a ski resort with broken lifts – it makes it very hard to ski a good number of runs.

Navigating the Investment Terrain

Scaling a business can require more than your current cash flow can support. This is where the art of navigating the investment terrain comes in and having clarity over cash flow enables you to forecast and plan for this in advance. 

A report by Ernst & Young in 2017 highlighted that businesses which effectively leverage external funding are 3.5 times more likely to achieve high growth. 

Conversely it would seem, many of the household names that we think of as mega investable were bootstrapped in the early days, and these range from Coca-Cola to Microsoft. I could easily list over 100 investible companies that started with little to no funding, and there is evidence that start-ups are more likely to succeed if they’ve no funding in start-up phase. 

When you are looking to acquire funding, whether it’s venture capital, angel investment, or bank loans you require, understanding the nuances of each funding source is akin to choosing the right ski equipment – each has its unique purpose and fit.

More Than Just Numbers on a Spreadsheet

Budgeting in business is akin to composing a culinary masterpiece. It's not just about the ingredients (costs) and the final dish (product), but also about the process (systems), the adjustments (volumes), and the balance of flavours (harmony) that come together and delight (produce profit). 

A Harvard Business School publication from 2020 revealed that companies with effective budgeting processes are 10% more profitable than those without. 

Smart budgeting involves aligning your financial resources with strategic objectives, much like crafting a menu that balances cost with culinary delight. Here, leveraging data-driven decision making is paramount. Utilizing analytics and insights transforms financial planning from a guessing game into a strategic advantage. 

Operational Excellence

The Rhythms of a Well-Oiled Machine

In the realm of music, each note must be played at the right time and with the right intensity to create that harmonious melody. Similarly, in business, operational excellence is achieved when every process and system work in synchrony. 

And armed with the knowledge of your blockers, it's time to obliterate these bottlenecks. Think of it as pruning a well-loved vine, ensuring its future growth is robust and more fruitful. 

Whether it's automating the mundane, streamlining processes, or reprogramming unproductive thought patterns, each action is a step towards a more efficient and liberated business operation. 

McKinsey & Company reported in 2021 that companies focusing on operational efficiency could see profit margin improvements of up to 60%. 

As business owners we need to streamline workflows, concentrate on optimising supply chains, and ensure that each component of the business operates with precision and efficiency. To sound like a well-rehearsed orchestra we must run a well-oiled machine.

The Digital Chef in the Kitchen

Just as a master chef uses the finest tools and techniques to create culinary wonders, a business must leverage technology to scale effectively. Cultivating a culture of innovation within the team is just as crucial. This culture encourages creative problem-solving and can lead to breakthroughs in operational efficiency, especially through empowerment. 

A study by Deloitte in 2020 revealed that companies embracing digital transformation are twice as likely to achieve higher growth rates compared to those that don’t. The report considers everything from customer relationship management systems to automation tools. Technology is the secret ingredient that can transform the efficiency and scalability of your business. 

I would now say that the Deloitte report is already out of date. In the last 12 months, ChatGPT has shown the world that AI is a force to be reckoned with, and there are an increasing number of apps to enhance almost every business activity. We will start to see individuals become billionaires, using only AI bots as their workforce. I fear that those not embracing and using AI to enhance and scale their activities will be fast left behind in the new world. 

Striking the Perfect Chord

Quality and efficiency in business are akin to playing sumptuous chords in music – they bring the glory of harmony and resonance to your operations. 

A Bain & Company analysis found that companies that prioritize quality management and efficient practices outperform their competitors by up to 25% in customer satisfaction and operational performance (Bain & Company, 2019). Striking this balance is essential for scaling, as it ensures not only growth but sustainable and reputable growth. 

Marketing and Sales Strategies

Who is Your Audience? 

In the world of music, understanding your audience is key to a successful performance. This is why smaller venues so often lead to better concert experiences. I’ve just secured tickets to see Jacob Collier at the end of 2024, and rather than see him in London’s O2, which tends to swallow up even the greatest artists, we will head to Paris and see him in a much smaller, more intimate venue, where he can respond successfully to the mood of his audience. 

The same holds true in business. But market understanding is not just about knowing who your customers are. It’s also understanding their needs, desires, and behaviours, and where they reside. A Nielsen study from 2018 found that businesses that deeply understand their target market can increase their sales effectiveness by up to 70%. Knowledge of your market allows you to tailor your marketing and sales strategies effectively, ensuring that your message resonates with your audience. Adopting a customer-centric approach in these strategies is key. Understanding and prioritizing customer needs and experiences can dramatically increase engagement and loyalty. 

I was accidentally fortunate as a young property refurb and flip operator. I lived in Hackney and was of the mindset of those moving in and transforming the demographic. As a result, I innately understood and desired the same as my market, so the style and facilities implemented in my refurbs, flew off the shelf. One flat I purchased was rather badly laid out – you had to nearly walk through the bathroom to get to the kitchen. I wanted to knock through to the lounge to make the kitchen open plan. There were structural elements to overcome and I decided a Zen hole to walk through would be nice. This idea of Zen Buddhism went down very well with all visitors, both tenants and purchasers, and another success was achieved. 

The sales funnel, much like a conductor's baton, guides the customer's journey from awareness to conversion. Scrutinize each stage – the top, middle, and bottom – and identify where the melody falters. If lost for a way through, you can utilize AI for assistance. Use tools like ChatGPT to pinpoint your weak links and orchestrate a strategy that turns these points of falter into crescendos of success.

Most importantly of course, understanding how your product or service was received is crucial to being able to consistently run a class leading business. eBay transformed the world in this regard, and Amazon has set the standard for it’s continued use. There are flaws to both systems and the ingenuity of manipulation always intrigues. 

Nowadays feedback and reviews are significant, if not imperative. Obtaining positive feedback helps obtain new clients and obtaining truthful feedback allows you to improve, and ensure the experience you provide is consistently glowing! 

The Art of Culinary Seduction

Sales strategies in business can be likened to the art of culinary seduction. Or even the often-wonderful wax models found in the windows of Japanese restaurants. It's about creating an offering so compelling that your customers can’t resist. 

The Harvard Business Review noted in 2019 that companies with innovative sales strategies see a 15-20% increase in customer engagement. This involves understanding the psychology of selling, building strong relationships, and consistently delivering value that delights and entices your customers. 

Painting Your Business Canvas

Finally, brand building. Brand is about painting the canvas of your business with the colours of its outwardly facing identity, and extolling the virtues of trust and value. Trust is increasingly important in today’s world, as large institutions and governments are more distrusted than ever by our younger savvy generations. 

A Forbes study in 2018 indicated that strong branding can increase the value of a company by up to 20%. 

Your brand is more than your logo or colour scheme; it's the emotional and psychological relationship you build with your customers. It’s about creating a story and an experience that customers want to be a part of. As a lover of music, I always look to Bowie and Prince when I think of brand being used to amazing effect. 

Innovation and Adaptation

Skiing on the Edge of Innovation

Just as a skilled skier navigates the ever-changing slopes, and even skis constantly get updated to improve performance, businesses must also constantly innovate to stay ahead. In this vein, embracing change and adaptability as core competencies are vital. The ability to pivot and embrace new methodologies or market trends can be the difference between merely surviving, and thriving.

A 2022 report by Boston Consulting Group highlighted that companies prioritizing innovation see 5.5 times more revenue growth than their non-innovative counterparts. Innovation isn’t just about new products; it's about rethinking processes, customer experiences, and business models, always aiming to stay one step ahead of the market’s twists and turns. 

And to achieve this, business leaders need time out, time set aside to think and plan, like the days spent around Tables. John Cleese of Monty Python said you need to get bored before you can be creative and there is plenty of evidence that in person meetings increase creativity far more than Zoom calls, enhancing the power of the solutions generated during them. 

Adapting to Changes in the Wind 

The business world, much like the sea, is in constant flux. Adaptability is key to survival and growth. A study by Accenture in 2021 found that adaptable businesses report 50% higher profitability compared to less flexible competitors. Whether it's shifting market trends or global disruptions, businesses that can pivot and adapt are like agile sailboats navigating through stormy seas – they not only survive the storm but emerge stronger. 

Helping with adaption is the service I have enjoyed helping businesses with for some years now, and it is also one of the core values of the Table experience. 

Remaining agile is key. Nobody wants to be sailing the Titanic when the iceberg appears! 

Feasting on Knowledge

In the world of haute cuisine, a chef’s learning never ends. For musicians, practice and exploration maintain the soul. Each dish, or performance, is an opportunity to evolve. Similarly, in business, continuous learning and development are essential. Forbes noted in 2019 that organizations committed to continuous learning see 37% higher productivity. 

Ongoing learning may be about emerging technologies, new management techniques, or understanding evolving consumer behaviour. It’s about constantly feeding your curiosity and knowledge to stay relevant and competitive. 

“I see life almost like on long University education that I never had – every day I’m learning something new.” Richard Branson. 

Scaling Internationally

From Local Delicacies to a Global Buffet

Expanding your business internationally is like introducing your local culinary specialties to a global buffet. It opens up a world of opportunities. 

And the world and markets are no longer local, but niche. The rise of the internet saw to this, whereby a shop specialising in the most specific tastes can obtain thousands of customers from all over the world, often gathering them together in a community where they sense belonging. People are in their essence tribal, but the boundaries are no longer geographic. 

TableNetwork’s online community space seeks to do exactly this, bringing business leaders under one roof to support each other. It’s not for everyone and it doesn’t have to be. It is for people who want to lead, to succeed, to give and receive, and to support the reduction of homelessness while gaining power from the inevitable community centric commerce that spirals upwards. And while starting with UK businesses, TableNetwork already has its first leaders from elsewhere, and is starting to venture across the globe to support all entrepreneurial spirits. 

According to a 2021 report by McKinsey & Company, businesses that expand globally can see up to a 60% increase in overall performance. However, this requires understanding different cultural nuances, regulatory landscapes, and market dynamics – it's about carefully adapting your recipe to suit global tastes while maintaining its core essence.

The Music of Different Lands

When a musician plays to an audience from a different culture, they often blend their style with local sounds. We witness this all the time. Buena Vista Social Club is probably the best-known Cuban album, and for good reason. The album plays on the sensibilities of international taste, and to have opened Cuban music up to such a wide audience is, arguably, one of Ry Cooder’s greatest achievements. 

My own favourite example plays out (excuse the pun) in the Thin White Duke period of David Bowie. A master of brand creation, Bowie was a phenomenal example of how creativity can be used to great effect in brand building. Having shocked the world to its core with his very unique take on Glam Rock, syncing with his target audience as Ziggy Stardust, Bowie looked to move to New York. Seeing the likes of Hall and Oats leading on from Aretha and James Brown, his never-ending global tour, starting in late 1973, absorbed more and more from the U.S. as he spent more time there. He absorbed jazz along the way, and by the Detroit gigs in October 1974 he sounded like a soul singer through and through while playing with funk rhythms. 

In business, cultural adaptation is also crucial for international success. Harvard Business Review in 2019 revealed that businesses that effectively adapt to different cultural contexts can increase their market share by up to 25%. Understanding and respecting local customs, values, and business practices isn’t just polite – it’s also profitable. 

And this respect of customs and needs abroad applies to how we treat and respond to our teams as well. Not only is complying with local laws imperative, understanding the expectations of local employees and exceeding what they can get elsewhere, can assist with both satisfaction and loyalty, and in turn improve productivity and profitability. 

Forming Alliances 

In the age of exploration, successful voyages often depended on strategic alliances. Many an empire has fallen by not observing this fact and the same applies to business. While addressing internal challenges, don't overlook the power of strategic partnerships. Like a skilled artist collaborating to create a masterpiece, seek those in your industry who complement your strengths. These partnerships are not just about shared goals but about tapping into new audiences, fresh ideas, and novel approaches that could catapult your business to new heights.

PwC has clearly demonstrated its belief that engaging in strategic partnerships creates growth. Partnering with Amazon, Google, Oracle, Salesforce and more, they even hold Alliances Summits each year. Whether it’s joint ventures, alliances, or mergers, partnerships can provide local insights, shared resources, and enhanced market reach. 

Similarly, alliance is one of the key benefits of a Table. The Members of your Table become effectively your non-execs, the crewmates that help you navigate the complex waters of business. 

Sustainability and Responsibility

The Harmony of Business and Morality

In a symphony, harmony is essential for the piece to resonate with its audience. Ethical practices in business help to ensure long-term resonance with customers, employees, and stakeholders. A 2021 survey by Nielsen revealed that 66% of consumers are willing to pay more for products from companies committed to ethical practices. 

Increasingly ethical business practices aren't just morally right; they're a cornerstone for sustainable growth, building trust and loyalty that transcend mere transactions. And as noted above, trust has never been more important to build. 

Treading Lightly on the Ski Slopes

Just as a responsible skier respects the mountain, a sustainable business respects the environment. The Morgan Stanley Institute for Sustainable Investing reported in 2020 that sustainable investment funds have consistently outperformed traditional funds. 

Embracing environmentally friendly practices isn't just about reducing your carbon footprint; it’s about investing in the planet’s future while securing the longevity for your business. Risk management and contingency planning are also essential for sustainability. By anticipating and preparing for potential challenges, businesses can navigate uncertainties more effectively. 

For smaller companies it can appear difficult to measure and assess our environmental impact, and while there remains more legal requirement to make profit than protect our planet, it can be hard to justify spending time and money cleaning up our practices. Be aware that your customers almost certainly do care, and in time those leading the charge for sustainability will win the race. Slow and steady whispers the tortoise. 

Chorus for Community 

Finally, true business success goes beyond profit, and it goes beyond transaction. It’s about contributing to the society that sustains it, and the spiral leads upwards. A RingCentral article qualifies this effect well, stating Gallup found that engaged employees drive more sales, and Qualtrics found that satisfied customers increase employee engagement. 

Whether it’s supporting local initiatives, engaging in global causes or building a community of like-minded souls who belong together, supporting each other, employee and community engagement strengthens your business's social fabric, akin to a symphony that uplifts and unites its audience. 

If you’re an entrepreneur, a business owner, or a high-level executive of an SME, and you’ve yet to join the TableNetwork Community, please do. It is free to join, it’s a place to find and mix with many of the 3-5% of the population that are the entrepreneurial spirits in the world. We welcome you with open arms. 

Also please connect with me on LinkedIn. I always enjoy helping entrepreneurs with planning, strategy and pivots. 

#StrongerTogether 

Art, Science, and Soul

Scaling a business is a journey that never truly ends. As my friend says, if you’re not growing, you’re dying. And each peak reached, reveals another on the horizon. The goal is not just to grow bigger, but to grow better – to create a business that is not only profitable but also sustainable, ethical, and a positive force in the world.

As we conclude, let’s reflect on the art, science, and soul of scaling a business. It’s an art because it requires creativity and intuition; it’s a science because it relies on collected data and proven strategies; and it’s a soul because it must be done with ethical responsibility and a commitment to a greater good. 

Like the intricate dance of skiing, the delicate balance in a gourmet dish, or the careful composition of a symphony, scaling a business requires skill, passion, and a deep understanding of the many elements that must harmonize for success. Continuous learning, personal and professional development are crucial parts of this journey as they empower entrepreneurs to evolve with their businesses, ensuring they're always equipped to face new challenges. 

Ed Fowkes

December 2023