subject: Scalability: Letting go to grow [print this page] Scalability: Letting go to grow Scalability: Letting go to grow
My friend Terry Leake's Berkeley, business is exploding. He owns Innovative WindowWare, and he dresses naked windows.http://www.yelp.com/biz/innovative-window-ware-berkeley#query:terry m. leake
A lot of his success is attributable to what he calls the two-year rule--it takes that amount of time to build a clientele, network and get a referral system in place. He used to be an IT guy, so he's very savvy about using technology and can run his whole business from his iPhone at his local Peets. He's been advertising on Yelp for as long as I've known him at the $300/month level, and 60% of his business is coming from this source.
But what he's doing that is really smart is making his business scalable. This may sound easy, but it's not. It means letting go, which is very, very hard when we think about the sweat equity that has gone into the creation and nourishment of our businesses.
He figures that the time he spends on the phone is not time he's making any money, and he's crappy on the phone, so he's hired a very efficient receptionist service. They're courteous and responsive and can track him down anytime, anywhere.
He also gets a nice steady stream of referrals from a woman at the SF Design Center, and he shows his appreciation by passing along 5% of the profits on these jobs. This year he plans to get a line of credit for some serious marketing efforts which are part of his growth plan for 2011.
He's working with a new accounting firm that has in turn become a good client and is now giving him referrals. They also are making him spend some money, so he just leased a snappy new car that serves his needs in style. This year, we're working on a comprehensive SEO strategy for his website, and I'm trying to talk him into a newsletter.
He's very savvy about merchandising and is always on the lookout for ways to market his business. We took an SEO class to learn how to drive traffic to our websites. We are trying to figure out if a website is realistic or if we should focus on social media. We are playing with a few ideas, including a new service that sends flyers to real estate agents.
He's very attuned to creating strategic alliances. These are people whose provide products and/or services that complement his. Good alliances for Terry are real estate agents--they work with new homeowners who need window coverings. Any of the people who work in the trades are good power partners for Terry as well-- anyone who goes into homes or offices: electricians, contractors, painters and plumbers. Whenever a home is being prepared for new owners or is an opportunity for Terry.
One thing that Terry totally gets is networking. He values strategic alliances for the business that comes his way, but is also attuned to giving referrals.
Terry has become a very good businessman. Note that this didn't just happen. He's been working for himself for a long time and has made mistakes and learned from them. Like many of us who are entrepreneurs or sole proprietors, we learn that we're not very good employees, and that was the case for Terry. Owning his own company is not just a choice but a necessity for Terry. The best part of Terry's success? He passes along many of his ideas. I love this guy and he continues to inspire me
