Taking your Small Business to the Next Level: What does it Actually Mean? [examples]
About the Author: Ashley Thomson
We often hear business owners say, “I want to take my business to the next level.” In fact, as a business coach for small-medium businesses, I reckon I’ve heard that said at least 1,000 times since I started in this industry in 2002. That’s no exaggeration.
The surprising thing is that even though it’s one of the most universal expressions small business owners say, “the next level” means something different to each of them. And some people struggle to describe what “the next level” would even be.
So I thought I’d look at 8 main areas of business and explain what the next level might look like for each one. I’ve also included descriptions of what doing ok at your currently stage looks like.
Before I get into it, I wanted to make a really important point: Every business that is now operating at “the next level” went through the stage of “doing ok”. When you think of a business or a business operator you admire, they had to go through the growth stage to be in the “grown up” stage.
8 Areas of Business To Take to the Next Level
The 8 areas of business I’ll explore here are:
- Marketing
- Sales
- Operations
- Team
- Systems
- Finance
- Strategy
- Leadership
Of course there are other areas of business that we could look at but these 8 are the most relevant for a business that performs consistently well. As I go, I’ll provide some real examples of businesses or tactics that demonstrate how these concepts are applied.
1. Marketing for the Next Level
| Doing “ok” looks like: | Next Level is: |
|---|---|
| Branding exists but is inconsistent: You have a logo and a tagline but the rest of your messaging (for example your quotes, your marketing materials) is not up to scratch 100% of the time.
Your value proposition (the benefit you promise to provide customers) is unclear and you kind of look like every other operator. |
Strong Branding: You have a clear, well-defined brand identity that resonates with your target audience.
Your messaging is consistent: your brand says what you do across all your touchpoints. Your brand is easily recognisable when your vans or crew are spotted out and about. Example: Verve Electrical |
| Inconsistent Marketing Efforts: Marketing is something you do when you get have a spare minute. Or it’s only done when you don’t have enough work – it’s sprint and stop. | Integrated Marketing Strategy: Aligned marketing efforts across platforms with a long-term strategy and personalised messaging for specific customer segments.
Example: Barnes Matina |
| Online Presence Isn’t up to Scratch: Outdated website, low engagement on social media, poor search engine rankings. | Robust Online Presence: Modern, user-friendly website optimised for SEO, regularly producing valuable content, and active engagement on social media.
Example: Tenfold ;) |
| Marketing decisions are made on gut instinct: You’re doing what you’ve always done or you’re following the trend and doing everyone else is doing: social media posts, Google Ads, sponsoring the local footy team. Feels good to see your brand “out there” but you’re not actually sure if it’s working.
Your marketing efforts aren’t tracked, and decisions are made without data or analytics. |
Data-Driven Decisions: Marketing strategies are informed by data, with tracking of key metrics like customer acquisition cost and ROI, leading to optimisation.
Example: Tenfold SEO Effectiveness Report |
2. Sales for the Next Level of Business
| Doing ok looks like: | Next Level is: |
|---|---|
| Ad hoc Sales Process: Ask yourself (and answer honestly): is your sales process as good as it could be? If it is, anyone in your team should be able to describe it, and follow it. Without a defined process, your sales pipeline is likely to be inconsistent. |
Defined Sales Process: Structured sales process with clear stages (lead generation, qualification, proposal, closing, etc.) ensuring consistency and efficiency. Example: Skylark Sports – New Member Trial |
|
High Customer Acquisition Costs: Spending too much to acquire customers due to inefficient sales strategies. This is a common undiagnosed issue for businesses relying on Google Ads for leads. |
Efficient Customer Acquisition: Tracking lead sources and recording progress through your sales funnel enables you to improve your sales strategies. Better strategies means reduced costs and improved conversion rates. Example: Dynamic strategies to dial your sales activities up OR down to keep your pipeline at the right level. |
|
Conversion Rates are Too Low OR Too High: You are getting lots of enquiries and leads but few conversions. That indicates sub-standard follow-up or ineffective sales conversations. The flip side is too many conversions, when you’re winning almost 100% of your quotes. That’s a sign that your pricing is too low and you’re leaving money on the table. Example: Saying yes to every job |
Ideal Conversion Rates: The ideal level of conversion rates depends on your business. A mature business sets targets for conversions for the different types of work it wants to win. Plans are built to achieve those targets, with sales training, supporting collateral, targeted pitches and regular reviews for improvement. Example: A mature business can confidently knock back work that doesn’t fit the ideal model for client type or project. |
| Dependence on a Few Clients: Reliance on a small number of key clients, making the business vulnerable to their loss. | Diversified Client Base: A broad client base across different sectors, reducing risk and providing stability and growth opportunities. |
3. Operations for a “grown up” business
| Your business is “ok” looks like: | Next Level is: |
|---|---|
| Processes are mostly manual: Manual processes that could be automated, leading to wasted time and resources. | Streamlined Processes: Optimised, automated workflows and well-documented procedures, often using project management software for efficiency. |
| Errors sometimes happen: Frequent mistakes or rework, indicating a lack of quality control. | High Quality Control: Robust quality control measures resulting in consistent product/service quality, with regular audits and continuous improvement initiatives. |
| Service delivery can be lumpy: Variability in product or service quality, which can damage reputation. | Predictable Output: Consistent results with minimal variability, ensuring customer satisfaction and building trust. |
| Over-Reliance on Key Individuals: Critical knowledge or tasks are concentrated in a few individuals, creating bottlenecks. | Knowledge Management: Documentation and distribution of critical knowledge across the team, reducing dependency on specific individuals. |
4. Team at the Next Level of Business
| Your business is “ok” looks like: | Next Level is: |
|---|---|
| High staff turnover: Team members come and go on high rotation. The ones that stay are good (but not great) or great but at risk of going out on their own. | High Engagement: Motivated and engaged employees, with regular engagement measurement and initiatives like team-building and recognition programs. |
| Skills Gaps: Your team doesn’t have all the skills to meet current business needs. You know they could be better with the right structures and training. | Skilled Workforce: Ongoing training and development ensuring that team members have the skills needed to excel and adapt to new challenges. |
| Poor Communication: Lack of clear communication channels, leading to misunderstandings and inefficiencies. | Effective Communication: Established clear communication channels, with regular meetings and an open-door policy encouraging collaboration and idea-sharing. |
| Resistance to Change: Team members are reluctant to adopt new tools, processes, or strategies. | Adaptable Team: Openness to change, with a culture of innovation where employees are encouraged to bring new ideas to the table. |
5. Systems for the Next Level
| Your business is “ok” looks like: | Next Level is: |
|---|---|
| Manual Processes: Over-reliance on manual tasks that could be automated, leading to inefficiency. | Automated Processes: Routine tasks are automated, freeing up time for strategic activities, often using software for invoicing, customer support, and inventory. |
| Lack of Integration: Systems that don’t communicate with each other, causing data silos and inefficiencies. | Integrated Systems: All business systems are integrated, ensuring seamless data flow across departments and improving efficiency. |
| Outdated Technology: Using outdated or unsupported software, leading to security risks and operational delays. | Up-to-Date Technology: Regularly updated technology stack, using the latest software solutions to enhance performance and security. |
| Poor Data Management: Inconsistent data collection and storage, leading to unreliable information and decision-making. | Reliable Data Management: Robust data management practices ensuring accurate and up-to-date information, with business intelligence tools for informed decisions. |
6. Finance for the Next Level of Business
| Your business is “ok” looks like: | Next Level is: |
|---|---|
| Cash Flow Problems: Lumpy cash flow and unpredictable bank balances are usually caused by issues and/or inconsistencies with invoicing and payment collection processes. |
Healthy Cash Flow: Advanced businesses manage their cash flow well by being diligent with payments, collecting early and negotiating longer terms for payables. They use forecasting tools to anticipate future needs and avoid shortfalls. Example: A Cash Flow Forecast Report |
| Financial Reporting is Irregular, Inaccurate or Irrelevant: Not using reports to track your performance is a common issue in “teenage” businesses (you’re not a start up, but you’re not a grown up business yet either). Just as risky is looking at incorrect reports or looking at too many reports. |
Accurate and Timely Financial Reporting: Mature businesses have embedded protocols of regularly reviewing relevant and accurate financial reports to get a clear picture of the business’s financial health. Example: Tenfold Job Profitability Report |
|
High Debt Levels: Debt is often required to fund a period of growth. However if your business relies on debt to cover normal operations, it’s can lead to high-interest costs and financial strain. We’re not just talking about overdrafts or bank loans – if you’re not paying yourself a market salary, that’s a debt your business owes you. |
Appropriate Debt Levels: Mature businesses know how to use debt effectively. Example: Lease finance is used to acquire vehicles and equipment, and the finance terms are aligned with the revenue-generating lifespan of the asset. |
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Poor Budgeting: If you feel like you’re often winging it financially, it might be due to the lack of a clear budget. That level of uncertainty feels like you’re swinging between famine and feast. |
Smart Budgeting: Detailed budget aligned with strategic goals, regularly reviewed with performance adjustments made as needed. |
| Best Guesses: Making financial decisions based on gut instinct or relying heavily on your accountant’s advice can feel like trying to drive from the back seat; you can’t control the direction of a moving vehicle. |
Financial Forecasting with Confidence: Experienced business owners use financial forecasting to guide major decisions, such as expanding into a bigger factory or entering a new market. Scenario modelling allows you run “what ifs” and assess potential risks and rewards. Example: Tenfold’s Financial Model |
7. Strategy for the Next Level
| Your business is “ok” looks like: | Next Level Leadership is: |
|---|---|
| No Long-Term Vision: The business lacks a clear long-term vision or goals, leading to aimless growth or stagnation. | Clear Long-Term Vision: Well-defined vision for the future with specific, measurable goals communicated to the entire team. |
| Reactive Rather Than Proactive: Decisions are made reactively rather than through proactive planning. | Proactive Planning: Regular strategic planning sessions identifying growth opportunities and potential threats, often using tools like SWOT analysis. |
| Poor Competitor Analysis: Little to no analysis of competitors, leading to missed opportunities or threats. | Competitor Intelligence: Close monitoring of competitors and market trends, refining strategy and differentiating from the competition. |
| Lack of Innovation: The business fails to innovate or adapt to market changes, leading to obsolescence. | Continuous Innovation: Culture of innovation with constant improvement in products, services, and processes, often with investment in R&D. |
| No Strategic Initiatives: Lack of strategic initiatives or projects that drive long-term growth. | Strategic Initiatives: Portfolio of initiatives driving long-term growth, such as investing in new markets or enhancing the customer experience. |
8. Leadership to Take Your Business to the Next Level
| Your business is “ok” looks like: | Next Level is: |
|---|---|
| Micromanagement: Leaders who micromanage instead of empowering their teams, leading to low morale and inefficiency. | Empowerment: Leaders delegate effectively, empowering teams to take ownership of their work, leading to higher morale and productivity. |
| Poor Decision-Making: Inconsistent or poor decision-making, often due to lack of data or analysis. | Informed Decision-Making: Data-driven decisions using analytics and insights, with input from teams to ensure a well-rounded perspective. |
| Inability to Delegate: Leaders who fail to delegate effectively, leading to burnout and inefficiencies. | Effective Delegation: Leaders focus on strategic tasks, delegating operational responsibilities to capable team members, allowing concentration on growth. |
| Lack of Vision: Leadership lacks a clear vision, resulting in a lack of direction for the team. | Visionary Leadership: Leaders with a clear vision for the future, inspiring teams to work towards it with regular communication to ensure alignment. |
| Poor Communication: Leaders fail to communicate effectively, leading to confusion and misalignment. | Open Communication: Leaders maintain open lines of communication, providing regular updates and feedback, fostering transparency and alignment. |
