為什麼很多公司無法擴大規模?
Summary
TLDRThe transcript emphasizes the importance of structure in scaling a business, identifying core functions such as operations, finance, sales and marketing, and R&D. It suggests focusing on sales and marketing first to generate revenue, followed by hiring key executives like CFO and COO. The speaker advises against raising capital too early, advocating for customer-funded growth to maintain control and equity. The key to scaling is filling roles with the right people, making data-driven decisions, and strategically growing the business.
Takeaways
- 🏢 Build a scalable business by establishing a strong organizational structure with core functions like Operations, Finance, Sales and Marketing, and possibly Research and Development.
- 🛠️ Start with focusing on Operations, which includes production and supply chain management, typically overseen by a COO in larger organizations.
- 💰 Finance is crucial and involves legal, accounting, and HR aspects, with a CFO managing these areas in a growing business.
- 📈 Prioritize sales and marketing for revenue generation, especially when the business is below a million in revenue.
- 🔑 Hire good marketing and salespeople to bring in revenue before expanding into other areas.
- 💼 Consider adding a general manager or executive for operations or finance as the business grows, starting with finance to manage cash flow effectively.
- 📊 Develop the ability to read financials to make data-driven decisions rather than being guided by emotions alone.
- 🔑 As CEO or entrepreneur, focus on higher-level strategies, such as attracting investors and key personnel to help scale the business.
- 🚀 Grow the business incrementally by filling each role with the right person, ensuring a healthy and growing organization.
- 💹 Avoid raising money too quickly and consider bootstrapping the business using sales and marketing to fund growth, thus retaining more equity.
- 🤝 Delay taking outside capital as long as possible to maintain control and freedom in business operations and decision-making.
Q & A
What is the first function that most businesses should focus on according to the transcript?
-The first function that most businesses should focus on is Operations, which includes production, supply chain, and day-to-day management of the business.
Who typically manages the operations in a growing business?
-In a growing business, the Chief Operating Officer (COO) from the executive team typically manages the operations.
What is included under the Finance function in a business?
-Under the Finance function, businesses include legal, accounting, and human resources (HR).
Who is usually in charge of the Finance function in a larger business?
-In a larger business, the Chief Financial Officer (CFO) from the executive team is usually in charge of the Finance function.
What is the role of Sales and Marketing in a business?
-Sales and Marketing is responsible for revenue generation, and may include roles such as VP of Marketing and VP of Sales.
Can customer support be part of Sales and Marketing or Operations? Why might it vary?
-Customer support can fall under either Sales and Marketing or Operations, depending on the business's structure and the significance of sales and marketing in their operations.
What additional function might a pharmaceutical business have?
-A pharmaceutical business might also have a Research and Development (R&D) function to develop new ideas and conduct market research.
What is the recommended focus for a business when its revenue is below a million dollars?
-When a business's revenue is below a million dollars, it should focus on sales and marketing to generate revenue first.
Why should a business prioritize hiring for the Finance function early on?
-A business should prioritize hiring for the Finance function early on to ensure proper cash flow management and to have someone advising on financial decisions.
What skill is essential for a CEO or entrepreneur to develop according to the transcript?
-The ability to read financials is essential for a CEO or entrepreneur to make data-driven decisions rather than being guided by emotions.
What is the recommended approach to raising capital for business growth?
-The recommended approach is to bootstrap and use sales and marketing to fund growth, delaying outside capital raising as much as possible to maintain control and equity.
Why is it important to fill each role with the right person in the right seat?
-Filling each role with the right person ensures that the business operates efficiently and effectively, contributing to the overall health and growth of the organization.
Outlines
📈 Building a Scalable Business Structure
The speaker emphasizes the importance of a structured organization for business scalability. They mention that most small businesses lack this structure initially. Key functions identified include Operations, Finance, Sales and Marketing, and potentially Research and Development. The speaker suggests that a Chief Operating Officer (COO) would manage Operations, a Chief Financial Officer (CFO) would oversee Finance, and a VP of Marketing and Sales would handle revenue generation. Customer support can fall under either Operations or Sales and Marketing. The speaker advises focusing on sales and marketing first to generate revenue, followed by hiring a general manager or executive for Operations or Finance. They stress the importance of financial management and understanding financials to make data-driven decisions. The speaker also discusses the potential complications of raising money too early and prefers a customer-funded business model to maintain control and equity.
Mindmap
Keywords
💡Business Scaling
💡Organizational Structure
💡Operations
💡Finance
💡Sales and Marketing
💡Chief Operating Officer (COO)
💡Chief Financial Officer (CFO)
💡Revenue Generation
💡Bootstrapping
💡Customer-Funded Business
💡Equity Dilution
💡Strategic Hiring
Highlights
Building a scalable business requires a structured organization with core functions such as Operations, Finance, Sales and Marketing, and potentially Research and Development.
The Chief Operating Officer (COO) manages day-to-day operations, including production and supply chain.
The Chief Financial Officer (CFO) oversees Finance, Legal, Accounting, and Human Resources (HR).
Sales and Marketing are crucial for revenue generation, and may include roles like VP of Marketing and VP of Sales.
Customer support can fall under either Sales and Marketing or Operations, depending on the business focus.
In the pharmaceutical industry, Research and Development (R&D) is an additional key function for innovation and market research.
When starting, it's challenging to fill all roles simultaneously due to revenue constraints.
Recommendation to focus on sales and marketing first to generate revenue before expanding the team.
Hiring good marketing and salespeople is essential to bring in revenue before considering other roles.
Once revenue is generated, consider adding a General Manager or Executive for Operations or Finance.
Finance should be prioritized first to manage cash flow effectively.
Developing the ability to read financials is crucial for making data-driven decisions.
As CEO or entrepreneur, focus on higher-level strategies such as attracting investors and key personnel.
Growth from a small business to a multimillion-dollar enterprise involves gradually filling roles with the right people.
Avoid raising money too quickly to maintain control and equity in the business.
Bootstrapping and using sales to fund growth can delay the need for outside capital.
Raising money from venture capital can complicate business operations and potentially limit freedom.
Filling each role with the right person in the right seat is key to building a healthy, growing organization.
Transcripts
dear Dan how do you build a business
that scales I believe most businesses
they stay small because they don't have
the structure of an
organization and in the beginning I
didn't know that I needed a structure
either but business what it boils down
to you actually have maybe a core three
or four functions so the first function
that most businesses have is Operation
so under operation you will have your
Productions you would have your supply
chain operations and chances are when
you grow a little bit bigger your coo
your Chief Operating Officer from your
exective team will be managing those
right the operation the day-to-day of
the business then you have what I call
your Finance right under Finance you
will have your legal your accounting
your HR right human resource so chances
are when you get bigger you will have
your CFO your Chief Financial Officer
that's in charge of that from your
executive team and then later on you
have your sales and marketing right
sales and marketing this is in charge of
Revenue generation you might have your
VP of marketing your VP of sales right
customer support sometimes falls under
sales and marketing sometimes it falls
under operation it's up to you m falls
under operation because sales marketing
for us is such a big part of what we do
if you are in it if you're in
pharmaceutical then you might also have
another function what I call research
and de development right your R andd
that's where you develop new ideas do
your research and find out what the
marketplace wants your research and
development in the beginning when you
are growing your little business it's
very difficult to fill all these roles
at the same time simply because maybe
your Revenue cannot sustain to hire all
these people overnight but you could add
them one at a time now here's my
recommendation some people may disagree
with it but this is what works for me in
the beginning I believe when you are
below a million you should focus on
sales and marketing nothing happens
until a sale is made in business you
need to focus on Revenue generating
activities hire good marketing people
high good sales people bring in the
revenue first then you want to take that
money now you want to think about maybe
you want to add that general manager or
that leader or the executive or that VP
for operation or either for the finance
I say Finance first if you were to ask
me because you need someone to be
looking over the money right you need
someone to be able to advise you how you
to manage that cash flow now you need to
develop your ability if you don't have
the ability yet to read financials
because you need to know the pulse of
your business how do you make decisions
you want to make decision based on data
and numbers and not just emotions then
as the CEO as the entrepreneur you're
focusing on higher level strategies or
how to attract investors or how to
attract key people to help to run your
business and that's how you go from a
Smalls business that's doing a few
hundred th000 to a million dollar a year
to 2 million to 5 to 10 million to 20 to
30 million that's how you grow now I
don't believe that you should raise
money too quickly I always subscribe to
the idea of customer funded business
because when you raise money too early
as a business you are diluting your
Equity right you're giving away a lot of
equity if you could bootstrap and not
having to take outside Capital but
actually using sales and marketing to
fund your growth you can delay raising
money to as further away as possible
then you are in control of the business
whenever you raise money if you take
money from a venture capital firm or an
equity partner gets a little bit more
complicated that you may not be able to
create the way that you want or the
freedom that you want so that would be
my recommendation and that's how you
grow your business and bit by bit and
you fill each role the right person in
the right seat and before you know it
you've got a a pretty healthy growing
organization
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