How to step up from one man doing all to a team to see the growth in my business?

In my work with startups as I am a shareholder, Non-Executive Director, mentor, consultant, investor, or a combination of terms in few very promising projects I see this question time and time again from founders who are starting from their bedroom or kitchen table.

Adrian Niculescu speaking at Business Days in Cluj, Romania
Royalty-free picture from Mushbloom Publishing

I was able to find a very relevant answer which was supposed to be for a residential exterior builder business but explains in a blunt way the importance of having the right team beside you.

So let’s look at the mathematical approach for the problem:

Let’s start with the fact that it takes you 1 day to sell one roofing job that takes you 13 days of labor to complete where you make a $5,000 profit.

At most, you can complete 26 jobs in a year making you $130,000. If however, you only sold the job and hired out the labor, you will now only make $1,000 per job. Your income for 26 jobs (or 26 days of work) is reduced to $26,000. However, you gained an additional 338 days (13 days of free time * 26 jobs) to sign more jobs.

That potential is an additional $338,000 (338 days to sign more jobs * $1,000 profit each). Combined, the 26 original jobs plus the added 338 jobs = $364,000 income for the year.

To complete 364 jobs where each takes 13 days for one man to complete, you will need to hire 13 roofers. Your skill resides NOT in doing the job (roofing), but in making sales.

In the example above, you can either make $5,000 in 14 days (averages $357 per day) or make $1,000 per day selling/collecting/managing crews.

You must think of your company, NOT as a roofing company, but instead as a ‘marketing company’ as it relates to roofing. Your concentration moves from a single installation to that of assuring you can acquire an x number of leads to sell that many jobs. If your closing ratio is 3:1 (look at 3 jobs, sign 1), then you need 1,092 roofing leads to looking at in a year (364 jobs needed * 3:1 closing ratio). Your focus must be different to acquire your desired growth.

I would say that the same thing applies to code when as a person you are limited by the hours of the day and the amount of work that can be completed in one day. I hope that this short article will give you an insight into what to do to shift your mindset towards marketing and sales. All success!

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Digital Transformation Expert | Speaker | Fintech Investor | Online and Real Estate Entrepreneur | Music Producer

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