Frustrations were building between a US-based supplier and their Brazilian distributor. A relationship once built on trust became characterized by suspicion, and the idea of breaking contracts seemed advantageous, despite considerable financial and relational investment.
How did these two dysfunctionally dependent companies become mutually beneficial?
After years of working in and with SMEs, I’ve seen three steps regularly jumpstart business health and growth. Whether your organization is experiencing success or crises, these three steps will move you forward.
1. Recognize that you need help
By nature, entrepreneurs and business owners are independent, resilient, bold, and confident. In other words, we are risk-takers, know-it-alls and loners. And while those personality traits are crucial to business success, it is also imperative that we recognize our own limitations. Every business owner has gaps in knowledge, experience or creativity, and filling in those gaps with outside help can supercharge organizational growth. Figure out where your gaps exist.
2. Find help
Unlike large corporations, SMEs aren’t resourced to hire titan consulting groups or accounting firms. On the flip side, the substantial resources that exist for start-ups don’t address our burgeoning business needs. This is where your network is an invaluable tool – reach out to trusted advisors and ask for recommendations. (More on locating help in a future post).
3. Invest in help
You can learn the hard way or you can get to the answers faster by hiring help. Either way, business growth comes at an expense. Making a financial commitment can solve ongoing problems, increase efficiency, help identify blind spots, re-center business vision and increase profitability. That is a worthy investment.
While conducting a 360-degree review of the aforementioned company in Brazil, I watched firsthand as the owner became aware of his business blindspots. He wasn’t getting accurate information from his employees, and needed to make some changes in communication. Where he could’ve remained stubborn and obstinate, he humbly examined his own leadership and the problems in his company. Because he wasn’t getting the answers he needed internally or from the market, he recognized his need for outside perspective and experience. We helped to create a roadmap for organizational change, and he committed to intentionally implementing those strategies. His commitment to growth not only created health in his own organization, but changed the dynamic with the US-based supplier. With clarified contracts, established metrics and goals, and rebuilt trust, a new joint-venture agreement was signed within 6 months that lead to increased revenue for both organizations.
