How to "Lean Out" Your Business For Next Level Growth
From: "Help! My Business is Growing" Podcast
We all want our businesses to become successful and sustainable.
But this can be a challenge, especially if you're unsure what aspect of your business to prioritize. The struggle, confusion, and overwhelm are real.
However, there is a solution - using the principles of lean.
If appropriately implemented, it ensures a healthy and sustainable growth rate for your business. It increases value and productivity while looking at ways to decrease waste.
But what does it mean to “lean out” your business exactly? And how does it affect your bottom line?
Today, my guest is Crista Grasso, the creator of both the Lean Out Method and the 90-Day Lean Out Planner.
We break down what “leaning out” your growing business looks like, how it affects hiring your team, and what steps to take to deliver maximum value to your customers.
In this episode, we discuss:
2:30 What is a lean business, and how does it apply to companies, not in the manufacturing space?
8:00 What are the steps that founders can take to get them to lean out their business?
15:40 How does a lean business work when hiring & putting teams together?
19:15 What are the common mistakes that small businesses encounter when in the process of leaning out?
24:15 How do you stay true to the lean method when your business is growing? Is the "lean" going to look different when you hit the $5 or $10 million mark?
Listen to the podcast here:
What is a lean business, and how does it apply to businesses that are not in the manufacturing space?
A lean business is all about increasing value in productivity and decreasing waste.
The lean method identifies what matters in your business, what provides value to your clients and profit to your business, and then eliminates everything else because they are non-value-add.
It can also be applied to all businesses, even small ones, and not just really massive companies, like those in the manufacturing or technology sphere.
What are the steps that founders can take to get them to lean out their business?
Define your vision. Think about:
Your business in the future
Yourself in the future
Your clients/customers in the future
Clarifying your vision will help answer questions you might have regarding your business:
Am I working on the right things?
Am I directionally correct?
Where am I investing my time, money, and energy?
2. Revisit your business model
Does it still match your new/updated vision?
Is it delivering the results that you want for your business & clients?
It helps prevent a Frankenstein/hodgepodge business model and it also gives you the space to evaluate if the business still fulfills you and gives you joy.
"Your data helps you stay focused and reminds you of what's important and why you're doing the things that you're doing." - Crista Grasso
How does a lean business work when hiring & putting teams together?
Lean hiring is NOT hiring just a bare-bones team and making them wear 75 hats.
It's also NOT refusing to hire any more staff until you absolutely have to.
Lean "Dream Team" hiring is:
To make strategic hires that are tied to your vision for your business - specifically the next level you're trying to get your business to achieve
Hiring team members to help build up profit and revenue potential in your business
Hiring people and aligning them to their natural strengths for a more productive, happy, and long-lasting ecosystem for your business
What are the common mistakes that small businesses encounter when in the process of leaning out?
A common reaction for many who have started their lean journey is an attack of the "Yeah, buts.."
"Yeah, but like no one said I was gonna cut this"
"Yeah, but I already said I was going to, and this person is relying on me to do this."
Leaning out your business means embracing change, and "yeah buts" are usually signs of resistance to impending changes to previously committed actions or behaviors.
It is an attack of self-doubt, nervousness, and uncertainty when it is time to implement the significant changes and improvements you need to make and can kill the momentum.
These feelings are natural since change is hard, and it's best to know beforehand that these feelings will crop up as you transition to a lean business.
How do you stay true to the lean method when your business is growing? Is the "lean" going to look different when you hit the $5 or $10 million mark?
There are four core components that you'll always need as you scale and at whatever stage of growth, your business is currently in.
the right strategies
leveraging lean strategic planning
the right systems
the right team
These four pillars stay consistent in your business as you scale but might look slightly different per stage.
It's a state of continuous improvement, one you're never done with, and grows with you. And as your business grows, it just shapes and evolves in different ways.
We go in-depth with this topic and more over at the podcast. Listen here:
To round it all up:
A lean business maximizes value in productivity and minimizes waste.
It is not exclusive to big businesses and smaller companies can benefit from it as well.
When you start leaning out your business:
Define your vision, specifically how you see your business, your clients, and yourself in the future.
Revisit your business model and check if it still delivers the results you want for your business & clients.
Lean hiring is all about making strategic hires based on your vision in preparation for where you want to be in the future. It's also handpicking a team that can help you, the founder, focus on your zone of creativity and that will bring in revenue and profit into your business.
A common reaction in those starting to lean out their business is hesitation and uncertainty, especially when it's time for action to implement organizational, procedural, and other changes.
When using lean, 4 components should be a part of your business - at whatever stage of growth:
right strategies,
lean strategic planning,
the right systems,
and the right team.
Leaning out is a state of continuous improvement, evolving along with your business as it grows.
About Crista Grasso
Crista Grasso is the go-to strategic planning expert for leading global businesses and online entrepreneurs when they want to scale.
She is also the creator of the Lean Out Method" and the "90-Day Lean Out Planner" and helps clients focus on optimizing the core things that will make the biggest impact to scale a business simply and sustainably.
She specializes in helping businesses gain clarity on what will drive maximum value for their clients and maximum profits for their business.
Crista is also the host of the "Lean Out Your Business Podcast."
Website: https://www.leanoutmethod.com/
LinkedIn: https://www.linkedin.com/in/cristagrasso/
by Kathy Svetina
Kathy is a Fractional CFO and the founder and director of NewCastle Finance LLC. She is a financial puzzle solver, focusing on women-owned businesses, providing financial insights needed for a healthy and sustainable business.