I’ve appeared on over 100 podcasts from around the world and had the chance to meet incredible people, from bestselling authors to industry thought leaders. Many of the hosts are business coaches, eager to share their proprietary formulas for “scaling up” companies. Inevitably, they ask me for my recommendations for aspiring entrepreneurs, small business owners, or corporate leaders. I often surprise them because I don’t recommend scaling your way to happiness. I simply don’t believe that’s the answer.
Looking back, some of my business mistakes were trying to grow too quickly and taking my eye (and heart) off the clients I already had. That’s a critical error. While I’d like to say I’ve completely solved that problem, the truth is that it takes daily discipline. Most of us think we need thousands of new customers, but realistically, one or two more can make a meaningful difference. Scaling up also puts immense pressure on your team, who will often tell you that their plates are already full.
The answer is not easy, but it is simple: Differentiate. Stand for who and what you are and be the best version of it. And charge for it. Guess what? You will lose some opportunities doing that, but you’ll likely retain your best customers and maybe gain a couple who actually think you are worth it.
Ryan Rockafellow is CEO of Engineered Transportation International (EnTrans). Among the brands under the company’s umbrella are Heil Trailer and Polar Trailer, the two leading names in the tank trailer segment—those magnificent masterpieces that travel the highways transporting petroleum, fertilizers, chemicals, and foods. The two brands spent decades competing as rivals until Ryan and the team acquired Polar in early 2018. At the time, both companies (combined) held around 40 percent of the tank trailer market. Ryan had significant challenges to face. First, he had to unite an army of former rivals—not just to play fair, but to become stronger together. Second, he had to resist the temptation to increase profits by homogenizing the two brands, robbing each of its distinctiveness in order to make them cheaper to produce.
Instead of following the “scale up” path, he ensured that each brand’s differentiation and magic were honored, even if initially that meant lower profits. Today, the two brands have increased their combined market share to 50 percent and continue to lead the industry.
Here are four ways to build your business in a meaningful way:
- Resist the temptation to dilute your differentiation in the hopes of extraordinary short-term growth. There are more pitfalls than most realize—including losing long-time, loyal customers as well as dedicated employees who believe in their beloved brand. Neither of those is easily recovered. Additionally, your brand reputation will suffer as your products or services no longer stand out in the marketplace, and their value drops.
- If you’re looking to scale up, take a good, hard look at your company and determine if you’re fully prepared. Growing and increasing market share sounds good, but if you don’t have the resources to back it up, you could face significant challenges. Determine if you’re really ready to handle a large influx of business while still maintaining the high level of quality your current customers expect.
- Keep the customer experience at the forefront. When growth outpaces your resources, the customer experience is often the first thing to suffer. If customers feel neglected, they’re more likely to jump ship to another brand. The experience you provide is your brand in the eyes of your customers—protect it at all costs.
- Protect your company culture. Growth should never come at the expense of the values and environment you’ve carefully created. When merging brands and teams, like Ryan did at EnTrans, maintaining a cohesive, positive culture can be especially challenging. Success requires ongoing reinforcement of core values and consistent internal communication to keep everyone aligned and engaged.
The allure of scaling up is great, but the cost of expanding too quickly or without careful planning can be much higher. While some promise secret formulas for taking businesses to the next level, the real key is staying true to everything that makes your brand unique and protecting the value you provide your current customers.
