Managing Growing Pains: A Problem Every Business Wishes It Had

You’ve worked hard and uncovered the rubies in your orchard. Business is booming. How great! But now all your free time is being siphoned away by clients, and you’re not sure how to help your business take the next step in growing up. In this week’s Ask Lynda, a prospering entrepreneur gets some next-step tips on graduating her fledgling company by working smarter.

Dear Lynda,

I’m the owner of dkkevents, a green event-planning service in Los Angeles. I plan events ranging from intimate bar mitzvahs to community-wide activist events such as Global Soul, an annual fundraiser that celebrates the anti-genocide efforts of Jewish World Watch. Dkkevents does everything from finding local organic caterers to getting leftovers to local food banks. As I say on my website, dkkevents is “Progressive green event planning that blends style and taste with environmental responsibility. Because the best celebrations leave the smallest footprints.”

I’ve been in business for more than three years and like to think I was ahead of the trend in green event planning. Because of my company’s longevity, my business doubled last year. I’m happy about the increase, and I’m glad to see the current focus on caring for our planet. However, as a small-business owner, I’m curious as to how to keep up with the increased business. In one of your recent Ruby Tuesday columns, you interviewed an executive who had a mere 15 employees at his international company. How can a business get to be so lean? With my business already growing rapidly, how can I work smarter, so that I can both keep up with the demand and grow efficiently (without working 100-hour weeks)?

Sincerely,
Deborah Kattler Kupetz
Founder and Principal,
dkkevents.com

Dear Deborah,

Everyone should have your problems (as my grandmother would say).  I am happy to hear that your business is going so well.  I have a few suggestions. I hope they help:

1. Don’t add to your overhead, but bring on freelance help for the times when business is heavy. Create a stable of people you can call on who are good at what they do and understand the unique aspects of your business.
2. Make sure you are charging enough.  If you have a healthy mark-up, then you can afford to hire the right staff to help you.
3. Say no once in a while. If the job isn’t right or the price isn’t enough, don’t take it.

You might want to hire a strong business person or accountant to advise you. Growing is great; working for less than you deserve… isn’t so great.  I suspect that you are putting in 100-hour weeks because your pricing is fair and people still need to have parties.  I would raise your rates a bit and see if the work doesn’t become more profitable and allow you more of a life.

In general, the online rental business lives on the web; they have no inventory and do everything online.  Wikipedia has only 12 employees. Online businesses can operate that way.  You, however, run a very people-intensive business. You need human capital to get the job done.  Why not carve out some time to go and take a few business classes at a local college?  It may eat into your work time but pay off in real dividends later on.

Keep up the good work and keep it green.

All the best,
Lynda