Specific,

Measurable,

Attainable,

Reasonable, and based on

Time

Hustling and grinding receive too much credit. Hard work is necessary, but many entrepreneurs need to go back to basics. There is no point in doing something overcomplicated if you have not already mastered the five pillars of business through SMART goals.

Strong foundational work will outpace complexity in results any day. There's a great quote that says complexity is the enemy of execution. Instead of setting goals that are too lofty or too complicated, focus on creating fundamental growth for long-lasting results.

An escalator is automatic. The only effort required is to get on and get off. An escalator moves at a steady pace until the rider has reached the top. Growth is much different because it is not always consistent and does not follow a schedule.

Ascending a flight of stairs takes manual effort at each step. A person cannot jump from the first step to the sixth step. The person may take breaks and may move much faster at certain points of the trip.

Each time the feet touch a new step on a staircase, a new baseline has been set. Hiring new employees and raising prices are nice indicators of growth. Yet, an entrepreneur should not expect increases in these areas to happen in quick succession.

A coffee shop would not raise the prices of a regular coffee from $5 to $6 to $7 in a matter of weeks. Each new price hike creates a new baseline. Taking another step up is a cause for celebration, but it also creates a new normal. Reaching the next step will require a new process to move to the next level.

Growth is neither linear nor exponential. While growth will have a natural ebb and flow, it is not a roller coaster either. Each point of progress creates a new plateau from which to rise. The forward motion that creates the momentum for change comes from constant daily effort, but the great results will not happen every day, every month, or even every year. Growth is progress and change, and some changes take time to execute.

Sudden growth is not always sustainable because it is often caused by factors the business cannot control. SYE prefers to invest in businesses that have well-established systems that will promote future growth.

Due to the nature of statistics, growth metrics tend to be more dramatic for businesses that have been in operations for shorter periods of time. Businesses with a long history of growth tend to garner higher valuations. The numbers are more meaningful because there is more history behind them. These statistics are a stronger predictor for the future than statistics on a business with a shorter history.

Business owners considering their exit plan should always keep growth in mind. An investor is unlikely to ask why the business had a bad month ten years ago. However, investors may ask why every January for the past ten years has been the lowest month in sales. Investors are more concerned about growth trends than the blips on the radar.

Business owners should be well acquainted with the reasons for fluctuations in the performance of their business. Clear financial statements help to explain these reasons to investors. Be sure to have data to support your decisions now and be able to tell the story of your business in the future. Be able to explain long slumps or cyclical dips in the business.

Growth is a necessary part of business. The most significant growth often comes from the smallest, least glamorous actions. Consistent growth requires planning and consistent execution of a plan over the long term.

To grow, entrepreneurs should not complicate their to-do list with one hundred new tasks. Rather, focus on one task at a time, relating everything back to the foundation of the five pillars of business. Growth is a slow and steady process with long-term benefits.