Have you ever felt like your business was hitting a ceiling? How am I going to get to the other side of this? Many business leaders and entrepreneurs want to increase predictability, get additional clarity in their business, and decrease chaos. Today, we are joined by Pallavi Golla, an expert with a proven track record of helping businesses increase efficiencies through proven systems that allow for sustainable and profitable growth. We'll talk about her experience as an entrepreneur, how an Entrepreneurial Operating System can help your company stay focused, and what you should consider if you want to grow and scale your business.
How did you get started as an entrepreneur?
I was born in Pittsburgh to a family of immigrant parents, and everyone was a doctor. I assumed I would be a doctor, too. Then, I went to a summer program for economics and international business. I found something I was good at, and that excited me. So, I went to school to study finance instead. After school, I tried working for a hedge fund but realized I wanted to try my chops at running a business. Since then, I have owned a direct-to-consumer wine company and a children's clothing line, and now I help people as an EOS implementer.
Can you talk about some of those challenges you faced?
One of the challenges for me was sticking to the focus of the business. Whenever you're an entrepreneur and start a business, you have something in mind, and then suddenly, you can get really distracted by many different things that come your way. Sometimes, they are good ideas, and sometimes, they promise additional revenue or look like a way to help your existing customer base. The key is to stay focused on your niche and your goals so that you know what to say no to. If you're a visionary, find someone on your team who can be a filter for your ideas. Let them help you sift through all your ideas to determine what you should do or not do. Be in conversation with your customers. Don't talk to them or ask them for advice. Just talk to them about their likes, dislikes, and problems. The more you understand your customer, the more you will be able to connect with them, speak their language, and meet their needs.
What was the process of selling your business, and what advice do you have for a business leader preparing to exit the business?
Your potential buyers want to buy a business they know they can successfully run. So, if you have made yourself invaluable to your company as you scale it, you will be worse off when you exit. So many owners dig themselves a hole because they hold all the knowledge, make all the decisions, and do not involve others in the process. People buy a company because they have a strong understanding of your business and believe that whenever you hand the keys to them, they can run it just as well. You can sell a business whenever you create systems, processes, and structures that allow someone else to come in and run it in the same way, if not better, you ran it.
What are some of the biggest lessons you would share with the listener?
Clarity and communication are really important. Some people think it's kind to dance around issues. However, the kindest thing you can do as a leader is to be clear about your expectations. That clarity will get you further. People always say this: slow to hire, fast to fire. It's so much harder to do when you're the boss, and you like the people on your team. There is nothing worse than an employee that is not pulling their weight. They could be a great person, but small to medium-sized businesses do not have the cost structure to support bad performance.
What is EOS?
EOS stands for Entrepreneurial Operating System. EOS is a framework of tools and processes companies can use to work on six key business components. If your six key components are strong, that will solve many of your problems. I help my clients strengthen their vision using a vision traction organizer that distills where your company is, where you want it to go, and how you will get there. EOS puts these key components and tools into a system that is easy for small- to medium-sized businesses to follow.
What is the biggest area people need to work on?
There has never been a leader or an owner who has not had people issues. Your job is to build an organization where people want to work. As a leader or leadership team, it's incumbent on you to create an environment where the right people thrive, are rewarded and compensated well, and are given tasks that take advantage of their unique abilities. EOS shows you a framework for how to find the right people and get them in the right seats. We help companies create their core values and their culture first. Then, we bring in people who encompass those values. We create an accountability chart that details the right structure for your business. Finally, what are the five unique things each person is responsible for?
What are the common challenges when leaders try to scale their business, and how does EOS help?
Every entrepreneur thinks there is a straight line from where they start to becoming a million-dollar business. One of the first lessons we teach our clients is the normal, natural progression of growing a business and how a certain amount of personal development and growth will help you grow, but then you hit the ceiling. And then, you must break through that ceiling using specific skill sets, which we discuss in the EOS system.
Application Activities:
How focused is your team right now? Look closely at your current projects, products, and services, and consider how much time is spent in each area. Are you spending time on activities aligned with your purpose, or have you allowed the scope of your business to change over time? Set aside time to think about where you should focus and discuss your ideas with your team.
How focused are each of your employees right now? Does each employee have a task or an area of the business they can take ownership of? Or are the roles gray? Talk to your employees about their work and ask them how you can help them be more focused and eliminate any confusion about roles on the team.
Resources Referenced:
Traction by Gino Wickman
Connect with Pallavi Golla:
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