{"id":5914,"date":"2013-12-30T15:00:00","date_gmt":"2013-12-30T20:00:00","guid":{"rendered":"https:\/\/www.wework.com\/creator\/?p=4026"},"modified":"2020-03-30T19:09:33","modified_gmt":"2020-03-30T23:09:33","slug":"keep-business-lean-profitable","status":"publish","type":"post","link":"https:\/\/www.wework.com\/ideas\/professional-development\/keep-business-lean-profitable","title":{"rendered":"How to keep your business lean and profitable"},"content":{"rendered":"

In many ways, \u201cstay lean\u201d has become the new American motto. People everywhere are trying to stay lean through diet, exercise or banishing meaningless possessions. There\u2019s a reason the \u201cstay lean movement\u201d is so popular. It\u2019s healthier and more efficient, and it provides the space for meaningful growth. Why should businesses be any different?<\/p>\n

They\u2019re not.<\/p>\n

Staying lean in business means having everything you need and nothing you don\u2019t. It requires examination and retooling to find and wipe out inefficiencies. Lean is a never-ending process, not something to achieve once and expect to continue. Lean might seem like the opposite of growth and expansion, but the reality is that the two can work quite well together.<\/p>\n

Warning: Don\u2019t Forget What Got You Here<\/h3>\n

I believe in having a narrow focus with your business, especially when starting out. It\u2019s important for a business to find solid footing before moving on to new things. However, once a company is established and its core offerings are profitable, it makes sense to stretch a little. Diversifying business offerings \u2014 in the same way an investor diversifies her portfolio \u2014 helps increase reach and revenue potential, while decreasing the risk of a single revenue stream. Unfortunately, expansion comes with its own set of risks.<\/p>\n

Diversifying your offerings across multiple services means that a bad month or two in one area won\u2019t sink your business. But don\u2019t neglect your cash cow! Paying too much attention to new areas at the expense of the core services that made you successful can be a fatal mistake.<\/p>\n

The Danger Zone: You\u2019re Getting Bloated<\/h3>\n

When expanding beyond core services, growth can easily become bloat. It can take the form of unnecessary meetings and slower processes, as multiple layers of management try to report up and send requests down inefficient \u2014 and perhaps unnecessary \u2014 command chains. We see a similar pattern in software development in the form of unneeded complexity and technical debt.<\/p>\n

Google\u2019s defunct Wave product is a prime example of bloat sinking the ship. They built a groundbreaking product but because it was so heavy with features, making changes became a slow and agonizing process. As a result, it was plagued with speed issues and bugs. Even a software giant like Google was unable to recover. Had Wave launched as a smaller, leaner offering, I believe the results would have been very different.<\/p>\n

How to Get Lean<\/h3>\n

You can get lean while expanding beyond your core service. However, it requires an open mind, an attitude of experimentation, and a goal to maintain efficiency. If you find that your company feels like it\u2019s bogged down, here are a few ways to get lean:<\/p>\n