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The Invisible Wall
By Monte Pendleton, Silver Fox Advisor


Every entrepreneur, sooner or later, runs into the Invisible Wall: a reluctant series of difficulties that form a barrier to his, or her, company’s continued growth and success.  This need not to be debilitating, or fatal collision, but often times is. 

This article will look at (1) what causes the wall? (2) How to identify it; and (3) what can be done about it.

First, the Invisible Wall is created as your business grows and succeeds.  As your business grows, it must advance from Stage I to Stage II, or from Stage II to Stage III.  This article will only deal with the transition from Stage I to Stage II.  There is no particular time schedule for this, but the ending of Stage I usually becomes apparent when the requisite managerial skills start to change.  The very personality, strengths and capabilities that enabled you to succeed as a Stage I entrepreneur, or start-up Owner/Operator, will now actually become detrimental to you as you approach Stage II.

Secondly, it is important for every Owner/Operator to be able to recognize when he, or she, is nearing the Invisible Wall; that point where their results will become limited by their management style.  Let me use an example:  A dog on a leash.  We’ve all seen a tethered dog jerking and jumping vigorously, yet getting nowhere.  If you think about it, you may be able to see a similarity in your own business.  You may be working harder that ever, yet you just can’t seem to progress further.  Sales are becoming erratic, profits uncertain and problems are mounting.  Every time some part of the business advances, some other part retreats.  We will look at some more of the telltale signs of the Wall in a moment.

Thirdly, what can be done to keep the Wall from being debilitating?  The fact is, if you recognize that the Wall is really there, you then will have the opportunity to begin learning to manage in a way that will either carry you through the Wall, or permit you to back away from the Wall and regroup your resources.

At this point you have several choices 1) You may choose to quit expanding and stay the size you are, 2) You may choose to modify your management style and continue to Stage II, 3) You may choose to replace yourself with a professional manager and take a different posture within your company, one for which you are especially qualified, 4) You may choose to sell your current business and start another new business.  Let’s consider which of these four choices you might want to pursue.

First, you can choose to slow down, to quit pushing for continued growth.  This is neither bad, nor wrong.  Many small businesses choose to stay at their current size, since it best fits their management style.  Unless there is a real drive to grow and expand, this may be your wisest choice.

Secondly, you can choose to make the personal changes necessary to become a Stage II manager.  If this looks like your choice, it will be advisable to seek out professional assistance, such as a Mentor, who can guide and coach you through each step of change.  A Silver Fox Advisor or professional mentor can assist you in achieving positive results right from the very first hour spent with you.  Whoever you choose as a mentor, please be sure that you have chosen a former business owner who has been in your shoes and understands the emotional side of entrepreneurship from a personal perspective. There will still be a big job ahead, but success will bring giant rewards and tremendous satisfaction.

Thirdly, you can hire or promote a Stage II manager.  This will allow you to stay around and break in your successor.  However, it is difficult, after many years at the helm to turn the wheel over to another person, and then stay out of the new manager’s way.  I feel that an Entrepreneur, or Stage I manager, who guides his/her company through the start-up snares, and then chooses to pass on the leadership baton, is a true success —  A far greater success than one who hits the Invisible Wall, and struggles there for years without progress.

In keeping with this solution, you can choose to fill the job of your choice.  Most often Owner/Operators move up to Chairman.  However, this may be just another job for which you are not fully qualified.  You might experience far greater satisfaction from filling another position in which you have excelled earlier.  Good examples would be selling, product development, or public relations.

Your fourth possibility would be to sell your company.  In that event, you could probably stay on as an employee, or consultant, retire, or start over with a new start-up company of your own.  If you choose the latter, you will find the going easier the second time around because you are now a Stage I expert.  Lessons learned from the first business will boost you way up the ladder of success with the new company.

The most important thing for every entrepreneur to remember is that there are three stages to every business.  Each has an invisible wall between them.  You will want to learn to identify the Wall so that you can avoid crashing into it unaware.  You are a real success right now having survived Stage I.  You can prepare to quit a winner, or you can continue on with this new map of the shoals that lie ahead.

Let’s now examine the differences in management styles needed in Stages I and II as well as the identifying marks of the approaching Wall, which divides these two stages.  Using a highlighter, mark each item, positive or negative, that tends to describe how you and your company are presently operating.

Now look back at the chart and notice where most of your highlighting has occurred.  If it is the third column, you have successfully moved through the Invisible Wall into the important growth stage of your business.  You can count on expanding sales and profits for many years to come.

If however, your highlighting is in the first column you are approaching the Wall.  If it is both the first and the second column, you are in collision with the Wall.

Now, having discovered where you are in relation to the Wall you will want to consider one of the four choices mentioned earlier.  If you elect the second choice, you will be putting your company back on the road to success.  One choice is not necessarily better than another.  Choose the one that works best for you.

However, if you highlighted mostly in columns one and two, and if you choose to do nothing, to take none of the four choices, this will ultimately assure the failure of your business.  Owner/Operators who deny that the problem is at the top, who fail to recognize that the problem is one of management style, are headed for trouble.  The usual response is to throw more money at the problem, change everything and everybody, but not change your management style.  Either the business will fail or creditors will force changes.  Neither will be a pleasant experience.

Your actions today will determine whether the wall remains a roadblock, or whether it becomes a stepping stone to success.  The choice, if made early enough, can be a very rewarding and positive experience.

Now, let’s look at the chart below to see what happens in each area of the business when the Invisible Wall is in front of you and what you can look forward to when you grow and move away from it. Get your highlighter ready…