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is a small amount of overlap between teams and everyone works toward the same goals , the teams each play their own role . It ’ s a rare person who can play on offense and defense , especially when you get to the highest levels of competition . That ’ s where Phelps lives , so he never pretends he can do it all or that he has all the answers .
“ You have to give somebody the authority and responsibility to do their job ,” he adds . “ You have to let them make mistakes . You have to support them and develop them .” Once you actually start building a team , not just engaging in team-building exercises , you have the potential to unlock growth and sales numbers you never thought possible .
The Vision to Scale
Putting the right team in place was fundamental for NWN ’ s success , but so was creating a vision for the future . “ I had no background in this industry ,” Phelps recalls . “ It took me a little while to figure out where we wanted to go .” Once he hit upon the plan , though , Phelps did not waiver in his commitment .
“ We had the vision , focus , and energy to know we were going to go big ,” he says . “ We never made any short-term compromise decisions because you ’ re going to grow past those . I grew up on a farm and learned to ‘ do it right the first time .’ That ’ s a big deal .”
His point about compromise decisions warrants some further unpacking because it ’ s a mistake too many entrepreneurs make . All too often , they choose the decision that ’ s good for right now but will quickly be outmoded when the growth targets are hit .
Phelps points to his company ’ s ERP system as a good example of how this plays out in practice . Rather than choos- ing a system that met the needs of where his company was at the time , he opted for one that would meet their needs well into the future . That meant more cost and frustration on the front end , but it also meant that the system never needed to be replaced , which would ’ ve been a herculean undertaking .
According to Phelps , another essential component of creating a business capable of scaling is career development . “ We want people to have a career , not a job ,” he says . “ You have three teams . You have to focus on the growth and development of each of those . I ’ ve always thought growing a business is a lot like the way an inchworm moves . The front of the inchworm is sales and marketing . The front of the inchworm can have all the energy in the world , but he can ’ t go any farther until the back end can catch up .”
Strategies for Growth
Rather than chasing the newest fad or developing a massive suite of services , Phelps thinks growth strategies are best when they come from a logical starting point : the customers . “ In the early days ,” he recalls , “ it ’ s really about deciding who you choose to be your customers . From there , you have to listen to them . I ’ m simple-minded . We focus on the customer .”
From listening to customers , NWN Corporation was able to add services that met the needs of his base , increasing the amount each customer spent . “ 80 % of our growth comes from existing customers ,” he reveals . “ We ’ re growing together . Our big gamble , one that has paid off , was investing in the cloud . We implemented it , but the idea came from the needs of our customers .”
A dedicated customer base and referral network is essential for growth , but Phelps and his team also recognized that not every customer was a fit for them . He humorously refers to the customers that he doesn ’ t want to work with as being on a DNR ( do not resuscitate ) list . We all have these types of customers — the ones who take up more time and resources than they return in value — right ? Why break your back to appease this small minority when your time is better spent
8 | MSP SUCCESS • VOLUME 1