I n 1989, George Carson began making cabinets for friends in his basement. H is costs were low. So were his prices. There was no overhead. W ord spread. Business flooded in. G eorge dropped his day job to make Riverside Manufacturing a real business. H e hired a helper and moved to rented space. G eorge had a micro business! Riverside Manufacturing

T he employees: Produced & installed the cabinets Made sales calls Resolved customer issues Shipped product Handled administrative tasks Overhead remained low – there were no managers. “ W e have good people. We just get it done.” -George Carson B efore George knew it, Riverside Manufacturing grew to 40 employees!

G eorge was a “hands on” owner. He: Made every important decision. Managed all employees. Knew the intricate details of the business. Didn’t need metrics, reports or documented processes. B ut, with all the work, George was stretched thin.

V acations were scarce and time off was at a premium. G eorge worked 75 hours per week and didn’t see much of his family. W orse, business began to stagnate: G eorge was at a loss. What happened to his growing business? Sales growth stopped Profits evaporated The shop and inventory became unorganized Work was always behind The lack of processes led to constant fire drills There were never enough hours in the day or days in the week!

R iverside was growing. P rofits were good. T hen… T hings began to go wrong. G eorge wouldn’t let go. H e was drowning. H e couldn’t keep up with the work. T he business was suffering. W ithout knowing it, George was the constraint to growth! What Happened?

What we learned … Micro Business Do the primary work Make tactical decisions Develop strategy

What we learned … Small Business Do the primary work Make tactical decisions Develop strategyGet the right workers in the right jobs Manage the workers

What we learned … Midsize Business Make tactical decisions Develop strategy Get the right workers in the right jobs Manage the workers Get the right managers Documented process Robust metrics