EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
How EY can help
-
EY-Parthenon teams help CEOs create long-term value from strategy to execution.
Read more
2. As you grow, stay focused on strategy.
It’s easy to get distracted as you bring on new people and add product lines, says Jenny Jing Zhu, CEO of Lush Décor Home. As she added collections, her primary question was, “How much profitability can this product give me?”
She advises businesses to look at each business unit, keeping two numbers in mind — the top line and the bottom line. “We not only make designer products; we make designer margins,” Zhu says.
Zhu moved to the US from a rural home in China in her 20s and worked as a nanny and a maid, developing an eye for décor. As she built a $100 million business through e-commerce, her motto was, “Adapt fast. Fail fast. Learn fast.”
As the company expanded, her search for specialized talent grew. She knew she was entering a new stage in scaling her business when she hired her first CFO (a retired CFO on a part-time basis), who helped her realize even though she had high margins, she had money tied up in inventory.
“I strongly recommend working with a CFO, even a fractional CFO,” Zhu says. “It’s going to open your eyes to where you need to push, especially in the early stages. The numbers don’t lie.
3. Double down on success.
In the beginning, Responsive did not hire a salesperson. Instead, the company focused on search-engine optimization, offering a free template that potential clients could use for their specific need. The approach delivered in-bound web leads.
“We got to be the number one organic search. It worked magic,” Shankar says. “As an entrepreneur, you should know where your customers are. … It could be a crowded stadium. It could be TV or online. You have to be in front of where your customers are looking for you. That’s where I would start, and then double down on that area.”
4. Elevate people from the beginning, and make your people successful.
As you expand and scale a business, leadership can be exhausting, Zhu says. As a new leader, she wanted to make all the employees happy. As the company grew, she chose to be transparent with the employees.
She put thought into how salaries were structured in the beginning, keeping in mind that specialized talents would be needed later on. As Lush grew, her mindset shifted. Beyond profitability, she says, “when you get to a certain stage, it’s about how you can make your people successful.”