As a business owner, you know that growth is essential to success. But as your business grows, you may find that things change in unexpected ways. That’s where the rule of three and ten comes in. Credited to Hiroshi Mikitani, Founder and CEO of Rakuten (a giant multi-billion dollar company employing over 30,000 employees), this rule states that everything changes at roughly every third and tenth step in your business growth. This can be seen in various aspects of your business, including customer growth and employee growth.
When you’re a one-person show, you can manage everything yourself. But at some point, you’ll need to bring on additional help. When you have two employees, things are still manageable because you can have one-on-one conversations. However, when you have three employees, something changes. A third of your business is no longer present in those one-on-one conversations, and you need to reevaluate your processes, technology, and tools to ensure they still work effectively.
As your team grows to four, five, and six employees, everyone can still sit down and have a conversation. But when you hit seven, eight, nine, and ten employees, things become more challenging. Even if everyone is present, conversations can’t be as focused, and there are too many opinions in the room. This is another milestone in your business growth, and you need to adjust your processes accordingly.
These milestones tend to happen at around 30, 100, 300, or 1,000 employees. But keep in mind that these are not hard and fast rules. Your business may experience these changes at different points, depending on your industry, growth rate, and other factors.
So, what can you do to ensure that your business continues to grow and thrive? First, take a step back and look at your team and processes. Identify whether you’re still running your business in a way that no longer works because your team has changed. If you’ve passed one of those milestones and haven’t yet changed some of your processes, it’s time to reconsider.
Second, be open to change. As your business grows, you’ll need to adapt to new challenges and opportunities. Don’t be afraid to try new things and experiment with different approaches. This is how you’ll continue to innovate and stay ahead of the competition.
Finally, invest in your team. Your employees are your most valuable asset, and they’re the ones who will help you achieve your goals. Make sure you’re providing them with the training, support, and resources they need to succeed.
In conclusion, the rule of three and ten is a helpful framework for understanding business growth. By recognizing these milestones and adjusting your processes accordingly, you can ensure that your business continues to grow and thrive. So, take a step back, evaluate your team and processes, and be open to change. With the right mindset and approach, you can achieve success at every stage of your business growth.
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