Tailored to Your Business Growth Phase
Staying profitable in today’s economic environment requires a constant focus on strategy, collaboration, and accountability.
- BUSINESS START-UP – GROWTH THROUGH CREATIVITY
- BUSINESS GROWTH – GROWTH VIA DIRECTION
- BUSINESS SUCCESS – GROWTH VIA STRATEGIC PLANNING
- BUSINESS MATURITY – GROWTH VIA COORDINATION
- BUSINESS WEALTH TRANSFER – GROWTH VIA DELEGATION
In the Start-up growth phase, the main problem of the business is obtaining customers and delivering the products and services. Among the key questions are the following:
- Can we get enough customers, deliver products, and provide services well enough to be a viable business?
- Can we expand from a one key customer approach or one pilot program to a much broader sales base?
- Do we have enough money to cover the considerable cash demands of this Start-up phase?
In this growth phase your business has demonstrated that it is a workable business entity. It has enough customers and satisfies them sufficiently with its services. The key problem shifts from mere existence to the relationship between revenue and expenses. The main issues we address are as follows:
- In the short run, can we generate enough cash to break even and to cover the repair or replacement of our capital assets as they wear out?
- Can we at a minimum, generate enough cash flow to stay in business and to finance growth to a size that is sufficiently large, given our industry and market niche, to earn an economic return on our assets and labor?
- Can the owner delegate responsibility to others to improve the managerial effectiveness of a fast growing and complex enterprise?
- Will the strategic plan include true delegation with controls on performance improvement?
- Will there be enough to satisfy the great demands growth brings and cash flow that is not eroded by inadequate expense control?
In this growth phase we look at whether to exploit business accomplishments and expand or keep the company stable and profitable. The key issues we may address are:
- Whether to use the company as a platform for growth or as a means of support for the owners as they partially or completely disengage from company?
- Can the owner delegate responsibility to others to improve the managerial effectiveness of a fast growing, complex enterprise?
- Will the strategic plan include true delegation with controls on team performance?
- Will there be enough to satisfy the great demands growth brings and cash flow that is not eroded by inadequate expense controls?
BUSINESS MATURITY – GROWTH THROUGH COORDINATION
In this maturity growth phase, the greatest concerns of the company are first to consolidate and control the financial gains brought on rapid growth and, second, to retain the advantages of small size, including flexibility of response and the entrepreneurial spirit. The corporation must expand the management force fast enough to eliminate the inefficiencies that growth can produce and professionalize the company by use of such a tools as: budgets, strategic planning, management by objectives, standard cost systems, and do this without stifling its entrepreneurial qualities.
BUSINESS WEALTH TRANSFER – GROWTH THROUGH DELEGATION The key problems in this growth phase are how to grow rapidly and how to finance that growth. The most important questions are in the following areas:
- Delegation – Can the owner delegate responsibility to others to improve the managerial effectiveness to others and increasingly complex enterprise? Further, will the action be true delegation with controls, performance improvement, and a willingness to see mistakes made, or will it be abdication, as is often the case?
- Cash – Will there be enough to satisfy the great demands growth brings (often requiring a willingness on the owner’s part to tolerate a high debt-equity ratio) and cash flow that is not eroded by inadequate expense controls or ill-advised investments brought about by owners impatience?
We recommend that you start with OPERATIONAL COST CONTINUOUS IMPROVEMENT and TEAM PERFORMANCE DEVELOPMENT SOLUTIONS with our standard assessments: SAVE™ and STAR™ our employee needs assessment.