Business Growth is a Calculated Risk

CEO Advisor, Inc. can help you grow your business

CEO Advisor, Inc. can help you grow your business

Growth of your business should be the result of your overall business strategy. It should not be a reaction to solve a particular cash flow issue or problem in the company.  Knowing the best strategy to use should be the task of the company’s CEO or business owner, along with its key managers or board of directors.  Whether your company does or doesn’t have an active board that participates in the strategic management process, consider a business advisor to help you during these critical steps and planning processes.
 
In today’s highly competitive environment, the decision to grow or expand a small business should be made once you have properly planned for the key issues and steps.  Too often, plans for growth fail to meet the company’s long-term strategic goals.
 
Outside directors and advisors bring fresh, new ideas to a company and can provide valuable insight about strategic matters.  The decision to grow the business and the course of action taken will be a major determinant to your future success.
 
Many smaller companies aggressively pursue expansion when they are not prepared to do so.  Entrepreneurs also become “locked” in the entrepreneurial mode, a company’s first stage of growth, when it is time to transition to the planning mode.  The planning mode involves the execution, tools, expertise and strategic management process to dramatically increase the opportunity of success.
 
The CEO/owner who is in the entrepreneurial mode tends to be consumed with the operational issues of the company and pays little attention to strategic growth or the changes taking place within the industry.
 
Because so much is at stake whenever the decision is made to grow your business, it’s critical to understand the company’s current position and performance before committing resources to growth. A good understanding of the company can be achieved through a process often referred to as a strategic assessment.
 
The Strategic Assessment
 
This assessment process can reconfirm or even inform the CEO/owner of the strengths within the company that may have been taken for granted. An assessment also brings out the weaknesses within the organization that must be acted upon.

The strategic assessment is performed by a business advisor and begins with an initial client interview with the CEO/owner of the company.  The interview covers the company’s history, a review of the organization, the products/services offered, sales/marketing programs and financial reports.
 
A series of meetings with the CEO/owner takes place, focusing on the assessment and covering all of the functional areas within the company. The meetings cover management issues, personnel, marketing and sales, operations and finance, SWOT determination and recommendations/goals are developed and finalized.
 
The assessment process can help you identify the best strategic alternative for growth – organic growth, acquisition, as well as, hold for a period of time, or even a sale of the business. Provided a growth strategy is chosen, the CEO/owner and management along with the business advisor must then select the type of growth strategy that would be most beneficial.
 
Companies that have taken an aggressive growth path without consideration to overall strategic fit and timing have paid a very high price for this decision. Knowing when to hold on a specific growth opportunity is just as important as forging ahead.
 
To gain a better understanding of your current situation and your growth alternatives, contact CEO Advisor, Inc. today! We have helped many CEOs and small business owners confront these issues, and grow their business to the next level.

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One Response to Business Growth is a Calculated Risk

  1. Ron Tedwater on November 21, 2010 at 1:13 am

    Thanks for the post

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