Handling growth can be daunting. Most business owners say they would love to have the problem of having too much demand for their product or service. Those who have battled through explosive growth and trying to keep their head above water might differ. We work to help our clients achieve manageable growth built around a profit plan. This will ensure you don’t run out of money and that you have other capable people in your organization to shoulder the burden with you.
Running as hard as you can just to stand still can be very frustrating as a business owner. Many of our clients were stuck at a similar level of sales and profits for years when we met and they weren’t sure how to break out of that rut. Maybe the current team has taken the business as far as they can and an upgrade is needed. (You as the owner can only do so much.)
Often, it’s the lack of a true marketing effort to drive profitable sales. Sometimes we find there is a customer or two that you should fire because even though they provide quite a bit of revenue for your company, they are not the right type of customer for you and they are hindering your potential growth. Maybe your base business is as large as it’s going to get and it’s time to consider growing in other areas. Ever consider buying another business?
If your business is losing money or not making as much money as it used to, the first step is figuring out why. If your response includes excuses like: “The economy” or “All we need is more money!” - then you really don’t know why your business is on the decline. The uncomfortable truth is that it’s likely due to poor management and leadership. We can usually figure out what needs to be done pretty quickly. Often the current owner knows most of these things as well.
It comes down to the courage and fortitude to make those tough decisions. Things like getting rid of employees who are holding you back or getting family members off the payroll who aren’t adding enough value to the business and/or pulling together a 90-day cash forecast to show you can actually make money in the short-term. If not, why keep losing more money? Maybe someone else should be leading the organization if you aren’t ready to make the tough calls.
Transitioning (May include selling your company)
I just can’t physically put in the hours like I used to. Does that mean it’s time to start moving on? How do I know when my daughter is ready to take the reigns so I can step back? Now what? What does “retirement” look like? I’m not ready to sit around all day doing nothing.
There are lots of people to help you with the nuts and bolts of structuring the right trusts, tax advantaged vehicles, life insurance policies to fund a buyout, etc. MVP can help you with the real stuff. Transitioning the day-to-day management of the business to the next generation using our 7 Keys to Success to guide the process.