Growth

Home Services Growth

Growing the business is a great feeling. You will need however to address new challenges once you progress through different plateaus.

Addressing these challenges wisely will gradually improve productive, introduce best practice and present new options. Your business will grow to the next level.

  • Get sales done, with traction.
  • Make investments in people and in assets.
  • Improve branding and marketing. More important than most people believe. Not least for new customers.
  • Organize and continuously develop the production, the logistics and the related processes.
  • Define usable processes. This might not be on top of mind but is a must if to operate efficiently.
Advise growing the businesses

Get this right, step by step as your business grow, and profitability, quality and customer satisfaction will follow. Get in touch if you like some help and advise growing the business.

Ymer workshop advise growing the business
A workshop at Ymer Technology in Ljungby is being cleaned and painted. Preparing for expansion.
Jonas Florinus advise growing the business
Jonas Florinus in dialogue on growth and new customer acquisitions.

Key features

To get sales traction

The sales, products and services development is crucial for business success. It is a mantra often heard, and it's an all correct statement. Noteworthy it is easier said then done. It is important to find out exactly what it takes to get to the next level to start see results. Sales is about focus, prospecting, endurance, timing and to be relevant. It makes a big difference doing these activities in line with best practice. 

Examples of sales related topics when the business is growing

With sales traction comes new sales related topics that needs to be addressed. Seek advise growing the business:

  • Do we build volumes? Eventually you will have to address those individual orders that are to small. Hence challenging to bottom line profit and growth it self.
  • Also; are the gross and net margins sufficient to actually support growth?
  • When is it time to enter new markets or adding new products or services?
  • Can we organize sales differently to improve efficiency?
  • How do we set relevant and achievable stretch targets?
  • And can KPI's improve the efficiency and how can KPI's be used most effectively?

Need help and support to take your business to the next level? Get in touch for a discussion if you like to discuss possible advise growing the business.

Reaching different plateaus

When there is growth and traction, you will gradually reach different plateaus with new challenges. Consequently growth is one of the more complex tasks to work with. To seek advise growing the business is money well spent.

Some examples of challenges when reaching new plateaus
  • Hiring staff and managing a growing organization.
  • Introduce accountability and ensure continues improvements.
  • Setting processes to get better organized.
  • Get the entire organization to manage an increasing working capital.
  • Getting finance and reporting in order to support business decisions.
  • Organize relevant supply chain management and production capabilities.

You need to know when to address what. Also you need to get leverage and the growing organization to pull in the same direction. And not least you will need to know when to prioritize and make the various initiatives a reality. By gradually solving these challenges at the right moments you will create traction past each plateau, with minimum business interuptions.

Need help and support to take your business to the next level? Get in touch for a discussion if you like to discuss possible advise growing the business.

Inhouse or partners
Own sales organization, agents or partners?

Another topic you face is if and how to grow sales through your own organization, or through agents or partners? Or maybe a combination thereof. There are different advantages and disadvantages, and the methods to put into action will be different. To seek advise growing the business is well recommended.

Subcontracting or bringing part of manufacturing inhouse?

The same considerations goes for production. Engaging with subcontractors is a logical choice in the early days of the business. The advantages include competences, resources, limited capital needs, etc. However, once your business grow you might like to control delivery quality and improve margins in every step. You might also develop a desire to find engineering synergies from production.

To balance purchasing, subcontracting and to potentially build your own assembly or production capability is challenging. But, potentially doing so would create substantial value to the business.

Need help and support to take your business to the next level? Get in touch for a discussion if you like to discuss possible advise growing the business.

Organization, working capital...
Building organizational structures

With growth comes topics such as organization, processes and a range of production related topics that you need to adress. Not all at once, but gradually.

Most MidCap businesses has one or several key individuals making the real difference to the business. To grow, you would need to nurse those entrepreneurial spirits and advantages but also start building the intellectual properties. Building a solid ground for further and enduring business growth.

Not only will the new employees be more accountable, efficient and productive with certain structure, processes and documentation. So will the founders and other key individuals in the company as well. There is a balancing act to consider however: At times there is a risk focusing too much on internal development as apposed to customers and production. Seek advise growing the business.

The all important working capital. Everyone's responsibility.

Working capital is another important focus area for growth. Surprisingly many companies reach stagnation and even insolvency despite growing and being profitable. Cash flow and liquidity fuel growth, not sales, and not even profit. Being on top of payment terms, due-dates on invoices, materials handling, stock turnover etc. involves the entire operation.

Need help and support to take your business to the next level? Get in touch for a discussion if you like to discuss possible advise growing the business.

Business Plans
Poor business plans

For too many large companies the business planning process has gone overboard. Their are head office planning professionals spending the entire year on planning. Preparations, instructions, the actual planning, year end board presentation preparation, and then it starts all over again. Planning the plan for next year. The true cost is high, not least considering all internal preparation meetings through-out the organization. More importantly however, it often miss the point of engagement of relevant business people working the plan. Meaning creating focus and accountability on the core of the business and key value drivers for next years. And not least excluding things, which is a major benefit of planning.

Their are also a few examples of financial investors expecting thick power point stacks where format eventually goes beyond content. This will occupy a lot of key resources with limited operational value. But investors will be happy.

Better business plans

Now disregard those examples of poor business planning. As a mid-size or large company you are well advised to make a plan. However, keep it short, focused and milestone oriented.

Someone might administrate the autumn process but the management team and a few other key individuals shall be personally engaged. Discussing and producing the plan is one of the major benefits of business planning. More important than the slides that are the visible end-product. And remember, excluding things, understand why and come to an acceptance, is a major benefit of planning.

A trick would be to make a three year plan and only revisiting the plan at year 2 and 3. I.e. not having to redo the business plan every year. To the business plan, you will also need to align the budget, with an extra-focus on year 1. Alternatively you can use a rolling forecast and hence merge budging with forecasting. Finally, specific milestone targets and KPI's needs to be agreed.

Purpose and objectives

So what is the purpose and benefit of these slides (which the plan is often presented on)? As the German General von Moltke said back in 1800: "No plan survives contact with the enemy." I.e. when your plan meets the real world, the real world wins.

Well, to grow the business to the next level you need leverage. All staff needs to really understand the goals and KPI's and feel accountable for them. And to exclude things will be important. Also you need to set stretch ambitions. You need a foundation to align everyone towards the targets and KPI's. Finally, you need leverage. Hence you need a plan to align your forces and keep track on progress. There is another saying supporting that: "What get measured gets done."

Finally, a relevant quality plan will also be a necessity for building a solid relationship with your banks. Parts of the planning material might even be used if you have major customer revisions.

Need help and support to take your business to the next level? Get in touch for a discussion if you like to discuss possible advise growing the business.