Face the Risks of Suddenly Being Viewed as a Family Business

As specialists in the strategic needs of privately held midsized companies, we naturally interact with lots of family owned businesses.  There has been more than one government study that has said that the owners of 90% of all privately held companies view their companies as “family businesses.”  That’s a lot!  Some owners claim they are “family owned” even when only one member of the family is involved.  No spouse, sibling, offspring, cousin or even an in law employed in the company! WOW.

It makes you wonder what is meant by “family business.”  In some folks’ minds, “family business” means trustworthy, hard working, stable, community minded, friendly, and focused on customer service.

But what does “family owned and operated” mean to prospective employees?  It can mean that their careers will be limited. They may assume that they will never be eligible for profit sharing, could never become an equity shareholder, will never be viewed as a top executive, and will never fully have the president’s ear.   It could mean that they should always be prepared to have some young kid brought in to become their boss. Being the boss’s son or daughter trumps any advanced education, job experience, or longevity with the company they may have.

If your business is family owned, it takes intentional effort to convey your policies about career advancement opportunities, your logic behind hiring and promotions, etc.  It can be difficult to attract top talent if you can’t tangibly demonstrate that you value “outsiders,” are open to having business partners who don’t share the same last name, and use contribution to guide profit sharing rather than genetics.

We were reminded about these kinds of issues recently when a company (now a client) inadvertently slipped into being viewed as a “family business.”  The president had needed some help with the firm’s marketing and had asked his very capable wife to help. He couldn’t figure out why his key employees were acting funny, seemed defensive, were suddenly worried about their futures, questioning his decisions, etc. He knew he was still the owner and their boss. But the key employees had assumed the premise of the business had changed.  If your company is a “family business,” make sure you know why and address the negative implications as well as the positive.  If not, be careful you don’t inadvertently slip into becoming one.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. Ambler is in the process of launching her 8^th enterprise. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, and search) help privately held midsized companies achieve accelerated growth with sustained profitability®. 2012 is Ambler’s 8^th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com

 

Prevent Slipping into Reactive Management as 2012 Begins

At the risk of sounding like I am channeling my inner Jean Dixon, here are a few of my predictions for 2012:

• The world economy will have another significant setback in 2012 sparked by disappointments about the pool of candidates for the US Presidency, a few large scale unsettling scandals, increased unrest in the Middle East, and major corporations continuing to hang onto their cash.
• More Baby Boomer business owners will move past the inertia of 2009 – 2011 to acquire, merge, or sell their businesses.
• Google’s purchase of Motorola will pay off as APPLE’s growth slows.
• Since the days of Nostradomus in the 1550s, this year has been the focus of doomsday thinkers.  Unfortunately, too many people will over-react with each natural disaster in 2012.
• The transition of leadership in North Korea, the instability in Iran, and the nuclear capabilities of both will increase in importance in 2012.
• The “War on Childhood Obesity” will gain momentum in 2012 as more schools embrace Rachel Ray’s menu and First Lady Michelle Obama’s advice.

A few may seem obvious to you.  A few may seem uninformed or just wrong. If my predictions prompt you to think, this blog has provided a service to you. I wonder what impact these and other developments could have on your business strategy and contingency planning for 2012. Should you conclude that you should be the bold acquirer or a reluctant seller? Will you increase your emphasis on wealthy or impoverished people?  Knowing that true wealth has always been traced back to times of stress and recession, will you be an industry leader or drop below the radar?  Does your executive team need to do anything different to prevent your company from becoming too reactive in 2012?

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. Ambler is in the process of launching her 8^th enterprise. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, and search) help privately held midsized companies achieve accelerated growth with sustained profitability®. 2012 is Ambler’s 8^th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.TheGrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com

 

2011 Was a Tougher Year for the Owners of Midsized Companies and Recent Retirees than the News Media Portrayed

Deep down, we all know that broadcast and print media have some biases.  (No kidding.)  During election years, some media outlets are compelled to emphasize progress being made, jobs being created, and consumers spending more around the Holidays. Following recessions with particularly long periods of uncertainty (NOW), some reporters play the role of consumer advocate to help unwitting buyers beware of high profile crooks. While the US Congress and President Obama took different stands on raising the debt ceiling in 2011, the media focus seemed quite partisan.

So why am I reminding you about media bias?

In the midst of all of the political infighting and fussy stories about progress, the personal portfolios of owners of midsized companies and recent retirees took a disproportionate hit during the summer of 2011.  For many, 2011 was as bad as 2008. That fact got lost in the media coverage.  So if you lost a lot of money in 2011, you could be wondering if you were cheated somehow instead of feeling “normal.”

Imagine if your investment portfolio of $10 Mil dropped 30% in 2008 to $7 Mil and then it dropped another 30% in 2011 to under $5 Mil.  People in that position thought they could stop working and turn their family businesses over to the next generation but now feel compelled to continue to work to replace lost money. Folks who retired from corporate management positions after 30+ years now wonder if they can afford to keep the house at the lake. Instead of investing in real estate, businesses, new products, and nice vacations, these people are worried and frozen.  This has a direct impact on job creation.

I also mention media bias because many of the people who lost large sums of money in 2011 (maybe you) wonder if you did something wrong, have lost some trust in your advisors, and feel stranded.  That combination of emotions stifles economic recovery.

If my words resonate with you, give your financial planner a call. Get explanations.  Revisit your personal financial plan. Base your decisions on real information rather than just worry.

Isn’t it interesting that a strategist who helps companies grow is suggesting that you request an appointment with your personal fee only financial planner. Mental attitude in one arena impacts the other.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is wrapping up her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business.VoiceAmerica.com and www.growthstrategistshow.com  which  features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.  

 

What to Do About Drift, Scope Creep, Unfinished Projects & Ineffective Messaging

Don’t feel bad if your company has drifted away from its strategic plan. Tough economic times can do that. Recessions invite worried sales people to agree to whatever price they can get any prospect to accept. Uncertainty can lead product development initiatives down several paths only to end up with unfinished projects. Insecurity cues marketing messages to become broad based, safe, generalized and ineffective. Service minded employees trying to accommodate today’s demanding customers quickly leads to scope creep on contracts and reduced profitability.

The operative words are worry, uncertainty, insecurity, and accommodate. That mindset leads to drift, reduced effectiveness, scope creep, and lowered profitability. If you are experiencing this phenomenon, you are normal…and the good news is that it’s curable.

Convene your management team to review updated data about the various subgroups within your customer base. Your company’s “sweet spot” may have inadvertently shifted.  Maybe in the past, your company was most effective and generated the best profit from small business accounts. Perhaps now, you should focus on medium sized businesses.  Maybe in the past, you could handle five distinct industries; and realistically, you now need to drop one and focus on four. Maybe the range of products/services just needs to be brought back into a smaller range so you can be more efficient, handle the risk, and feel a sense of accomplishment.

These “Let’s Get Re-Centered” sessions need to happen more frequently during tough economic times. What’s going on in the European economy does impact customers in North America. The politics of the Middle East influences decisions in South America and Asia. Technology in Australia matters to companies in Africa.

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is wrapping up her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business.VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com. 

 

Create an Optimally Sized Business Instead of Fretting About Succession

If you are the majority owner of a business and feel yourself shutting down when the subject of succession comes up, consider the following layers:

1. YOU – Reflect first on the results of appointments you (and your significant other) have had with your personal financial planner, physicians, estate attorney, and accountant.  When will you want to retire or reduce your workload? What is your life expectancy? What income will you need? Where will you want to live? Will you have caretaker responsibilities and expenses? Do you have long term care insurance? How much could your other income sources produce? How much do you need, want, deserve from the business? (These may well be 3 entirely different numbers.)
2. THE BUSINESS – Reflect second on the future of the business. In many ways a company is a living breathing entity. Think about the economy, the customer base, product life cycle, momentum, etc. What will the company need to be resilient? Profitable? Significant? (These too may be 3 entirely different answers/numbers).
3. PEOPLE – Reflect third on key individuals who drive the resilience, profitability, and significance of the business. What reward have they earned? What return have they been promised? What help will they need as you step back and some money is paid to you?
4. THE COMBINATION– What would  the optimum size of the business be to:
   • pay you what you deserve
   • ensure that the business is resilient, profitable, and significant
   • provide key people what they have earned and been promised
   • have leadership and skill sets in place to handle transition
5. HOW – What strategies would achieve optimal size, resilience, profitability, significance, and fulfillment of obligations to key people (including you)? Maybe you should consider acquiring a complementary company? Maybe you should consider merging with a competitor?  Will the company need to hire a President? Would an ESOP retain key employees? Perhaps improved marketing would be sufficient.

This sequence may seem obvious, but it is NOT what most people do.

Many business owners end up with a scramble of facts and emotions about themselves and other people.  Loyalty. Fear of the future. Legacy.  Entitlement.  Guilt.  Disappointment.

Especially during uncertain economies (NOW), many owners approach succession – related analysis from a pessimistic almost cynical viewpoint. I have seen owners work themselves up into horrible resentments based on arguments they have had with themselves in their own minds.  Without assistance, they never reach question # 4…let alone question # 5.

The optimally sized business meets its obligations to the owners, its key stakeholders, and its future. When there are honest answers to questions 1-3 , the optimal size becomes self evident and can guide strategic decision making focused on the market place, product differentiation, productivity, etc. with far fewer negative assumptions, resentments, and fear.

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is wrapping up her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business. VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

Launch a Second Enterprise or Create a New Department

George owns a content management website development company. Their capacity to attract and maintain programmers with sufficient experience in their content management software is simultaneously the optimizing and limiting factor for their growth. So, he is seriously considering opening a training program to build their pipeline of qualified programmers. An attorney quickly told George to start a second business.

The attorney is correct. A training company or school is a very different business from a website development company. This is especially relevant because George wants to open the school on another continent. But I was struck by the casual matter-of-fact tone of the attorney’s advice.

Yes, George can work with the attorney to file official papers to open a school. But before that makes any sense, George will need to have someone in place with experience opening and running a professional school. What credentials will instructors need to have?  How will recruitment and selection of instructors be handled? Who are the prospective students, and how will they be reached?  What would the curriculum be? How will competence be measured, a passing grade be earned, or certification achieved? What competition exists? What tuition is normal? What drop out and no show rates are common? What prevents graduates from deciding not to come to work for George’s company after they have been trained? What percentage of an instructor’s time can realistically be in the classroom? What will the hard costs be for facilities, work stations, telephones, utilities, etc?  How much gross profit and net profit should George expect from the school? Will the key person be a partner and eligible for profit sharing? How long would it take for the school to produce capable employees to achieve ROI on the venture?

His core business is growing. Recruitment is just not going fast enough. Search firms have produced disappointing results. George is VERY busy handling proposals and making sure that major clients are happy. Realistically, he won’t have time to oversee the launch of a second business right now.

It’s funny.  When we suggested that the content management website development company could establish its own recruitment department, George dismissed the idea because he thought that having a recruitment department would be too expensive and distracting.

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at http://www.Business.VoiceAmerica com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

Your Sales Force MUST Embrace the Strategic Plan or You Don’t Have One

Many of you are in very dynamic industries with rapid technical advancements, globalization, certifications required for preferred vendors, and an evolving pool of competitors. To keep up with (better yet…get ahead of) the changes around you, you are increasing the frequency of your market research, customer satisfaction surveys, and strategy sessions.

The process of research and analysis has led several of our clients to the conclusion that the rules have changed sufficiently in their industries that they must dramatically change their business models. A few are making the move from billing for hours to value/results-based pricing. A few are getting into private label products and focusing on niche markets. Some are going after much larger accounts and essentially “firing” the bottom 10% of their customers. One is dramatically modifying the role of the distributor in their industry. Another weighed the pros and cons of leading a roll up while another is seriously considering a merger to get the help they need with backroom operations. Most have to also address sticky succession issues.

An inexperienced person might jump to the conclusion that production level personnel would be the most resistant to change, assume their jobs are now at risk, and not want to learn.  In all of the cases mentioned above, the waged employees have not presented a challenge.  They have been excited that their employers are doing research, considering the future, starting new things, providing opportunities to learn new skills, and investing in survival and growth.

In a few instances, our clients have had to bring in a CFO instead of expecting their Controller to generate scenarios or deal with bankers and investors. In one case, the HR Manager was over his head and didn’t know how to change the company’s approach to recruitment. We got them into the Top Grading approach, which helped.

Absolutely, across all of these examples of companies changing their business models, the sales force has been the most reluctant to help, learn, accept, and change.  With the unemployment rate as high as it is these days, one would think that sales people would be a little more willing to try a new approach, go after larger accounts, learn to use updated systems, etc.  Despite involving sales people in the research, utilizing participative approaches to strategic planning, and providing training and coaching for success, these clients have had to put sales people on notice, let some of them go, and dramatically step up recruitment to attract future oriented sales people.

Nothing will torpedo a new strategic direction faster than sales people continuing to talk about the past or criticizing their employers for wanting to change.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is in her 7^thyear hosting a weekly peer-to-peer-to-peer on line talk show atwww.Business.VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

Dealing with Fault Lines

The CFO for one of my consulting clients had to run multiple scenarios, do complex contingency plans, and work very closely with their operations and facility managers because a few of their key installations are located near fault lines. You know…like the San Andres Fault Line.  They made a tough decision to relocate one plant because the risks associated with possible earthquakes were now too high.  They kept another installation near a fault line and invested in flexible structures, insurance, and evacuation/crisis plans to keep going.

Another client is also dealing with fault lines, and frankly, they are having far more difficulty addressing the problem. Unlike geological fault lines that are undeniable and measureable, behavioral fault lines can be more insidious.

It’s the new VP’s fault.  He has wanted to get rid of everyone in our department since he came on board.

It’s the Sales Manager’s fault. She doesn’t want to learn how to use our systems.

This is not my fault. There just isn’t enough access to the CEO.

The customers just aren’t listening to us.  It’s their fault they aren’t getting the ROI they want.

Both of these companies brought us in to do strategic planning and help them achieve truly accelerated growth with sustained profitability®.  Which one has more expensive challenges?  Interestingly enough, cooperation, measurement,  directly addressing the problem , and making tough decisions constitutes the best approach for both companies.

Aldonna R. Ambler, CMC, CSP has earned the right to be called The Growth Strategist™. She has won over two dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across four recessions.  Her midsized B-to-B service, technology and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search, etc.) help midsized companies in Achieving Accelerated Growth With Sustained Profitability®. Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer online radio program atwww.business.voiceamerica.com or www.GrowthStrategistRadioShow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

When Proud, Private and Practical Becomes Skeptical, Scared, & Shutting Down

For several years, midsized businesses constituted 30% of the companies and generated 40% of the GNP. But things have been changing over the past few years.  While the percentage of privately held midsized companies has held fairly steady around the 30% mark, their (your) contribution to key economic indicators (taxes, products, jobs, etc) has been steadily dropping.  Perhaps your business was a $35 Mil/yr company before 2008 and you are relieved to be hanging in there at $18 Mil/yr now…which makes your business one of the companies in those declining statistics.

In most markets, 90% of the leaders of midsized privately held companies view themselves as “family owned.”  The stereotypes come from somewhere.  Often these companies are proud, private, and practical.  These folks are not the first people to bring in consultants or hire “professional” managers or listen to the younger generation.  And the events of the past 10 years have not helped.

Proud, private and practical has turned into skeptical, scared and shutting down.

There are too many understandable reasons behind their (your?) cynicism. This recession didn’t feel like the typical economic cycle.  Owners of privately held midsized companies could see through the greed behind the subprime mortgage craze. They (you?) could tell it was a house of cards. And they (you?) can’t help but resent that huge irresponsible corporations were bailed out while the midsized companies took the full brunt of the collapse of the financial industry. And more recently, the US Congress seemed to play “chicken” with the debt ceiling and spending level decisions. The country’s AAA rating actually dropped.

The problem is that all of that anger, distrust, and uncertainty may be adding to the damage done by external forces.  Succession planning has screeched to a halt in many midsized companies. Research projects to learn what customers really value get postponed. Changing the business model to adapt to new realities seems overwhelming to many midsized companies.

OK.  It’s true that you understand your own business better than any outsider possibly could.  But if “just work harder” and “keep bleeding profit and jobs” have become your primary strategies by default, maybe it’s time to replace skeptical, scared and shutting down with some other adjectives.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™. Ambler is in her 7^thyear hosting a weekly peer-to-peer-to-peer on line program at http://www.Business. VoiceAmerica. com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

BEFORE You JUMP into a Joint Venture, a Strategic Alliance, a Franchise, Equity Deals, a Roll Up, an ESOP…

 

Recently, I’ve noticed more and more executives of midsized companies JUMPING into strategy implementation.

It’s too easy to fall in love with one strategy over another because you’ve heard a peer share a success story. “Hey, we could do a strategic alliance. George did it.”  Well written articles or webinars with great case studies can convert some people into raving fans of joint ventures or roll ups.  One of our clients became enamored with the idea of franchising his company after his wife was hired by a successful franchise.

The economy has created uncertainty.  Bright ambitious executives (perhaps you) feel like caged cats and are “itchy” for a change. It becomes very tempting to JUMP right into a strategy.  At least that way, something is happening, right?  Well, disruption might be happening that way, but your team will not understand the rationale behind the strategy you have jumped into. You lose credibility as a leader.  And successful implementation is risked. Some folks are JUMPING into strategies when they don’t know the differences between them, what each really involves, and the pros of cons of each. And then they are surprised when bankers are still reluctant to finance them.

Instead of jumping right into a strategy, this would be a great time to involve your executive team. Everyone could benefit from some concentrated learning.  Your controller could be asked to analyze the costs associated with strategies like franchising, roll ups, joint ventures, etc.  Your VP Business Development could be asked to analyze which approaches are being used in your industry and why.  Your General Manager of VP Operations could study pacing and look at what is involved with each strategy.  Everyone would be smarter and by the time you and your team select a growth strategy you will all have a much better sense of WHY it was selected.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called The Growth Strategist™. She has won over two dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across four recessions.  Her midsized B-to-B service, technology and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search, etc.) help midsized companies in Achieving Accelerated Growth With Sustained Profitability®. Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer online radio program Growth Strategist Radio Show, at www.GrowthStrategistRadioShow.com, that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy of the week. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.