PREPARING YOURSELF FOR MANAGING GROWTH
How do you manage a growing company? What can you learn from other CEOs facing the dual challenges of maintaining growth and profitability? What issues are you likely to face and how can you best resolve them? We address these questions and more.
We believe our book is unique. We combine extensive interviews and data from nearly two hundred companies along with first hand experience in building J. P. Industries (JPI), a Fortune 500 company.1 Our diverse research and management experience confirm that companies are dynamic and must be managed that way. We sum up our guidelines in the Dynamic System Planning Model that we will show is practical yet based on well-tested theory. We especially address challenges faced by small growing firms. But the model applies whether or not your company is growing right now. It applies whether you have five employees or five thousand, whether you face a maelstrom of growth and change or stagnation and decline. The model provides a means to develop a more successful company strategy for higher profits and growth.
THE DECISION: TO GROW OR NOT
Consider this unusual concept: you don’t have to grow to be self-employed and financially secure.
Ron started several businesses during his life, but once each venture was underway, he eventually reached a point where the business managed him rather than the other way around. While adept at identifying new markets and making sales, when it came to working with other employees, assigning tasks and coordinating their efforts, he never seemed quite able to make the transitions needed to assure business success. After several such failures, Ron hit upon a suitable niche for his talents–as a promoter of trade shows. He has no employees to contend with, each show is of relatively short duration, and he can move on to the next project before he gets bored or runs into complex management challenges.
Continue reading Managing Growth
Dr. John Psarouthakis, Executive editor www.BusinessThinker.com and entrepreneur of the year awardee.
You probably relish the challenge of seeing how far and how fast you can grow. Growth can be an exhilarating experience and public recognition of growth accomplishments abound. Most honor rolls of business, such as the Fortune 500 and Inc. 500 base selection on sales or sales growth.
But beware. So much hoopla accompanies rapid sales growth that the question of profitability may go unexamined until major problems set in. My experience confirms the critical point that growth alone does not guarantee profitability or long-term survival–and can actually spell disaster if improperly managed.
The case of an auto parts supplier entrepreneur highlights this point. At one point in his firm’s meteoric growth, he received many local, state, and national awards honoring his accomplishments, including Entrepreneur of the Year.
Continue reading WARNING FROM AN ENTREPRENEUR OF THE YEAR
This is the 1st of a Series of 15 short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week
Buying a company is by far one of the most complex purchase activities most individuals ever undertake. A far broader array of skills and knowledge is required than for any other purchase, certainly much more so than purchasing a house or an automobile. And although an infrastructure exists, the prospective buyer is expected to be familiar with many of the rules of the game before undertaking such a venture or he or she won’t be taken seriously. Fair or not, age provides a rough yardstick by which many prospective buyers are initially measured by the broker and banking community. Younger buyers must overcome issues of credibility. Senior buyers must deal with the concern that they lack the energy and/or are too close to retirement to take the project seriously and must overcome their own hesitancy to start over with a new company. In spite of these obstacles, adults in a very wide range of ages successfully purchase and run their own companies. Strong drive or desire, among all the personal characteristics is perhaps the single, most important ingredient in assuring their success.
Reference: “How to Acquire the Right Business”
by John Psarouthakis and Lorraine Uhlaner