Every business goes through cycles. It begins as an embryonic organization usually started by an entrepreneur, progresses to the growth stage Every business goes through cycles. It begins which usually requires a professional manager, and then over time may go through a mature stage headed by a caretaker, and finally to an aging state which will likely require a turn-around specialist.
The ideal position in this cycle is at the top of the curve. The investment to start the company and to promote its growth resulting in an attractive cash flow has been made. As the company ages, additional investment will normally be required in order to maintain a competitive position. Without such investment, the business gravitates to an aging mode which, to remain solvent, will need to be reborn or it will die.
The key to continued success is to recognize when additional investment must be made and in what areas to invest. The answer to “When?” will normally be before the top of the curve is reached. The answer to “How?” will differ for each organization. For some, new or enhanced products will be required. For others, it may require new or expanded markets. For others, growth can be achieved through joint ventures, strategic alliances, or acquisitions.
The determination of when and how can best be accomplished through the process of Strategic Planning facilitated by a professional. Decisions necessary to ensure the perpetuation of the organization will be made through this process. This process should be followed by the process of Manager Resource Planning which includes Succession Planning. Such planning ensures that the necessary human resources to make the plan a reality are in place. Again, the process should be facilitated by a professional.
Extensive financial planning must take place. In some cases, this will involve exit planning and estate planning. In other cases, it may require wealth planning, how to best capitalize on the significant investment that has been made by the owner. Such planning should be done by professionals who have the necessary background and expertise to offer alternatives and to tailor a plan to meet individual needs. Irons Group Ltd. has allied itself with such financial resources..
The business cycles are real. It is critical to recognize the cycles and take appropriate action. This can be done through Strategic Planning, Manager Resource Planning, Continuity Planning, Financial Planning, and Exit Planning.
Consider a no-obligation face-to-face visit with Keith and make a decision with which you will be comfortable. Contact us here.
Speak Your Mind