The Seven Steps Beyond
By Marty Shindler
Ten Steps to a More Profitable Company, which appeared in Me!dea Vol. V, no. 7/8, is designed to provide the small to medium sized company with a framework that will help them succeed. After all, one does not live by creativity and technology alone. The business perspective as a base of operations is vital for success, success being defined as profitability over an extended time. Revenue growth alone is insufficient.
Haphazard growth in the end will bring a company down, unless, of course, there is an open checkbook mentality on the part of the investors. Unfortunately, very few organizations have that luxury.
Today, there appears to be unprecedented growth in boutique operations in the post production industry. The availability of lower cost equipment, sophisticated communications tools, etc., makes this mode of business quite attractive. Yet, the probability for success for these companies is low, unless the business perspective is present.
The issues, which face many organizations as they grow, are how to grow larger. That may seem a bit incongruous and difficult to identify as the growth spurts are in process. While growing in spurts may be good in some cases, long term there needs to be a plan in place. Period.
The following steps, The Seven Steps Beyond, are designed to help organizations get to the next level. The building blocks incorporated into the Ten Steps to a More Profitable Company must be in place as support for this, the second phase.
It need not be a written strategy/business plan, although sometimes the time and effort of getting it written down, both text and financial projections, helps to formalize the plan. In preparing the business plan, include thoughts on each of the key disciplines of an organization. Above all don’t toss the document on the shelf when the work is done. Refer to the plan regularly. The plan is yours, not the banker's, board's or potential investor's.
Work must be fun. Work that is not fun is work and that is no fun!
Consider having an outside board of advisors meet periodically with you as a group. Since these people are not on your regular payroll, you will get the independent thinking that you expect of them. That thinking can be instrumental in a growing organization.
What an easy way to get new business. What a sloppy way to lose business. The market is competitive enough on various other fronts to have lack of follow up and follow through be a factor.
How often have you been the buyer and were disappointed that the seller did not get back to you in a timely manner? Do you do that to your prospective customers? Do your vendors provide you the information you request as and when you want it? Do you respond to your vendors and potential vendors as you want them to respond to you?
Lack of follow up and follow through is fundamental in any organization. In a growing company, it is something that too often falls through the cracks. Those cracks eventually can grow bigger, and are often irreparable.
This is not meant to imply that all sorts of confidential information should be shared. It does imply that there can be a strong sense of satisfaction among employees with some shared information and a sense that their roles are important to the organization.
Marketing is frequently defined broadly as sales promotions, managed communications, product channeling and industry marketing and strategic alliances. A sale is the element that generates cash. Companies need to understand how the product or service will be sold. Determine who will be doing the selling, where they are located, how they are supervised and most importantly, how they are compensated.
Never forget that one of the most important elements is the Executive Sales approach. Company executives must be able to sell the services or at a minimum lead the relationship. Lack of Executive participation in the sales process is certain to hamper long term growth.
Finally,in tough times, do not cut the sales & marketing budget. That is the time to put more effort into those functions.
Getting to the next level is not easy. There are numerous companies who have failed that offer testimony to that. Successful companies do not become successful solely on luck. Successful companies plan and build for success. What is your recipe for success?
Marty Shindler is a management consultant who has added a business perspective to many creative and technical companies. Marty may be reached at shindler@aol.com.