Weitere ähnliche Inhalte
Ähnlich wie Building A Business For Growth & Value (20)
Building A Business For Growth & Value
- 1. Building a Business for
Effective Growth &
Increased Value
Presented by
Warren J. Rutherford
The Executive Suite
- 2. Key Points
Business Planning Elements
Planning for Value
Growth Strategies
Target Marketing
Financial Management
Human Resource Development
Transition Strategies
© theexecutivesuite.com 2009
2
- 3. Business Plan Elements
Executive Summary –
Mission, Objectives, Keys to Success
Company Summary –
Ownership, Products/Services, Locations/Facilities
Products and Services –
Description, Competitive Comparison, Sales
Literature, Sourcing, Technology, Future Products &
Services
Market Analysis –
Market Segmentation, Industry Analysis, Market
Analysis © theexecutivesuite.com 2009
3
- 4. Business Plan Elements
Strategy and Implementation –
Marketing Strategy, Sales Strategy, Strategic
Alliances, Service & Support, Milestones
Management –
Organizational
Structure, Management Team,
Management Gaps, Personnel Plan, Other
Financial Plan –
Assumptions, Financial Indicators, Break-even
analysis, Projected P&L, Cash Flow, and Balance
Sheet, Business Ratios.
© theexecutivesuite.com 2009
4
- 5. The Successful Business
Plan…
A Written document
Describes your business
How it will be successful
Outlines the purposes and goals of the business
Illustrates how the goals will be realized
Will include a detailed marketing strategy
Contains formal profit & loss projection and cash
flow projections designed to show that if
business develops as expected, it will be
profitable and will generate positive cash flow.
© theexecutivesuite.com 2009
5
- 6. Planning for Value
Align goals & objectives to specific value set
Values and guiding principles such as –
Humility, Loyalty, Trust
Respect for self, others, the competition
Caring, Responsive, Adaptable
Integrity, Credibility
Industrious, Hardworking, Fulfills Obligations
Socially Conscious, Legally compliant with laws
© theexecutivesuite.com 2009
6
- 7. Growth Strategies
Align functions to meet customer and
employee requirements.
Leverage information technology for
efficiency in customer service, production,
sales & marketing.
Establish goals that allow performance
incentives –align orientation to employees
– team-based, participative, empowered.
© theexecutivesuite.com 2009
7
- 8. Target Marketing
Customer Retention –
Who are your Customers?
Cross-Sell/Up-Sell –
What do your Customers like?
Increase Revenue –
Where can you find more Customers?
Target Marketing/Reduce Costs –
How can you best advertise to potential
Customers?
© theexecutivesuite.com 2009
8
- 9. Who Are Your Customers?
Do you know where they live?
Do you know how much they spend?
Have you identified what they purchase –
and do not purchase?
Are there ways you can service them
better?
Have you identified the purchasing
behaviors in your selling or “trade” area?
© theexecutivesuite.com 2009
9
- 10. What Do Your Customers Like?
How can you offer the right product to the
right customer, at the right time?
Based on your location, have you identified
the likelihood of what any customer will buy?
Have you developed a mailing list for
customers most likely to buy products you are
promoting?
Have you developed a model that identifies
cross-sell/up-sell opportunities at the point of
sale?
© theexecutivesuite.com 2009
10
- 11. Financial Management
Budget, then budget some more – tie to Plan.
Revenues, COGS, Other Expenses.
Budget analysis, break-even analysis.
Monthly P & L, Balance Sheet.
Regular Cash-Flow Analysis.
Aggressive AR process – professional
Regular, steady AP process – think credit rating
© theexecutivesuite.com 2009
11
- 12. Human Resource Development
Who does what, when, for what purpose?
And how well?
Job descriptions, pay rates, performance-
based pay, performance appraisals.
Employee handbooks – rules of the road.
Benefits – medical, leave, retirement.
Tie to value and guiding principles.
© theexecutivesuite.com 2009
12
- 13. Transition Strategies – When to
Begin an Exit Strategy
When you are ready to retire?
When you decide to pursue another endeavor?
When your child is ready to take control?
The day one starts a business is the best and
most appropriate time to implement an exit
strategy.
WHY?
You start out focused, tracking your personal
goals & business objectives.
© theexecutivesuite.com 2009
13
- 14. Why Plan to Exit When I Am
Just Beginning?
Establish a clear set of business goals.
Create the mechanism to monitor these goals.
Aim the strategy at building strategic value.
Value? Where did I hear that before?
Building strategic value contributes to
economic wealth for the Entrepreneur.
Strategic value derived from value drivers.
Strategic value transferable to a strategic buyer
commands an acquisition premium.
© theexecutivesuite.com 2009
14
- 15. Transition & Succession Plan
Choosing the successor.
Commitment to family and employees of the
business.
Using strategic business plan, identify specific
company objectives and goals for successor.
Provide family and business with set of goals to
strive for.
Position family members in functions with
complimentary skill sets to successor.
Leadership Transfer – Successor runs business
more, owner runs business less.
© theexecutivesuite.com 2009
15
- 16. Transition & Succession Plan
Owner establishes sound financial retirement
plan and outside activities to enjoy.
Family discussion on leadership skills needed,
entry and exit conditions, decision-making
policies, and conflict resolution procedures.
Successor works to practice sound
management.
Ensure employee benefit plans in place to keep
key employees.
Financing owner transition – options limited in
family-held company.
© theexecutivesuite.com 2009
16
- 17. Thank you!
For more information -
Warren J. Rutherford
Owner
The Executive Suite
129 Airport Road
Hyannis, MA 02601
wjr@theexecutivesuite.com
www.theexecutivesuite.com
508-778-7700
© theexecutivesuite.com 2009
17