The Business Cycle
Why do people hire small business consultants?
Small business owners hire consultants as a cost-effective way to bridge a gap in knowledge and skills within their company, or to bring a fresh, objective, and professional perspective to the company.
Optimization: In some cases, your company may have grown very quickly and you know there are lots of things you could be doing better - but you don’t even know where to start. A consultant can bring a fresh perspective, evaluate areas of your business to determine the processes and procedures that will get you growing again.
To create the solution(s): In some cases, you may have a goal that you can’t achieve, either because there is a skills gap or because it is simply not within your company’s core competency. Hiring a consultant can save time and money, and ultimately help you achieve a better result.
To find the problem(s): In many cases, a business may be exhibiting problematic “symptoms”, such as a decrease in sales, or cash-flow issues, and internal management is unable to pinpoint the source of the problem. In this case, a consultant can review the symptoms to determine the root of the problem.
Do any of these sound like you?
The development stage is the beginning of the business life-cycle. This is when your brilliant idea is merely just a thought and will require a round of testing in its initial stage. In testing your business idea, you may conduct research regarding the industry, gather feedback from your friends, family, colleagues, or other industry specialists. This is when you are determining whether the business idea that you had is worth pursuing and if so, will it be the birth of your new business.
- Developing the offer
- Developing pricing and business profitability
- Determine target market and market acceptance
- Establishing customer base
- Establishing business structure
If this sounds like you...this is when working with me will help you save thousands of marketing dollars and time trying things that don't work. In start-up mode I can help you get very clear about your offer, target marketing, pricing strategy, marketing strategy to get your business off the ground faster.
Your business has endured through the initial stages of the business life-cycle and is currently in its growth or survival stage. The business is consistently generating revenue and adding new customers. These recurring revenue will help pay for your operating expenses and open up new business opportunities. Currently, your business could be operating at a net loss or maintaining a healthy profit, but there could be some competition. This is also when you need to fine tune your business model and implement proven methodologies, sales model, marketing model, and operations model before expanding your venture for the mass market.
- Revenue isn't accelerating as fast as it should
- Require an increased client/customer base
- Effective management procedures
- Marketing strategy isn't working
- Sales process is not effective as it should be
If this resonates with you...this is when working with me will help you develop a sound sales and marketing plan that will build your revenue and customer base.
Expansion / Rapid Growth Stage
Your business has been a thriving company and established its presence in the industry. You have now reached the stage in which your business will expand and spread its roots into new markets and distribution channels. In order to start capitalizing on the success of your business, you will need to capture a larger market share and find new revenue. Therefore your business will experience a rapid growth in revenue and cash flow. The rapid growth stage takes advantage from the proven sales model, marketing model, and operations model set forth from your growth/survival stage.
- Moving into new markets
- Adding new products/services
- Expanding existing business
- Building your customer base
- Determining the right sales and marketing strategy
- Choosing the right marketing tactics to reach new markets
If this is the stage of your business...it's the perfect time to get a professional opinion for developing a sales and marketing approach for this next stage of your business. Testing the market and getting valuable feedback can save your business from making costly mistakes.
Take the necessary steps to make your business more attractive to sellers. Essentially, the key to selling is to assess the exit attractiveness of your business as soon as possible, define steps for improvement.
It's important to recognize that there is a spectrum of bad and good attributes that impact whether you can sell your business and whether you can sell it for a premium price. Your job is to eliminate the negatives and build the positives.
There are several areas of the business that need to be evaluated to determine the current saleability of your company.
- Net worth
- Market position
- Exit Strategy
Right out of the gate, prospective buyers will want to know if your business is profitable. In addition to a healthy bottom line, buyers will look for a multi-year trend of increasing revenue and a realistic forecast of continued revenue growth going forward.
Prospective buyers look for an established customer base that will remain with the business after the sale. The greater your ability to demonstrate a large and loyal customer base, the more appealing your company will be to buyers.
If you're at the stage where you are preparing to sell your business in the next 3-5 years, we should talk today. I can help you create a turnkey sales and marketing program that potential buyers will love.