Our products/services are selling. We have created a substantial customer base. We are still a relatively small player in the market, but we are making headway. We are recognized in the marketplace by both our customers as well as our competitors.
Sustained growth should be at the head of the agenda during the Growth Phase. In order to sustain growth, systems need to be put in place and refined. Emphasis should be placed also on refining policies, procedures and practices so that gross margins can be enhanced. This will allow funding growth internally, and reducing the requirement for excessive capital infusion. The balancing act between taking advantage of every opportunity to grow and controlling the business is key during the Growth Phase.
Items to Consider:
During the Growth phase of the business, the following items are essential to thrive and even survive this phase of the Business Lifecycle:
Product/Service Considerations – Are our manufacturing and delivery policies and procedures developed such that we can meet market demand and maximize our gross margin? Are we servicing our customers in a way that develops customer loyalty?
Market Considerations – Should we be marketing to other geographies or market segments? Do our marketing investments deliver brand awareness?
Operational Considerations – Is our sales force properly organized, incentivized, sized and do they have the tools to sell the product efficiently? Are we able to obtain the information from our systems that allows us to manage the business effectively and make changes time?
Financing Considerations – Is our investment in working capital aligned with our growth needs? Are we effectively managing our cash position as well as our lines of credit and other debt facilities? Are we over/under invested in plant and equipment?
Business Plan – This is no time to forget about the Business Plan. The Company is changing on a regular basis now. Shared vision is key to attracting and maintaining the best employees. The Business Plan can and should share management’s vision with employees, investors, customers and other stakeholders and potential stakeholders in the Company.
How We Can Help:
During the Growth Phase of the Company, it is essential to focus on those things that will sustain growth. Now that manufacturing is a repetitive task, areas of focus should include increasing manufacturing efficiency and reducing costs in the inventory and manufacturing systems. Also, marketing strategies need to focus on creating brand awareness and brand loyalty. Service and customer loyalty programs need to be implemented in order to ensure customers continue to purchase the Company’s products. Policies, procedures and systems need to be reviewed and adjusted to meet larger volumes and to emphasize transactional cost savings. The Company’s sales force needs to be aligned with the Company’s growth and profit margin objectives. CXO Vantage can help you in all strategic and tactical areas as you negotiate your way through the Growth Phase of the Business Lifecycle. To set up a free introductory visit with CXO Vantage to discuss your current situation and how we can help guide you as you Grow your business, call (801) 930-0842 or email us at email@example.com