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Category Archives: Growth Strategy

Business Planning in a Down Economy

By | Business By The Book, Buying a Business, Buying a Franchise, Growing a Business, Growth Strategy, Increasing Profitability, Investing in Small Businesses, Planning, Starting Up, Valuing a Small Business, Writing a Business Plan | No Comments
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Q: Should the economic forecast be an important factor in determining the type of business to start or acquire? A: Most businesses that are acquired or started are done so with a long time horizon in mind. Add to that the fact of the typical continuous cycles of any economy: (downturn, bottom out, upturn, and peak). Given that long-term view and the necessary expectation of economic cycles that almost defy the ability to forecast the timing of those trends, it’s more important to pick an industry/market in which you have loads of experience and create a superior offering with a…

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How to Win in the Midst of an Industry Consolidation

By | Business By The Book, Exit Strategies, Growth Strategy, Organization & Strategy, Selling a Small Business | No Comments
Big Fish Little Fish

Industry consolidation is the process when a few companies start buying up other companies in the same industry and the number of competitors in an industry shrink dramatically. The main goal for the consolidators is to grab market share, cut costs, boost productivity, and improve investment returns through scale economies. I’ve studied industry consolidation in business school, participated in a few industry consolidations as a consultant, and I founded a company in my current portfolio to take a lead role in consolidating its target industry. Industry consolidation is almost inevitable: over time, most industries will consolidate to where the largest three…

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How Hard Can It Be to Start a New Insurance Agency?

By | Business By The Book, Growth Strategy, Leadership, Ownership & Purpose, Sales & Marketing, Starting Up | No Comments
Insurance Agency

Q: Thank you for all of the resources on sales and marketing that you offer. I am planning on becoming an independent insurance agent for a large insurance company. Will your resources here, including Venture Academy help me get leads and will that be my biggest obstacle in selling supplemental insurance? A: Our sales and marketing resources and video training do not include “leads”, but cover how to think about your sales pipeline and how to manage it in order to build your business. Selling insurance and building a book of business is a long, slow process. In my opinion,…

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Acquisition Growth vs. Organic Growth

By | Business By The Book, Growing a Business, Growth Strategy, Planning | No Comments
Acquisition Growth vs. Organic Growth

When I started a property management company, I got things rolling by acquiring three firms and combined them into one and then began focusing on organic growth off of that launch platform. The shift from an acquisition growth strategy to an organic growth strategy was not my original intent, rather, it was in response to the lessons learned in the first two years of buying and integrating the first three companies. I got an email today from another CEO in my industry that was interested in selling his company to me. I’m not interested. Read on to understand why. One…

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Feast or Famine on Sales

By | Business By The Book, Growing a Business, Growth Strategy, Marketing, Sales, Sales, Sales & Marketing, Social Media | No Comments
Juggling Priorities

Q: I find myself really struggling right now to maintain an even level of sales. My work seems to come in chunks and by the time I’m finishing up, I have to jump back into sales mode and it always takes me a month or two to rebuild enough momentum to bring in more sales. I’m not sure if you can help or not, but any advice would be appreciated. A: What you are wrestling with is the classic dilemma of a small owner/operator that is both selling the service and delivering the service. It is very difficult to do both…

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The Importance of Google for Your Business

By | Advertising, Business By The Book, Growth Strategy, Marketing, Marketing, Sales & Marketing, Search Engine Optimization | No Comments
The Importance of Google to Your Business

If you were ever wondering about how important search engines – and Google in particular – are to your business, check out these facts: 70% of web searches start at Google 89% of all clicks come from Google’s first search page 84% of people use the web to look for local businesses Add the behavior reality that very few Google searchers scan below the fold (the “fold” is the amount of search results that can be seen at the top of the search returns in your browser without scrolling down). And even far fewer searchers, ever click to the second,…

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Institutional Equity Financing (Venture Capital and Private Equity)

By | Business By The Book, Finance, Finance & Accouting, Financing a Small Business, Financing a Startup, Growing a Business, Growth Strategy, Investing in Small Businesses | No Comments

Equity Financing is usually invested based upon the future prospects of a company and the anticipation of a future exit event that will provide acceptable returns to the investment fund. At the Growth Stage, Equity Financing is typically in the form of growth-stage Venture Capital invested by institutional venture capital firms, and at the Middle Market stage, Equity Financing is typically in the form of Private Equity invested by institutional private equity firms. There are also 571 active corporate investment arms that are identifiable that actively make corporate investments in smaller companies as a part of their growth strategy and…

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Venture Academy Video Excerpt: Fixed Asset Investment

By | Business By The Book, Finance, Finance, Financing a Small Business, Growth Strategy, Investing in Small Businesses, Office and Operations, Venture Academy | No Comments

This video provides insight into the impact of the level of Fixed Asset investment in your business planning:     This video is just 1 of nearly 200 videos available with a Venture Academy subscription and is excerpted from the Venture Analysis section.

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Expect Negative Surprises When Acquiring a Business

By | Accounting, Business By The Book, Business Development, Buying a Business, Financial Reporting, Growth Strategy, Investing in Small Businesses, Negotiations, Ownership & Purpose, Selling a Small Business, Valuing a Small Business | No Comments

Some aspiring entrepreneurs will get started by buying an existing small business and many business owners have growth plans that include buying up other businesses to add larger chunks of growth via acquisition (mergers and acquisitions or “M&A” growth as opposed to “organic” growth). And if you are a business owner, you will most likely at some point sell your business. So here’s a few tips to both sides of the transaction… While it may not be statistically significant in terms of all the deals ever done, in my experience of negotiating with roughly 300 prospective sellers, signing approximately 75 letters…

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