Business development
Business development and profit improvement
The NS team has substantial experience of going into both small and large businesses and assisting business
principals and directors along with their management teams make significant improvements leading on to growth and
profit improvement.
Key questions...
Developing and growing the
business and securing profit improvement are the goals of most progressive organisations but, regrettably, only a
minority succeed. Some are fortunate to be in the right place at the right time and enjoy extraordinary, seemingly
effortless, success.
First steps...
However history shows that a
majority of those who succeed are high achievers who follow carefully structured plans, based on proven principles.
Here are some of those principles...
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Before you start to plan for growth ask these questions...
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Who are we and why are we in this business?
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What is wrong with our business?
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What chances/opportunities have we missed?
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If there were missed chances/opportunities - why did we miss them?
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Did we document it for future reference?
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Are we doing what we are good at?
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If yes - could we do better?
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If no - should we be doing something else?
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What else should we be doing?
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Have we established an exit plan?
This is not an 'exhaustive' list, and there are no 'right' answers to these questions, but an honest appraisal now
will help to protect you from failure and, importantly, make a positive contribution towards a solid foundation for
expansion and growth in profitability based on facts, not supposition.
Second steps...
If you want
to start the process, carry out this exercise next - it could pay you dividends...
Examine your historic business performance, trends, growth patterns Analyse your successes and failures and
document them frankly and, with respect to Mr. Henry Ford - not all history is bunk! Circumstances in companies
have a curious habit of repeating themselves and in order to prepare for growth and achieving success means you
need to be aware of past mistakes and protect against them in the future.
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Examine your competitors carefully; get to know them, assess what their reactions will be to your
projected growth
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Are you aware of competitors from lower cost economies and have you modelled the effect these could
have on your current and future business?
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Assess the global market position - what are the trends?
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Is the demand for your products and services growing or declining?
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What is the future for your products? Could they be superseded?
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Are you already innovating, designing and developing new products and services? Your competitors almost
certainly will be
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Have you created a system to generate new ideas for future business?
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Will a larger business be more profitable? When did you last model two or more sensitivity analyses?
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Would it be better for you and your business to grow organically or by merger or acquisition?
Key steps for business development, growth and profit
improvement...
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Define your objectives
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Develop a strategy for growth
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Plan your exit route strategy - do it now - don't put it off - it can take from two to five years to
execute a successful exit
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Listen to experience - your chances of success will be enhanced by listening and learning from the
successes and failures of others
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Consolidate your Board level team - you might want to consider adding a non-executive director
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Overhaul your management team - make sure they can handle the projected growth
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Ensure proper and adequate knowledge management systems are in place and functioning as planned
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Ensure IP is protected and advice is taken regularly
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Prepare detailed and independently validated 3-year plans, budgets and cash-flow forecasts - challenge
every assumption
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Ensure everybody on the Board and at management team level buys into and has ownership of the plans for the
future
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Wherever practical - involve your staff in discussions, they may know more than you realise
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Devise a progress review procedure with your Board, the management team, staff and the work force and stick
to it
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Make sure robust financial controls and monthly financial reporting structures are in place and working,
before you start to expand
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Action your plans...
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Do what you said you would do - it's the best way to gain respect
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Lead and communicate effectively at all levels - it's crucially important
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Carry your financial backers private or corporate with you, keep them regularly and accurately informed
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If something goes wrong communicate freely with your Board, your teams and
your financial backers, don't hide it, then everybody can learn from it
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If the process for growth works well, go through it again and aim higher next
time
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With your Board and management team's agreement, do experiment - try something new!
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If something does not work, for whatever reason, stop while you are in control and understand what went
wrong and be sure to learn from mistakes
NSConsulting looks forward to working with you to develop your business - contact us today!
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