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Feb 18Frank Dane

Leveraging Economies of Scale to Grow Your Emerging Business

Feb 18Frank Dane
Graph With Stacks Of Coins

Planning for and Managing Second Decade Business Growth

As the owners or senior managers of an emerging business, you worked hard to:

  1. Attract dedicated and loyal people who did whatever was necessary to help the company grow
  2. Solidify your products and services to create a loyal customer base
  3. Create the organizational structure systems to support the growth

Now comes the hard part, and it’s a bit like raising teenagers. Just as raising teenagers is more difficult than wiping noses and getting them ready for school on time, taking a business into its next stage of growth is far more complex. Emerging companies must now leverage economies of scale across all key areas of their business including:

  1. Newer employees have less of a vested interest in the success of the company. Your second or third wave of employees may not be quite as dedicated or committed to your business as the first group, who gladly worked extra hours, went the extra mile and would literally do whatever was needed to ensure future success. Take a tip from Jeremy Hitchcock, and step up your efforts to retain these employees with innovative recognition and incentive programs. He says, “Figuring out how to keep great people is a talent management issue,” and he suggests that companies stop thinking about “Human Resource Management” and shift to creating “Talent Management Teams.”[1]
  2. Increased competition from larger companies that now see you as more of a threat. You are now on their radar screen, and they will launch frontal assaults designed to win back customers you may have taken from them. It is time to batten down the hatches and create customer loyalty programs for your existing customers. According to Donna Fenn in her 2010 Inc. article, “Acquiring new customers is … five to 10 times the cost of retaining an existing one.”[2]
  3. Ever-expanding policies and procedures, rules of engagement with larger customers, and more stringent regulatory restrictions lead to more and more complexity. In his October 2014 Inc. article, Scott Liebs states, “It’s a paradox that confronts every successful company. Growth creates complexity, which then threatens growth.” [3]

Consider a B2B CFO® Partner as Your Complexity Guide

Every B2B CFO® professional has a minimum of 20 years of experience in the real world of small- to medium-sized business. They are not retired executives. They are not educators or academics. They are business savvy and understand what it means to fight in the trenches, yet they have the skills and tools to view your business at a strategic level.

B2B CFO® Partners understand the complexities of emerging businesses and have the tools and experience to help you chart a course for long-term success.

photo credit: Graph With Stacks Of Coins via photopin (license)

B2B CFO®

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