Situation: A CEO wants to set up her company for long-term growth in value. The business has favorable margins relative to competitors and high cash flow. It is currently single-site but has a good model that could be expanded to multiple sites. How do you position a company for value and growth?
Advice from the CEOs:
- Paint a picture of growth and cash flow. Use this picture to inspire both the home site and remote sites as they are developed.
- Develop and demonstrate a Growth Model. It is important to demonstrate the success of the model so that it can be replicated in remote locations.
- Get multiple sites up and running as proof of a profitable growth model.
- As the company moves to a multi-site model, assure that each site manager has a financial interest in the success of the site. Develop a compensation system that rewards the manager for both growth and profitability. Develop a complimentary system that rewards key site personnel.
- Develop additional products and accompanying services. These can be sold to current customers as well as new customers at the home and remote sites to boost growth.
- As the model grows use the improved cash flow to buy other companies that are complimentary or expand the capacity of the existing company.
[like]
The post How Do You Position a Company for Value and Growth? Six Points appeared first on Ceo2Ceos.com.
