There is a business owner with a nice little business doing about $3 million in sales. It is profitable, but only just. It pays a reasonable salary, although not what the owner should be making given their commitment of time and investment. They are the proud creator and owner of a proprietary product that could have a big impact on the region, country and possibly the world. Your business input is needed; few people know what to do in a situation like this.
Classic Challenges
The company spends very little on marketing or advertising. It has a modest, outdated website that is little more than an Internet brochure. The management team is stretched to the limit, working long hours just to get the work done. Time and money is needed for R&D, then when it takes off, they’ll need to be ready for the onslaught of orders. That means more staff, more equipment, more facilities, better infrastructure, new software, hardware and more, because the potential is there. The opportunity is right. The market wants what the company has. Done well, this could expand their business ten-fold and beyond. With about five years left before the owner retires, this would be a terrific legacy they could be proud to sell.
What Would You Do?
We’d like to ask for your business input. Here are some questions that would really help the owner if they had the answers:
- How do they increase their own capacity to focus on the big picture versus day-to-day activities? They are already working too many hours.
- How do they free up time for the management team to do the same without hiring prematurely and burning through cash?
- How does the company finance R&D, marketing, new IT, new equipment, new employees and expansion?
- What does the leadership need to give up in order to expand?
- What government resources exist to help?
This company’s problem isn’t that unique. It’s common among cash-strapped, small and medium-sized businesses that have potential, but have reached a ceiling in their ability to expand and take their business through a substantial growth plan. Please share your insights using this link, or via comments on social media, as well as recommendations so they can help themself, their employees, their customers and possibly the rest of us. All opinions are welcome. The owner needs our help. And maybe in sharing your ideas you’ll receive some back yourself.