5ThingstoPrepareYourCompanyForGrowth

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Matt Peterson2-Time CEO - Growth Strategy Advisor

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Embarkingonagrowthinitiativeinyourcompanybeforeawellvettedstrategyandplanisinplaceisalittleliketakinganengagementringonafirstdate.

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5ThingstoPrepareYourCompanyForGrowth

Preparing for Growth

1. Determine Why2. Build Financial Model3. Product/Service Upgrade4. Right People Onboard5. Scalable Process

• What is your growth objective?• Bigger market share?• Compete with the “big boys”• Improve valuation?• Increase profits?• Just to get bigger? (not recommended)

• Important considerations• What impact will growth have on

margins/profitability?• Buyoff from investors/board?• Growth should be accompanied by healthy

contribution margins to be sustainable• Fast growth can be dizzying

Why Do You Want To Grow?

• Get an experienced CFO to build the financial model• Prove out the model before committing resources• Growth requires capital. How will you finance it?

• Current investors, New investors, Angel, Seed, LOC, VC’s?

• Secure financing upfront• What is your planned growth trajectory? What is the cost?

How fast will impact how much $$$ needed• Share the model with the appropriate stakeholders - get

everyone’s buyoff• Be prepared for questions, justifications, and

modifications• Space considerations – Will you need more room?

Build a Financial Growth ModelPreparing for Growth

1. Determine Why2. Build Financial Model3. Product/Service Upgrade4. Right People Onboard5. Scalable Process

• Does your product need a facelift or overhaul?• Do you understand your customer and their needs?• Determine your core competencies. Who you ARE vs.

who you ARE NOT• Is your product innovative?• How big is the addressable market?• How well do you know your competitors?• Update your competitor analysis – once a year• Do you have a current product/service 12-month

roadmap?• Pricing evaluation: are you priced right?

Product/Service - Need an Upgrade?

Preparing for Growth

1. Determine Why2. Build Financial Model3. Product/Service Upgrade4. Right People Onboard5. Scalable Process

• Is the CEO leading the charge? If not, it will fail• Key people: CEO, Board, Investors, CFO, COO,

VP/Sales, VP/Marketing, VP/CX• Do you have the right organizational structure?• Different skill sets required at different company growth

stages – Who do you need to hire?• What skills will you need from outside of your team?• Work out sales projections with the sales leader• Sales & Marketing leadership in alignment?• Are your comp/incentive programs aligned with the

company growth objectives?• Measure results with real time analytics – Executive

dashboards

Do You Have the Right People?Preparing for Growth

1. Determine Why2. Build Financial Model3. Product/Service Upgrade4. Right People Onboard5. Scalable Process

• Timing: is it the right time/season to scale?• Evaluate your lead gen process. You will need more leads!

• SQL’s vs. MQL’s• Know your cost per lead• Know your lead conversion rate• Be careful of run away costs in the name of lead gen

• Carefully evaluate the sales team/leadership/sales operations• Sales pipeline management improvements• Can you handle the influx of new customers? What is your CX

model?• Right technologies in place: CRM, Marketing Automation, CX

platform, data dashboards, etc.

Is Your Process Scalable?

Preparing for Growth

1. Determine Why2. Build Financial Model3. Product/Service Upgrade4. Right People Onboard5. Scalable Process

• What are you trying to do with the company?• Lifestyle/family business?• Get bought by a competitor or PE firm?• Go public?

• Seek to build up the equity value before you seek a buyer

• When to sell? If you haven't thought about this, you should

• Seek out an experienced M&A firm (not a business broker) long before your anticipated sale

What is Your Exit Strategy?

5.99 Preparing for Growth

1. Determine Why2. Build Financial Model3. Product/Service Upgrade4. Right People Onboard5. Scalable Process6. Exit Strategy

TakeTimeAlongtheWay

• Growingisnevereasy– knowthisgoingin• Growthisbothajourneyandadestination• Conductregularreviewsonhowyouaredoing– beflexibletochanges• Determinehowyouwillmeasureandacknowledgesuccess• Celebratemilestonevictories• Acknowledgeyourstaffbothprivatelyandpublicly• Sharethespoilswiththepeoplethatmakeyourcompanyrun• Taketimeawayfromtheoffice– rechargeyourbatteries• Encourageyourstafftodothesame

Thank you for joining us!

Matt Peterson2-Time CEO - Growth Strategy Advisor

mpeterson@advancedcfo.com801.616.1585