Building a Business for
Effective Growth &
Increased Value
Presented by
Warren J. Rutherford
The Executive Suite
Key Points
 Business Planning Elements
 Planning for Value
 Growth Strategies
 Target Marketing
 Financial Management...
Business Plan Elements
   Executive Summary –
     Mission,   Objectives, Keys to Success
   Company Summary –
     Ow...
Business Plan Elements
   Strategy and Implementation –
     Marketing  Strategy, Sales Strategy, Strategic
      Allian...
The Successful Business
Plan…
    A Written document
    Describes your business
    How it will be successful
    Out...
Planning for Value
   Align goals & objectives to specific value set
   Values and guiding principles such as –
     Hu...
Growth Strategies
 Align functions to meet customer and
  employee requirements.
 Leverage information technology for
  ...
Target Marketing
   Customer Retention –
     Who   are your Customers?
   Cross-Sell/Up-Sell –
     What   do your Cu...
Who Are Your Customers?
 Do you know where they live?
 Do you know how much they spend?
 Have you identified what they ...
What Do Your Customers Like?
   How can you offer the right product to the
    right customer, at the right time?
     B...
Financial Management
   Budget, then budget some more – tie to Plan.
     Revenues,   COGS, Other Expenses.
   Budget a...
Human Resource Development
   Who does what, when, for what purpose?
    And how well?
     Job  descriptions, pay rates...
Transition Strategies – When to
Begin an Exit Strategy
   When you are ready to retire?
   When you decide to pursue ano...
Why Plan to Exit When I Am
Just Beginning?
   Establish a clear set of business goals.
   Create the mechanism to monito...
Transition & Succession Plan
    Choosing the successor.
    Commitment to family and employees of the
     business.
 ...
Transition & Succession Plan
   Owner establishes sound financial retirement
    plan and outside activities to enjoy.
 ...
Thank you!
For more information -

Warren J. Rutherford
Owner
The Executive Suite
129 Airport Road
Hyannis, MA 02601
wjr@t...
Upcoming SlideShare
Loading in...5
×

Building A Business For Growth & Value

177

Published on

Business plan strategies for success - short notes version

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
177
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Building A Business For Growth & Value"

  1. 1. Building a Business for Effective Growth & Increased Value Presented by Warren J. Rutherford The Executive Suite
  2. 2. Key Points  Business Planning Elements  Planning for Value  Growth Strategies  Target Marketing  Financial Management  Human Resource Development  Transition Strategies © theexecutivesuite.com 2009 2
  3. 3. Business Plan Elements  Executive Summary –  Mission, Objectives, Keys to Success  Company Summary –  Ownership, Products/Services, Locations/Facilities  Products and Services –  Description, Competitive Comparison, Sales Literature, Sourcing, Technology, Future Products & Services  Market Analysis –  Market Segmentation, Industry Analysis, Market Analysis © theexecutivesuite.com 2009 3
  4. 4. Business Plan Elements  Strategy and Implementation –  Marketing Strategy, Sales Strategy, Strategic Alliances, Service & Support, Milestones  Management –  Organizational Structure, Management Team, Management Gaps, Personnel Plan, Other  Financial Plan –  Assumptions, Financial Indicators, Break-even analysis, Projected P&L, Cash Flow, and Balance Sheet, Business Ratios. © theexecutivesuite.com 2009 4
  5. 5. The Successful Business Plan…  A Written document  Describes your business  How it will be successful  Outlines the purposes and goals of the business  Illustrates how the goals will be realized  Will include a detailed marketing strategy  Contains formal profit & loss projection and cash flow projections designed to show that if business develops as expected, it will be profitable and will generate positive cash flow. © theexecutivesuite.com 2009 5
  6. 6. Planning for Value  Align goals & objectives to specific value set  Values and guiding principles such as –  Humility, Loyalty, Trust  Respect for self, others, the competition  Caring, Responsive, Adaptable  Integrity, Credibility  Industrious, Hardworking, Fulfills Obligations  Socially Conscious, Legally compliant with laws © theexecutivesuite.com 2009 6
  7. 7. Growth Strategies  Align functions to meet customer and employee requirements.  Leverage information technology for efficiency in customer service, production, sales & marketing.  Establish goals that allow performance incentives –align orientation to employees – team-based, participative, empowered. © theexecutivesuite.com 2009 7
  8. 8. Target Marketing  Customer Retention –  Who are your Customers?  Cross-Sell/Up-Sell –  What do your Customers like?  Increase Revenue –  Where can you find more Customers?  Target Marketing/Reduce Costs –  How can you best advertise to potential Customers? © theexecutivesuite.com 2009 8
  9. 9. Who Are Your Customers?  Do you know where they live?  Do you know how much they spend?  Have you identified what they purchase – and do not purchase?  Are there ways you can service them better?  Have you identified the purchasing behaviors in your selling or “trade” area? © theexecutivesuite.com 2009 9
  10. 10. What Do Your Customers Like?  How can you offer the right product to the right customer, at the right time?  Based on your location, have you identified the likelihood of what any customer will buy?  Have you developed a mailing list for customers most likely to buy products you are promoting?  Have you developed a model that identifies cross-sell/up-sell opportunities at the point of sale? © theexecutivesuite.com 2009 10
  11. 11. Financial Management  Budget, then budget some more – tie to Plan.  Revenues, COGS, Other Expenses.  Budget analysis, break-even analysis.  Monthly P & L, Balance Sheet.  Regular Cash-Flow Analysis.  Aggressive AR process – professional  Regular, steady AP process – think credit rating © theexecutivesuite.com 2009 11
  12. 12. Human Resource Development  Who does what, when, for what purpose? And how well?  Job descriptions, pay rates, performance- based pay, performance appraisals.  Employee handbooks – rules of the road.  Benefits – medical, leave, retirement.  Tie to value and guiding principles. © theexecutivesuite.com 2009 12
  13. 13. Transition Strategies – When to Begin an Exit Strategy  When you are ready to retire?  When you decide to pursue another endeavor?  When your child is ready to take control?  The day one starts a business is the best and most appropriate time to implement an exit strategy.  WHY?  You start out focused, tracking your personal goals & business objectives. © theexecutivesuite.com 2009 13
  14. 14. Why Plan to Exit When I Am Just Beginning?  Establish a clear set of business goals.  Create the mechanism to monitor these goals.  Aim the strategy at building strategic value.  Value? Where did I hear that before?  Building strategic value contributes to economic wealth for the Entrepreneur.  Strategic value derived from value drivers.  Strategic value transferable to a strategic buyer commands an acquisition premium. © theexecutivesuite.com 2009 14
  15. 15. Transition & Succession Plan  Choosing the successor.  Commitment to family and employees of the business.  Using strategic business plan, identify specific company objectives and goals for successor.  Provide family and business with set of goals to strive for.  Position family members in functions with complimentary skill sets to successor.  Leadership Transfer – Successor runs business more, owner runs business less. © theexecutivesuite.com 2009 15
  16. 16. Transition & Succession Plan  Owner establishes sound financial retirement plan and outside activities to enjoy.  Family discussion on leadership skills needed, entry and exit conditions, decision-making policies, and conflict resolution procedures.  Successor works to practice sound management.  Ensure employee benefit plans in place to keep key employees.  Financing owner transition – options limited in family-held company. © theexecutivesuite.com 2009 16
  17. 17. Thank you! For more information - Warren J. Rutherford Owner The Executive Suite 129 Airport Road Hyannis, MA 02601 wjr@theexecutivesuite.com www.theexecutivesuite.com 508-778-7700 © theexecutivesuite.com 2009 17

×