Keep Your Eye on the Prize, Especially During Busy Times
We've recently been working with a prospective client who was seeking to leverage their brand, experience, and the current hot market with a strategic consolidation play, or roll up. They were looking to merge several similar businesses. But while on the one hand that hot market was a blessing, it also forced their focus on the work at hand, blurring long-term opportunities.
This scenario isn't an isolated occurrence; it happens all too often. After a little reflection, we find at least one key lesson to learn: keep the big prize in sight.
The rush of day-to-day operations-the very circumstance that could fuel growth-can prevent businesses from effectively pursuing a consolidation play. In fact business could be so strong that the decision is made, primarily out of necessity, to just handle the rush and postpone any plans for expansion. Unfortunately, postponing can lead to cancellation of a plan that could have won the owner an even bigger prize.
Now don't get us wrong; we understand how overwhelming the press of the day-to-day can be for business owners and their team. It's sort of a given that the existing staff aren't likely to be able to juggle a consolidation play while also handling the daily rush. That's why we propose another option.
In these instances, when business is thriving and it's hard to keep up, we recommend that a portion of the profits being generated are invested in the addition of development professionals. Helping companies to seize growth opportunities is what they do. These folks should carry requisite expertise and experience and they can then be solely entrusted with the pursuit of the consolidation play, while the existing team can focus on managing the daily rush of business.
Instead of an already busy team staring down a seeming mountain of extra work and calculating just how steep the learning curve will be, qualified development professionals can shoulder the task. They'll build out the spreadsheets and model supporting the consolidation play, they'll work on potential capital sourcing, and they'll proactively reach out to identify acquisition opportunities. This invaluable team can then handle requisite due diligence, complete transactions, integrate the newly acquired businesses, and then pursue additional acquisition opportunities. All the while, day-to-day operations aren't neglected and in fact that hot market is fueling even bigger wins.
And this brings up the vital point that opportunities for growth shouldn't be relegated to an either/or decision. Instead of limiting success and sacrificing opportunity on the altar of day-to-day operations, efficiently using available resources can enable two parallel paths: one for handling established business, and one for continued growth.
Seeing past the everyday is the first step to winning the big prize. And as always, the team at Calkins Law Firm is ready and willing to help you get started. We're known for thinking beyond the traditional, so we have plenty of experience to draw from. Get in touch to learn how we can help set your company up for success and take advantage of busy times.