Four Value-Adding Opportunities for the Growth Phrase
This week I’m looking at value adding opportunities for the growth phase of a company life cycle. This could also be applied to a company’s product or service life cycle. This information is provided to assist sales people deal with their customer’s situations and internal managers looking for ways to improve the performance of their company.
So today, we are looking at the Growth Phrase for a company or product. This is exciting times for any company to experience. Things are moving fast, sales are increasing, accounts receivables are growing and cash is once again in short supply. So here are four specific value adding opportunities for sales people and managers to use during the growth phrase.
1. Find a way to standardize volume operations. Standardize systems will optimize both expenses and investments thus lowering the cost of doing business during this phrase. Increasing standard operations and practices lowers the need for custom solutions or even allows the appearance of custom solutions using standard systems or solutions. Again the goal is to lower cash requirements and increase turnover rates.
2. Build systems and processes that ensure order-fulfillment and shipments. During a growth phrase order fulfillment is very important for continued orders and referrals. Timely shipments keep the customers very satisfied and coming back – building more business.
3. Ensure the building of systems and processes that organize billing and the collection of cash. The need for accurate billing has been a major customer requirement for years – yet, some organizations do not invest in systems or processes that ensure this accuracy. Also, the monitoring and collection of cash is another area of major important during the growth cycle. Cash is limited and needed at the same time, so more efficient and effective systems/processes are a high priority – thus an opportunity.
4. Examining the break-even points during this phrase is a very important management requirement. Studying the parts of the break-even equation and finding ways to improve it faster is a key component to achieving success. The ability to examine the fixed and variable costs effectively can raise or lower the break-even point. The greatest need is to lower the break-even point so that profitability is a given for the company.
These are the four areas that we have worked on for years. However, I welcome input to additional factors or opportunities during the growth phrase. So if you have experienced a critical factor during a growth phrase, please add it to our comments below. Thanks and check in Wednesday for the third phrase – Maturity.
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