Rock LaManna10.05.22
In hockey, when you have a season where the team clicks and the players are eager, it’s the perfect time to grow. It’s the same in business. When everything is going right, it’s tempting to pause and enjoy. But you can’t. You have to seize the moment. Why? Because your competitors may be enjoying the same success, and you can’t let them gain the psychological advantage. You can’t let them be first to the puck. This matters.
Think about it. Your salesperson calls on a prospect who mentions your competitor and all their activity. A top salesperson could sell against that and not be derailed. An average salesperson will be deflated and think, “Why bother?” Even the best salespeople have days where they say, “I just don’t have the energy to defend our business.”
How can we capture those moments when growth is possible? How do we know when we’re ready? For growth to happen in today’s complex business climate, owners in the graphic arts industry need to have a realistic view of their current business value, financial situation, and the strengths and weaknesses of their market position. Yes, weaknesses.
Let’s dig into this, as it is an area many graphic arts businesses struggle with.
Areas where graphic arts companies typically need improvement are: management; marketing and sales; operations; customer service and support; quality, speed, and turnaround; technology, employee training and retention; cost control; strategic vendor relations, and the bottom line.
At LaManna Consulting Group, one tool we use to assess readiness for business growth is our proprietary Road Map Assessment (RMA). The RMA is a dose of reality about the value and market positioning of your business, with a road map to help you prioritize and take action.
When we take our clients through the assessment process, we always uncover issues that require attention. No business is perfect. Taking proactive steps to improve makes the business stronger from the inside.
We pinpoint areas that we can optimize right away because, again, this is great for employee morale. Your team can see that we are not only working on something specific, but also we are going to make progress and succeed. Breaking these initiatives into frequent, visible successes activates employees’ desire to help you win.
When everyone can see how growth is possible – and everyone is moving together toward the goal – it’s a powerful experience.
When you ask hockey players to recount a time when they were proud of their team or felt like anything was possible, they remember moments when a play was coming together and they were in sync with their teammates. This is how it is for your team as well. When they are part of a successful team, it’s a powerful motivator.
I will even ask, “What is a fun and memorable way to celebrate as a team?” I can tell a lot about owners by the way they describe that future moment, when the plan has come together, and everyone has succeeded. How do you picture that future moment of success?
As you picture that future moment, look around. How did growth happen for your company? For example, Company A may grow through acquisitions. Company B may grow through sales and revenue. Company C may grow by expanding territory or adding a service.
When we discuss this with owners, they laugh and say, “D, all of the above.” Sure, explosive and astronomical growth would be incredible, but it’s not how most graphic arts businesses grow.
Even the most prominent companies have proven growth paths that suit their style, financial goals and timeline. I can hear the wheels turning in your head. You’re wondering: “How does my company fit into this? Is it truly possible to grow in the coming year?” The answer is yes.
I know this because I ran a successful converting business and grew it to the point of selling it. The temptation to make all the decisions, control all the variables, and manage by high command is why so many business owners struggle and fail. I was lucky. I had my father and family next to me, and I often relied on outside advisors, a family coach, and other specialists to provide insight and guidance. Why limit yourself when there are experts who have a wider field of vision about what others have done in your situation and what works.
Winning takes something extra, and often that extra thing is knowing what’s possible.
Trust me when I say your employees will be thrilled you want to grow. No one will say, “Oh no, this means more work for us.” I’ll repeat it. Your team wants to win. They want you to set them up so they can succeed. They’re ready.
Here are suggestions to get you on the road to growth in the coming year:
A note, if you are considering an executive coach. Choose someone with industry experience, a proven ability to grow companies, and the right temperament to help owners win. Coaches who are “yes men” and enablers do you no favors and hold you back from your potential.
A final thought. Sometimes the older players on a team like to skate around the rink alone, after everyone’s gone home, and think about the winning plays and the glory days. Many business owners are like that, too. Content to skate in circles, they’re happy with the status quo.
For those with fire and ice in their veins and the desire to win, the time is now.
There are really two options for funding/paying for growth. The growth can be self-funding (provided by the company’s cash flow), or it can come from an external source. Examples of external sources are bank debt, VC funding, and equity investments from the current owners or other investors.
Most owners make the mistake of not maximizing self-funding options and choose some kind of external source – banking debt being the most common. The key for owners is to maximize cash flow by looking at ways to improve profits and reduce capital tied up with working capital.
Owners who are successful with this develop an ability to look at their company from the outside inward.
Being able to look at the company like a coach on the sideline versus a player on the field gives a difference in perspective and allows you to see different opportunities. This is a difficult task, and sometimes you need expert help. We will cover more about how owners can fund growth next time. Stay tuned.
Rock LaManna is The Deal Flow Guy. He helps buyers and investors find businesses that are ready for acquisition or transition. On the sell side, he helps owners improve their businesses, increase value, and position strategically in anticipation of sale, exit or succession. Sign up for his newsletter at TheDealFlowGuy.com and start the process.
Your people care if you’re winning
As owners, it’s almost inconsequential if a competitor installs a key piece of equipment before we do or acquires a complementary type of business we’re considering. We have the master plan in our heads, and we know business is a game of moving forward. But to our employees, losing out on these advantages can be devastating. They can’t see inside our heads; they don’t know the big picture. They only see the part that affects them.Think about it. Your salesperson calls on a prospect who mentions your competitor and all their activity. A top salesperson could sell against that and not be derailed. An average salesperson will be deflated and think, “Why bother?” Even the best salespeople have days where they say, “I just don’t have the energy to defend our business.”
Seizing the moment, gauging readiness
When you are the first to the puck, and you are growing visibly and successfully, your people – throughout the organization – are excited. They’re rooting for the business. They have something fresh to talk about with each other and with customers. Growing the business when you “have the moment” is important for your team.How can we capture those moments when growth is possible? How do we know when we’re ready? For growth to happen in today’s complex business climate, owners in the graphic arts industry need to have a realistic view of their current business value, financial situation, and the strengths and weaknesses of their market position. Yes, weaknesses.
Let’s dig into this, as it is an area many graphic arts businesses struggle with.
Getting an honest assessment
If you can’t be honest about the areas that need work, you will be vulnerable as you grow. You must truthfully and objectively address the areas that need work and have a checklist for improvement.Areas where graphic arts companies typically need improvement are: management; marketing and sales; operations; customer service and support; quality, speed, and turnaround; technology, employee training and retention; cost control; strategic vendor relations, and the bottom line.
At LaManna Consulting Group, one tool we use to assess readiness for business growth is our proprietary Road Map Assessment (RMA). The RMA is a dose of reality about the value and market positioning of your business, with a road map to help you prioritize and take action.
When we take our clients through the assessment process, we always uncover issues that require attention. No business is perfect. Taking proactive steps to improve makes the business stronger from the inside.
We pinpoint areas that we can optimize right away because, again, this is great for employee morale. Your team can see that we are not only working on something specific, but also we are going to make progress and succeed. Breaking these initiatives into frequent, visible successes activates employees’ desire to help you win.
When everyone can see how growth is possible – and everyone is moving together toward the goal – it’s a powerful experience.
When you ask hockey players to recount a time when they were proud of their team or felt like anything was possible, they remember moments when a play was coming together and they were in sync with their teammates. This is how it is for your team as well. When they are part of a successful team, it’s a powerful motivator.
Scoring opportunities
For a plan to come together, you must first have a plan. When we coach owners, we walk them through an exercise. What will the business look like in a year? What were our wins? Which opportunities did we leverage? What’s the new financial picture?I will even ask, “What is a fun and memorable way to celebrate as a team?” I can tell a lot about owners by the way they describe that future moment, when the plan has come together, and everyone has succeeded. How do you picture that future moment of success?
As you picture that future moment, look around. How did growth happen for your company? For example, Company A may grow through acquisitions. Company B may grow through sales and revenue. Company C may grow by expanding territory or adding a service.
When we discuss this with owners, they laugh and say, “D, all of the above.” Sure, explosive and astronomical growth would be incredible, but it’s not how most graphic arts businesses grow.
Even the most prominent companies have proven growth paths that suit their style, financial goals and timeline. I can hear the wheels turning in your head. You’re wondering: “How does my company fit into this? Is it truly possible to grow in the coming year?” The answer is yes.
Putting your growth plan in motion
At the core of your growth plan, you’ll need to make confident decisions. In large companies, it takes a team of experienced professionals who have repeated success to inform their decision-making. So why do so many small to mid-sized companies struggle to grow? It’s because the owner tries to do it all alone.I know this because I ran a successful converting business and grew it to the point of selling it. The temptation to make all the decisions, control all the variables, and manage by high command is why so many business owners struggle and fail. I was lucky. I had my father and family next to me, and I often relied on outside advisors, a family coach, and other specialists to provide insight and guidance. Why limit yourself when there are experts who have a wider field of vision about what others have done in your situation and what works.
Winning takes something extra, and often that extra thing is knowing what’s possible.
Getting to the puck first
Whatever you’re thinking, your competitors are already trying it, testing it and rolling it out. I’m not telling you this to make you give up. I’m telling you this because time’s-a-wasting. To grow in the coming year means we start now.Trust me when I say your employees will be thrilled you want to grow. No one will say, “Oh no, this means more work for us.” I’ll repeat it. Your team wants to win. They want you to set them up so they can succeed. They’re ready.
Here are suggestions to get you on the road to growth in the coming year:
- Review your Trailing Twelve Months report, which we’ve talked about in this column.
- Order a Brokers’ Opinion of Value, ideally with our RMA.
- Think about what ideal growth would look like for your type of company.
- Get your organizational chart down on paper so we can look for areas of weakness and who we can recruit.
- Have a professional marketing audit done so you’re not trying to sell with one hand tied behind your back.
- Meet with your sales manager and get an honest assessment of areas where you are not on par with your competition.
- Start thinking about your ideal role in the company and where you can delegate.
A note, if you are considering an executive coach. Choose someone with industry experience, a proven ability to grow companies, and the right temperament to help owners win. Coaches who are “yes men” and enablers do you no favors and hold you back from your potential.
A final thought. Sometimes the older players on a team like to skate around the rink alone, after everyone’s gone home, and think about the winning plays and the glory days. Many business owners are like that, too. Content to skate in circles, they’re happy with the status quo.
For those with fire and ice in their veins and the desire to win, the time is now.
There are really two options for funding/paying for growth. The growth can be self-funding (provided by the company’s cash flow), or it can come from an external source. Examples of external sources are bank debt, VC funding, and equity investments from the current owners or other investors.
Most owners make the mistake of not maximizing self-funding options and choose some kind of external source – banking debt being the most common. The key for owners is to maximize cash flow by looking at ways to improve profits and reduce capital tied up with working capital.
Owners who are successful with this develop an ability to look at their company from the outside inward.
Being able to look at the company like a coach on the sideline versus a player on the field gives a difference in perspective and allows you to see different opportunities. This is a difficult task, and sometimes you need expert help. We will cover more about how owners can fund growth next time. Stay tuned.
Rock LaManna is The Deal Flow Guy. He helps buyers and investors find businesses that are ready for acquisition or transition. On the sell side, he helps owners improve their businesses, increase value, and position strategically in anticipation of sale, exit or succession. Sign up for his newsletter at TheDealFlowGuy.com and start the process.