To reach the goal, one has to plan a map and same goes for the business. Strategic planning of the course of action determines the growth of the business. It creates awareness regarding the strengths and weakness to further work upon. Small, middle or large companies, all need to map a course, stick to it and maintain the company throughout. These also involve business growth strategies, and at times business exit policies also.
Options that companies have to grow their business:
While starting new business, the entrepreneur or the founders aim at something big. It might be to earn some recognition, establish and become a competition for others in the market, or to have one’s own legacy. Some basic ways of business expansion are:
By penetrating, the market nationally or internationally, is one-step closer in developing the business. Reasons behind such decision could be extreme competition in the existing market. Taking the business to a completely new market, checking the demand of the product there might prove to be a successful step.
Increasing the variety of products might succeed in attracting new type of audience. Thus, the greater the choice more the number of customers. This might be well a part of the plan. However, with changing time and innovations, once in every few years a company has to undergo such changes to beat the competition. People want new items and products, which the market has to cater. Those who live up to new demands grow and flourish.
Acquisition – a hope to continue the business:
This strategy involves acquisition of one company by another. To expand a business, it is often better to buy a ready company rather than set the whole thing up. It saves time, and tings begin to move in action. While the acquired company in order to survive and keep the jobs intact finds acquisition, better than shutting down of whole company.
Investing companies, private equities also follow acquisition as the means to continue their business. Since their profession is all about investing in companies, acquire them for few years, get their return and resell it when the right time arrives. Any company with impressive cash flow and remarkable annual income is what investors look for.
Marc Leder , CEO of Sun Capital Partners is also into acquiring companies. Since 1995, his firm has successfully acquired more than 330 companies globally, and from various industries. However, his technique differs from others and perhaps that is what makes him one of the top and reputed investors in United States.
Marc Leder acquires those companies, which struggle, and is in distressed situation. However, he chooses them for the potential its business has to improve if the chance is given. Saving many jobs, providing an opportunity, improving management and leadership of the business is what he does best. Sounds risky, yet he has nearly proved this technique true with many companies that revived with full strength in the market under his guidance.
His own business strategies are hence an example of how planning positively change the course of business.