Small and Steadfast

Rapid growth is often the ultimate goal that businesses aim for, yet, when it arrives the sudden surge can cause a company to struggle or even fail. When a business experiences suddenly success, the entrepreneur is typically operating with limited resources including a lack of capital, lack of management skills, lack of information about what may be propelling the recent growth, poor procedures, lack of a go-forward plan, lack of experience with change management and larger operations, not being able to identify risks, and – nothing new here – lack of time to deal with new issues.


Dramatic increases in sales can also come with dramatic increases in expenditures, bad debt, whittling of profit margin and other distasteful characteristics. Simply put, growth without profit leads to cash shortages and unpaid bills.

To avoid the perils of expansion, your objective should be to find a certain market niche and devise a business plan that propels your business ahead with a healthy and steady growth. Focus on:

• maintaining an appropriate profit margin

• analyzing key performance indicators

• building assets

• controlling debt

• managing cash flow

• standardizing operations

• developing leadership skills

Over-expansion is a leading cause of business failure; be proud of being small for now. Beware repressing growth though, since that means you’re missing opportunities. Establishing high growth as your only measure of success can lead to reckless decisions. Instead, develop a definition of success that includes steadfastness and lifestyle factors. Then, let your success lead you, rather than you forcing it.

Strategic Allicances Create Early Growth

A “strategic alliance” is an agreement between two or more companies to conduct a certain aspect of business in a mutually beneficial way. Successful strategic alliances can help small businesses to increase the size of their product/service offering, extend their market reach, improve productivity or create that crucial competitive advantage. Ultimately, this means opportunity for faster-paced launch and earlier growth, without a burden of added capital or operating costs.

Like any business model, a strategic alliance needs research and careful planning. A successful alliance needs to fit your own business profile. Here are some key considerations:

· Create a list of desired partner attributes
· Source out potential partners with a compatible vision and similar goals
· Choose a partner who is focused and well-established
· Choose a partner with a compatible brand/reputation
· If competing in the same market, consider the affect on your market position
· Consider future directions and whether they merge or diverge
· Determine the timing – one time project or long-term relationship?
· Create a contract, including precise expectations you have established together and clear terms of payment
· Create a systematic communication method
· Create a clear exit strategy
· Put everything in writing

Finally, not only will you need to seek out a desirable partner, but you need to be a desirable partner to someone else. This has to be “win-win”, not “how can you help me?” Your own business will need to be in tip top shape with an up-to-date business plan, established procedures, a good track record with clients, professional branding and reputation, and a robust marketing strategy. If these foundations are in place, you may find other companies are seeking you out as a strategic partner. The Brampton Enterprise Centre has a plethora of resources to support you as you prepare to develop a strategic alliance.

Strategic Alliances Create Early Growth

A “strategic alliance” is an agreement between two or more companies to conduct a certain aspect of business in a mutually beneficial way. Successful strategic alliances can help small businesses to increase the size of their product/service offering, extend their market reach, improve productivity or create that crucial competitive advantage. Ultimately, this means opportunity for faster-paced launch and earlier growth, without a burden of added capital or operating costs.

Like any business model, a strategic alliance needs research and careful planning. A successful alliance needs to fit your own business profile. Here are some key considerations:

· Create a list of desired partner attributes
· Source out potential partners with a compatible vision and similar goals
· Choose a partner who is focused and well-established
· Choose a partner with a compatible brand/reputation
· If competing in the same market, consider the affect on your market position
· Consider future directions and whether they merge or diverge
· Determine the timing – one time project or long-term relationship?
· Create a contract, including precise expectations you have established together
and clear terms of payment
· Create a systematic communication method
· Create a clear exit strategy
· Put everything in writing

Finally, not only will you need to seek out a desirable partner, but you need to be a desirable partner to someone else. This has to be “win-win”, not “how can you help me?” Your own business will need to be in tip top shape with an up-to-date business plan, established procedures, a good track record with clients, professional branding and reputation, and a robust marketing strategy. If these foundations are in place, you may find other companies are seeking you out as a strategic partner. The Brampton Enterprise Centre has a plethora of resources to support you as you prepare to develop a strategic alliance. Call us at 905-874-2650 or visit www.brampton-business.com