36. Accelerating the Machine: Expansion and Exit Strategies

As growth occurs, you will be adding more money to your company, spend less time on the details of the business, and begin to evaluate the future of the company.One focus is on increasing sales, and this can be done in the following ways:Increase the number of new customers or clients. Increase the number of repeat customers. Increase multiple transactions. Selling offshoots or “flanker products” which can be sold alongside the mainstay products is a good way to increase sales. Team market through joint ventures. Find a good compatible partner with whom you can work.

Expand channels of distribution (if you have not yet managed to expand to the internet, for instance, do so) to expand your potential market. Increase marketing dollars to build marketing strategies. While word of mouth and referrals are excellent for building a starting base, you cannot rely on them forever. Increase infrastructure. The organization, sales machine and workforce all need to be in place so that increased demand can be supported. Seed development and support execution. Put resources into R&D to keep those good ideas coming!

This situation is complicated by the fact that many venture capitalists will refuse to sign an NDA before looking at a business plan, lest it put them in the untenable position of looking at two independently developed look-alike business plans, both claiming originality. In such situations one may need to develop two versions of the business plan: a stripped down plan that can be used to develop a relationship and a detail plan that is only shown when investors have sufficient interest and trust to sign an NDA.

At every point in the brainstorming process you want to make sure you stick to your personal values. You need to have a vision for your future to stay on track to reach your goals – something to help you overcome the tedium of the day-to-day running of the company. There are several factors you might want to consider while thinking of your business:The market opportunity. Consider what’s missing in your town or community. Note, however, that these will be good.