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Issue No. 29 - June/July 2006
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Business Planning
Question: My manufacturing business has been operating for 25 years and I currently employ 20 people. While the business is still profitable and I have build my own asset base up there has been a slow slide in our sales and margins over the last 5/6 years. My concern is that unless I do something soon the business may reach a point where it's non-viable. In essence I feel that all of us have become too comfortable over the years and it seems every part of the business needs attention. Where do I start?
Response by Paul Smith – Carnegie Management Group
As the owner of this successful business the first issue you should address is your own goals. Where do you want to be personally and professionally in five to 10 years' time? Is retirement looming as an option, for instance? What do you want to achieve?
Having reviewed your goals it is time to consider, develop and implement appropriate strategies to get you there. Issues to reflect on (carefully) include:
Transition to longer term sale, or succession to a family or key staff member
What is the age profile of your workforce and what are their medium/long term intentions? Are they heading for retirement, looking to grow further in the business, marking time?
Whether you opt to sell or renew long-term growth the business needs to be positioned and made ready - particularly if you are in the manufacturing sector. Undertake a detailed SWOT analysis to identify the core focus for future endeavour consistent with where you want to be.
Survey major customers to gather their thoughts on you, your team and the business.
Identify the key staff and the clients you want to retain
Consider innovative cost containment and revenue growth strategies, to...
