|
6. |
Expansion
– the company has
product revenues, expands its production and diversifies into new areas |
|
Organization:
Decentralizing
Management: Professional
Technology:
Diversification
Funding Stage:
2nd , 3rd
, Bridge |
|
pp. |
Problem
|
Solution
|
Action
|
|
6.1 |
Growth
Risk:
|
Reinventing your
business model, experimenting extensively to find a successful new model
and get to the next stage of growth
Development of
an awesome flexible and innovative company structure adaptable to
changing internal and external conditions
Development of
an effective and flexible production systems responsive to change |
Stick to
what you do best and apply it in areas no one has considered before.
Design
a new
business model that will enable
growth-oriented expansion
Reinvent your
sustainable growth,
competitive and
differentiation strategies
Maintain a
balanced business system
Diversify and create
new market
niches
Consider
franchising your
trademark and business model out (→
Example)
Develop
venture strategies
Maintain a purposeful and
organized
search for new
opportunities
Build an
intrapreneurial organization
Develop
strategic
alliances and
joint ventures
to support your growth program
Ensure staff
participation in decision making; maintain good communication
at every level of the organizational structure
Define the focus and
develop a
business plan for the
expansion stage of your business. Treat your business plan as a work in
progress
Harness the power of diversity and
manage cross-cultural differences |
|
6.2 |
Technology
Risk:
|
-
Establishment of
an intellectual property management system tailored to the requirements of
the expanded markets
-
Management of
project portfolio and prioritization between the core competence and
expansion projects
-
Development of the
ability to adapt quickly to requirements of the new marketplace
-
Development
of an
innovation-conducive environment
in the company
-
Top management
participation
-
Development of
strategic technology development partnerships
|
|
|
6.3 |
Marketing
& Competing Risk:
|
-
Expand and
re-target your marketing campaign
-
Research of the
new markets
-
Research of the
current market and its possible reaction to your expansion plans
-
Reinventing
market
development strategy
-
Development of
marketing partnerships
|
|
|
6.4 |
Financial
Risk:
-
Increased cash flow and
requirements
-
Debt service exceeding cash flow
-
No ROI and capital investment
analysis
-
Investments in unknown areas of
geographical & channel expansion and broadened operating capabilities
|
-
Operating costs
reduction through optimization of production systems
-
Raising of venture
capital for expansion of the business
(second,
third rounds)
and/or for preparation of the initial public offering (IPO)
|
-
Look at several measures of
capital employment - not just one
-
Work back to costs from what
customers are prepared to pay
-
Reduce inventory costs by
developing
lean production systems
-
Explore new opportunities for
fundraising: international financing; public stock offerings;
strategic alliances;
mergers and acquisitions
-
Raise additional cash licensing
your technology out
-
Enhance shareholder value by adopting a
leading-edge reporting model
-
Upgrade you expense control system
|
|
6.5 |
Team &
Management Risk:
-
Turbulence caused by the need to
develop new organizational structures
-
New executives' values clash with
the culture
-
Layers slow decision-making
-
Lack of delegation and employee
empowerment
-
No feedback & analysis of
profitability & performance
-
Blurred accountability for
corrective action
|
|
|
