When Jerry founded his CPA practice years ago, he chose, and faithfully implemented, a business growth strategy. He networked continuously, accepted every speaking opportunity he was offered and kept up to date on rapidly changing technology. Then one day a long-time client commented that she hadn’t received much love from him lately.
That stung! Jerry wanted to explore the options and we turned to a discussion of the different types of business strategies: growth, stability, retrenchment, and combination. Was it time for a new strategy?
Stability as business strategy does not mean that the company stops growing or tries to coast on its past. Stability means that the company looks deeply inward to leverage its current assets, including current and best buyers, current offerings and current employees. The company seeks to increase revenue, profit and cash on hand. These increases can be the precursor to expansion or exit if that’s on the horizon for the owner.
Choosing stability as a strategy for a year or two helps the company show lots of love to its long-time and highly valued clients and customers. It directs resources towards innovations and improvements of its current offerings and even helps the company discontinue under-performing ones. Stability allows more investment in employees with an eye towards returning to a growth strategy or a high valuation should the owner decide to exit.
It’s always the right time to review and reassess your business strategy. This doesn’t have to wait for an artificial start or end date. What is your current business strategy and is it time for a change?