3 Ways to Facilitate Your Strategic Growth Planning
When you’re ready to take your business to next-level growth, you need a strategic plan for getting there and for evaluating the opportunities to do so. Your path to growth depends upon a forward-looking strategy, backed by solid financial modeling. Here are three examples of paths you can take and how to evaluate them.
1. Growth by Acquisition
Have you explored the short and long-term cost savings and synergies that can be achieved by purchasing a key vendor or supplier? The right financial models will enable you to analyze this type of vertical acquisition opportunities.
Would you like to purchase a competitor? Here’s how to analyze an opportunity for horizontal or vertical acquisition:
- Estimate the true value of your competitor’s or vendor’s business
- Analyze what their balance sheet, income statement and other numbers show
- Determine whether the value has been artificially inflated by one-time earnings like federal pandemic assistance
- Look at how “normalized earnings” compare
- Determine if there are undisclosed potential liabilities looming like lawsuits
2. Product or Service Line Expansion
Adding a new solution can be a great way to increase revenues, but will it be profitable?
Here are key questions to answer:
- Does it hold up under thorough financial modeling?
- What is the cost of any hiring you will have to do to support the new product or service?
- Does it fit well into your overall strategy or is it a case of “shiny object syndrome”?
3. Marketing Modernization
Effective marketing – including a coherent strategy, messaging and content that resonates with prospects, a website and promotions that generate leads, and outbound campaigns that get attention – makes selling and growth far easier.
A forward-thinking marketing strategy, backed by solid financials and key performance indicators (KPIs) can put you on the path to growth.
The Right Partner for Growth Planning
At Kirsch CPA Group, our accounting and advisory services are designed to provide you with a forward-thinking, holistic strategy for achieving your financial goals, no matter which path to growth you pursue.
Whether you’re ready to move forward next month or next year, Kirsch CPA Group is available to help.