RECOMMENDING WAYS TO MANAGE GROWTH SUCCESSFULLY
Rapid growth is stressful for senior managers. Such growth has bankrupted far more businesses than it has ever enriched. That is because high-growth businesses demand increases in the skill sets of key managers. Rapid growth also requires changes in the fundamentals of how business is conducted. There are also key changes in major IT processes that managers must consider.
At least as important are the professional advisers—attorneys, CPAs, IT experts, and HR outsourcers—that an SME has. In our experience, few SMEs change advisers in these areas even though most growing SMEs outgrow the skills of those who advised them when they were younger and smaller. Yes, bigger advisory firms charge more. But they do so because the market for their services attests that the higher fees are cost-effective for their clients. So, while it might be painful to wave good-bye to the CPA firm that has prepared your taxes for five or ten years, it is often necessary.
Here’s the kicker: when it comes time to sell, the fact that an SME has upgraded its outside advisers as it has grown will command a higher exit price. It also won’t take as long to prepare the company for sale because it will have upgraded its processes, procedures, and practices as it has grown, thanks to the counsel of those bigger advisory firms.