As the storm clouds of recession appear to be on the wane, there are more stories of optimism and growth.  Many businesses will grow and thrive during the rebound - taking advantage of the fall out in their industries, attractive input pricing and the needs of their customers.  So how can you position your company for growth in 2010?

1)      Focus on your customers

Your customers are the reason you exist in the first place. If you are not spending time with your customers your competitor is. Improve customer service at all levels and seek out the customers of competitors who may be looking for a new supplier after the failure of your there existing vendor relationships. Expand the amount of business you are doing with your existing customers too. Stay close and don't allow anyone else the opportunity to go after your customers.

2)      Expand Market Share

Look for opportunities to expand your share of the market. Can you expand your geographic footprint? Are there other potential customers where you need to knock on their door? Are some of your competitors vulnerable and if so perhaps you can acquire their customer list? As the weak companies fall away from the market, there is an opportunity to expand your company's share of the market.

3)      Watch Your Working Capital Closely

Accounts receivable and inventory both decline in value over time. Make sure all customers pay on time in accordance with terms. As you grow you will find cash stretching to cover new business needs.  Make sure you control these assets tightly.

4)      Target Marketing Expense

Resist the impulse to spend more without thinking deeply about where.  The key is targeting the marketing effort to maximize the return on this investment.  Generating business from the internet? Then hire a good SEO firm to improve your Google ranking. Is your company advertising in magazines or newspapers? How do you track the results?

5)      Control Costs and Expenses

The best times to control costs are when you are growing - and when you are not!  Examine all costs and expenses by line item. Bench Mark your costs, do Process Flows to eliminate lost time. Assume all costs are unnecessary.  Challenge sacred cows.  Bid out all costs on a revolving basis - or expect to pay 30% to 100% too much.

6)      Manage Cash

Working capital encompasses all of the firm's current assets and liabilities. Are you measuring, reporting and forecasting cash?  Work with your vendors. They can be the key to getting through growth spurts if you have the relationships and trust. Work with your banks and show them the plan, explain what type of funding you will need.  If things are good, make sure they don't lump you in with their other banking clients that may be struggling. Many banks are calling loans right now, so avoid what could be a financial disaster by assuring your bank understands where you are and where you are going.

7)      Track your Key Metrics and Ratios

All businesses should have a dash board to monitor key metrics and financial ratios. What is your cash position per the bank and books? What are your sales today, last week, month and year. What is your accounts receivable Days Sales Outstanding (DSO) and what is the trend. Define these items carefully and implement a system to get you the information daily or weekly as appropriate.

Planning now will let you take advantage of the coming expansion, and thrive by taking advantage of the opportunities that lay ahead. And as a B2B CFO^®  I can help you accomplish these things and more.  Please call me on 404 348 0326 or email me at dkirkup@b2bcfo.com.

David Kirkup

Partner

B2B CFO®

Office: 404 348 0326 Cell: 770 845 6897
Email:  dkirkup@b2bcfo.com
Web:   www.b2bcfo.com

Blog:    http://www.b2bcfo.com/partners/dkirkup/blog/
Bio:      http://www.b2bcfo.com/partners/dkirkup/