Originally featured
in VGM Playbook:
Growing Your Business in Today’s
Environment, VGM’s Mike
Isaacson provided his insights
into ensuring businesses are on the
right path when thinking about
growing and developing:
As business owners and/or
leaders, you are pulled in many
different directions and wear
multiple hats on a daily basis. It
is always exciting to look at new
opportunities, both in times of
growth and prosperity as well as
in times of challenge and decline.
When things are going well, we
have the convenience to look for
that new product, business line,
etc. Similarly, but for different
reasons, when things are stagnant
or even in decline, looking for new
revenue streams and opportunities
can bring enthusiasm and
optimism into the company. In both
cases, this may be the perfect time to
look … or not.
Before you spend your personal,
professional, or business capital on
pursuing the “next big thing,” ask
yourself five key questions to ensure
you’re on the right path.
DOES THIS FIT INTO OUR STRATEGIC PLAN
SHORT/LONG-TERM?
The Strategic Plan is the focused look at
the business that sets the foundation for
the future. This document, unfortunately,
tends to start with a lot of promise and
focus, and many times ends the year
forgotten, collecting dust on a shelf. This
is a great time to dust it off and see if
this new endeavor fits the direction you
intended to go.
DOES THIS OPPORTUNITY
FALL WITHIN OUR SCOPE?
Straying too far from your core business
or model can create confusion
both within a company and with your
consumer base. To combat this, you must
have a strong handle on your strengths,
your market differentiation, and your core
competencies.
AM I BORED?
When you feel restless or if your
day-to-day has become mundane, new
ventures can be just the excitement
you need to kick-start your creativity
and passion. It very well may be a great
opportunity and work to support your
need for motivation, but be sure that it’s
not just your boredom-colored glasses
making it look like a better business
opportunity than it actually is.
AM I INTERESTED OR PANICKING?
Let’s say things are going well with your
business. Someone pitches you a new
product or business idea and you have
the time to review, evaluate, and conduct
due diligence in a calm and unemotional
way. Take it or leave it, you are all good.
Or …
Your business is struggling, and you
need to find that idea that will right the
ship and clear the skies. Someone pitches
you an idea, looks good on the surface,
so you grasp at it like the life preserver
you’ve been hoping for. There is no
“leave it” in your mind, so you take it.
So, ask yourself, am I interested or
am I panicking — do I have to make this
decision?
WHAT IS THE MARKET POTENTIAL?
There are a few follow-up questions with
this one:
- Is this being done already?
- Is there room for another player?
- What is our differentiator?
Do your due diligence, look at market
data, make sure your revenue potential
supports growth, and research the
competition.
POINTS TO REMEMBER
- You should always be on the
lookout for great opportunities—for growth and expansion. You
must, however, do so with both
eyes open and with a full understanding
of company and personal
motivation. Start first by asking
yourself questions and conducting
due diligence from a place of
awareness:- Does this fit into our strategic
plan short- and long-term? - Does this opportunity fall within
our scope? - Am I bored?
- Am I Interested or Panicking?
- What Is the Market Potential?
- Does this fit into our strategic
- By doing so, you can eliminate the
number of “shiny objects” and truly
home in on the real opportunities. - Now, go brush off that Strategic
Plan, ask these questions, and get
growing.
LEARN MORE
To read more articles and features
about HME management and
strategy, visit hme-business.com/management. To learn how services
and education from VGM can help
you grow your HME business, visit
vgm.com.
