The Missing Component In Many Businesses’ Growth Plans

Recently I wrote about a proven strategy for business growth. At Birthing of Giants Fellowship program sessions, where I serve as Chairman of the Board for the company, we call this strategy “Capital Market Readiness”. It makes up one of four “pillars” of our masterclass for entrepreneurs. Though our program is tailored for fast growth companies in transition from small business to large company, Capital Market Readiness is a vital concept that every size business should understand. 

Capital Market Readiness can be easily described in one sentence:

“When it comes to your company, make every decision as if you’re going to run it forever AND as if you are going to put it up for sale tomorrow.”

It’s easy to say, but not so easy to implement. Doug Tatum, advisor to CEO’s of emerging middle market companies and award winning author of No Man’s Land, talks in his book about what it takes to transition into a company’s next phase.

“To survive this phase [of transition from a small company to a big one] in a company’s life cycle, entrepreneurs must step away from the day-to-day and subject their businesses to a rigorous, objective analysis.” - Doug Tatum, No Man’s Land

In my article I point to a few thought exercises to give you an idea of how you build a company to sell which includes adopting best practices, taking no shortcuts, determining the value of your company, and your role in it as leader.

To that list I’d also add a concept that in our community we call “Kill the Legacy.”

 A big component of amplifying value is to recognize when a practice or even an employee that helped to get your company where it is won’t serve to get it where you want your company to go. This often involves you as the leader to step away from the day-to-day operations of your business to work ON it, not in it, a concept that Robert Eisiminger, co-founder of B2G giant Knight Point Systems, experienced with his own company’s recruiting practices.

“When you start doing things that a CEO should do in terms of killing, watching, and building instead of just the day to day tasks, […] this is the way you bring value to your organization and make it better.” - Bob Eisiminger, co-founder of Knight Point Systems (which recently sold for $250 million)

Bringing value to your organization is in many ways the primary responsibility of any company’s leader. Having a clear vision, an empowered team, and lasering in on where to change what needs to be changed, is how you’ll get there.

“When you know your numbers, the weak spots in your business operations, and what you want your business to look like in 3 years (5 years, 10 years), you can build your company in ways that constantly add value to it.”

You can read my article in its original form here.