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October 08, 2003
Time to Start Planning for Growth
The economy is clearly moving into a recovery, as can be seen by confidence of CEO's and small business owners.
The time for entrepreneurs to start planning for this coming expansion is now. Too many wait until the challenges of growth and expansion begin to show up in various symptoms in their businesses. It is not too soon to begin to update financial forecasts, staffing plans, exit plans, and financing plans. Entrepreneurs should begin to share these plans with their bankers and investors to begin to lay the ground work for any future capital needs. It may not be time for the "ask" quite yet, but communication about such plans can make raising capital somewhat easier when the time actually comes.
Posted October 8, 2003 02:38 PM
Comments
I strongly agree. I currently work for a public "growth" company and that has been the focus of the organization from day one. Although the economy has not been great, we continue to build new surgery centers, as well as acquire some established centers. Our stock continues to rise, partly as a result of continuing current growth and planning for future growth. While I know not all companies want or need to grow, it is important to address the issue and plan accordingly.
Posted by: Amanda at October 30, 2003 11:39 PM
Dr. Cornall made a basic, but brilliant point. It is very true that the economy is recovering and is on the up swing, which I am excited about given that I am an entrepreneurship major. I am noting that if one has a venture idea, it makes since for one to share it with their banker, lender, etc. My reasoning is if the idea is mentioned to your banker/lender, they will know you have an idea. The idea may or may not stick to them. But if you bring up the idea again in another meeting it shows consistancy and shows you weren't just another 'idea.' If you keep talking about the idea with the lenders and show them steps that you have taken to go deeper with the idea I think it will help your chances of getting the loan. So that when you do finally go forth and ask for the loan, the lenders will have had a previous experience with the entrepreneur.
Posted by: Ryan Snellen at January 13, 2005 02:52 PM
at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
