Build, Grow and Sell a
High Value Manufacturing Business
Are you serious about growing your business but are dissatisfied with the costs, risks, results or rate of progress? We may be able to help.
We work with business owners to achieve Financial Independence by building a great company that is more profitable, easier to run, and is well-positioned to maximize its sale price when you decide to sell.
Achieve Financial Independence by Building a Great Company
You've invested considerable time, energy, and money into your business and made many sacrifices to achieve the success you have today. You deserve to get the best return on this investment you can: Financial Independence.
The key is to build a great company that is more profitable, easier to run and is well-positioned to maximize the sales price when the owner decides to sell the business.
On its sale the owner achieves his or her end goal: financial independence.
But achieving financial independence can be difficult. There’s many tough problems to resolve, major obstacles to overcome and a lot of work to do.
Growth Can Be Expensive and Risky
Early in my management consulting career, I started working with a rapidly growing company manufacturing factory-built buildings. The firm had a good product. Their market was expanding, and the owners were pursuing exciting growth opportunities. They called me in to help build their business to support its growth. They emphasized the stakes were high. The growth opportunities were real, but only if they could overcome their significant “growing pains”.
Limited Resources Choke Growth
Their growth consumed available cash putting enormous pressure on its limited resources. The firm lacked money, time, people and skills needed to support growth. This created a growing backlog of unresolved issues with customers, employees, and shareholders. Growth overwhelmed operations and they had problems with product quality and delivery.
Everyone was frustrated. The company was in fire-fighting mode. There was a lot of drama and heroics. The company could not grow. It needed to overcome is various issues or lose out on its opportunities.
As I worked with the company, progress was slow at first. Getting commitment to building the business was difficult. I encountered significant resistance.
We had false starts and several employees didn’t want to participate – they just wanted to get back to their “real work”. Many people were impatient for results. There was a lot of pressure on staff to just work harder and faster. But that was counter-productive – it just made things worse.
During the day I’d work with staff on the tough issues. We’d try out different approaches to solving the problems. After work hours and on the weekends, I’d study how other companies resolved these types of issues and then apply these solutions to find out what worked and what didn’t.
Develop the Growth Plan
Working with management, we developed a growth plan and started mobilizing the organization to implement the plan. I put a special effort into finding how to make change happen with limited resources and in doing so, discovered the many assets hidden in the firm.
We set aside 3 hours every week with four different teams to work on the business. We ventured into the unknown and worked hard, even though we weren’t certain whether we would be successful. We made some small changes.
Find Hidden Assets
One of the firm’s hidden assets I found was in the brainpower of its people. Most people were hired for specific skills as operators or trades, but they had much more to offer. We tapped into their ideas about the work they and others did, what the problems were and how to fix the problems.
Every week we made progress on addressing the issues. This gave us a sense of momentum. Employees were engaged.
Make a Breakthrough
We made a breakthrough when a team identified over $40,000 of cost savings. When we presented the results, top management was skeptical.
But we had hard evidence to back up our claims.
When management saw that the results were real, everything changed.
They said, “give us more”. We set up more teams tasked with building the business to support growth. Each team delivered on average over $50,000 worth of permanent changes to the business within a few months. In the next 18 months I worked with 16 more teams to resolve the company’s most pressing issues.
Soon after I completed my assignment, another company acquired the manufacturing firm. The original owners received a premium price and had a successful exit.
Refine and Repeat the Success
Since this assignment, some 30 years ago, I’ve repeated this approach with several manufacturing firms. I’ve continued to develop, refine and implement a systematic approach to build and grow a high value manufacturing business.
Get Consistency in Work and Results
With each company I worked with we first ensured they had a strong foundation in standardized work to achieve consistent results, increased efficiency and higher productivity.
Create a "Chain Reaction"
We then created a “chain reaction” of events in each work area:
make the work easier to do
to make better quality products
and get work done faster
with less cost and risk
which delights your customers who buy more product at a premium price,
and your reputation attracts new customers.
This approach got great results: the business was easier to run, had higher margins and revenues grew.
Expand to Growth Opportunities
Once the company gained consistency of operations and results and had established its own “chain reaction” of results, we expanded the scope of the improvement projects. We now sought out new opportunities: new products, new markets, new business models and new ways of working.
Strengthen the Business Drivers
We continued to work with limited resources by finding and using hidden assets in the business, including the intellectual capital of employees, and other intangible assets. We worked with companies to strengthen the 18 key factors that generate improved performance and the value of a business. These are called “business drivers”.
Keep the End Goal In Mind
We’ve kept the business owners’ end goal in mind: achieving financial independence. We do this by building and growing a great business that runs really well, is more profitable and that is positioned well to get them the maximum sale price when they choose to sell their company. When the owners sell their business, they unlock the full value and have financial independence.
In many ways, things haven’t changed from my initial consulting assignment. The stakes remain high. Companies need to be more efficient and get consistent results, but they also have numerous growth opportunities that require different type of changes. With every industry now being disrupted every few years, few companies will thrive by only increasing the efficiency of their operations. They must seize new opportunities and make fundamental changes.
Grow with Limited Resources
They still must resolve the twin issues of “growing pains” and limited resources. The breakthroughs come when the company finds its considerable hidden assets and uses these assets to building the company to support its growth and increase its value.
The High Value Manufacturing Business
The High Value Manufacturing Business program is for owners of manufacturing firms who:
are dissatisfied with the costs, risks, results, or rate of progress when growing their business.
want a predictable path to Financial Independence from the sale of their business.
We provide a proven, systematic way of building a great company that is more profitable, easier to run and is positioned to sell for the maximum sales price when the owner decides to sell.
You can grow your business with limited resources while minimizing risks, accelerate progress and get great results. Our program provides manufacturing firms with a growth plan and an effective method to mobilize and support your people to achieve your business goals.
Get a Minimum 5x Return or $100,000 per participant
We deliver a minimum 5x return on your investment into your company. While company opportunities differ, we target a minimum increase of five percentage points in profitability within one year.
We generate direct, measurable improvements to your firm's profitability in the amount of a minimum of $100,000 per key stakeholder that participates.
In other words, a company making $10 million in annual sales can increase profitability by a minimum of $500,000 when 5 key stakeholders participate.
As well, our work results in increases in a company’s valuation.
These are accelerated rates that are in addition to your own company's targets and are lasting and sustainable changes. These results are based on companies having annual revenues between $3 million and $25 million.
Fees are Value-Based
We stand by our results and believe in sharing risks. Once the Growth Plan has been prepared for a one-time fixed fee, our fees are "value-based" and determined by the value created in your business.
Start with Your Opportunities for Profitable Growth
As we go forward into the future, the first step is to identify and quantify the opportunities for profitable growth and increased value of your business. You and I will likely work together closely on this. You are going to get access to valuable insights into your business situation and actions you can take. It will go beyond what you’ve tried in the past. It will go beyond tweaking, blindly cutting costs or simply optimizing the business.
Evaluating the Possibilities
We will look at your business in the future and how to position it to benefit from various economic trends, technological changes and social forces.
We will go on a journey together of discovery and progress. Here’s a sample itinerary of the journey.
Find hidden assets and cash in your business such as intangible assets not found on your balance sheet (people, customer assets, intellectual property, management systems, etc.)
Strengthen the business drivers that have the highest return on investment
Determine the best allocation of resources to spend on certain markets, customers and products
Create greater value for your customers that increases revenues
Create more value from operations that increases gross margins
Increase the company’s multiple that increases the valuation and sales price of the business
We evaluate literally hundreds of different improvements that could grow your company, and then narrow down these to those with the highest return on investment. Then we mobilize your organization to accomplish better results.
We Have a Few Openings
We have a limited number of clients and can’t take everyone on. We have a few openings in the coming months for qualified clients. So I’d like to hear from you right now. How do you see us working together? To find out more, book an introductory call to see if there’s a fit.