As we’ve worked with companies of various sizes to build businesses, we’ve noticed an interesting correlation between the size of the company and its growth approach. Small companies typically view business building as a “do it yourself” organic approach, while large companies tend to think first about acquisition.
The truth is that companies of any size should be able to build a business using either method: organically or through acquisition. The key is building the right business case. Here is one approach we are currently using with a client.
Step 1: Define Your “Burning Platform”
Our client was experiencing a clear deterioration of its core business. There was no imminent survival danger, but the business model was changing as the company’s primary distribution channel eroded. Other companies may see a change in preferences of their core customer segment or new competitor offerings. Each of these business model changes creates a “burning platform” to build a new business.