Basics That Have Built a Business
Last year I was fortunate to attend a function sponsored by The Federal Government’s Enterprise Connect Programme and The CEO Institute. One of the speakers was the host, Frank Gavrilos, MD of AC Labels.
Like many small business owners, Frank has a background in corporate management and “jumped of the cliff” a number of years back when he took over AC Labels. Frank spoke how he has successfully built on a foundation the founding owners had laid, and what has worked for him. Not surprisingly, sound business principals were at the root of his management style. Frank saw the following as the key issues focused on in building AC Labels:
1. Grow the Pie
Frank wasn’t talking about simply growing market share, but about looking at what other markets he could address. This meant a change of culture within his sales force, but one that now means he is building his business outside the original confines.
2. Rationalise the Business Plan
- Like any successful business owner, I am sure Frank has a clear vision and strategy for the business. He has this documented in a business plan but he stressed the need to remain focussed on core competencies and to create networks and alliances that will help turn the business plan into a reality. And another insightful comment was to “resist commodity pressure” – focus on your “value add” and stay true to your business plan. Lastly, to turn your business plan into actions through a solid “business team” and share your plan with them.
3. Ruthless Cash-management”
Frank spoke highly of his Financial Manager and his “affair” with his balance sheet. This is one of the best pieces of advice any business owner could take on board. Unfortunately I have seen too many profitable businesses go under due to poor cash management.
4. Focus on execution, not strategy
Now I am sure Frank didn’t mean here to forget point 2, but to not get carried away with “navel gazing”. To succeed, the business strategy must be executed and deliver real and immediate benefits to the business. In Frank’s situation, this meant has meant, among other things, a focus on customer service, print quality.
Frank went on to talk about things he would have done differently and what he sees as the most pressing issues in the current market environment – I’ll share these in the next post.