Cash Flow From Investing Activities Includes Which Of The Following The Journey to an Accelerated and Sustainable Growth

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The Journey to an Accelerated and Sustainable Growth

Businesses around the world face challenges when it comes to growth. They reach a certain point in revenue and then plateau for months or years, not knowing how to get to the next level. Other companies achieve growth but then face challenges to manage it.

The performance of highly successful companies is higher than the performance of the industry average. Companies in the INC 500 are growing almost 100 times faster than the economy as a whole? How is this possible? What do these companies have that others don’t?

The path to a company’s success can be seen as a journey in which the company goes through various stages and must overcome a series of challenges:

1. Be relevant

2. Identify your core competitive advantage

3. Build institutional capacity

4. Develop a management structure

5. Innovate

The first challenge is to become relevant to the market and be able to provide value to your customers. Your customers need to perceive that you add value to them and make their lives easier with your products or services. To achieve relevance, your company must focus on developing a clear value proposition and deliver it to the best of your ability. This is a very difficult stage in the life of a company where the financial focus is on making a profit and achieving a positive cash flow. Only 1 in 5 companies survive this stage. The good news is that businesses that survive the importance phase create significant value for their owners, creating a sense of achievement, pride and economic independence. Good things are coming!

However, this sense of “bliss” is actually a “small and medium-sized business (SMB) trap.” It is very easy to feel good about what has been achieved so far and therefore stop here and stay at the SME level. An entrepreneur must have a strong vision of his success in order to avoid the comfort of becoming a profitable small or medium-sized business. Other external factors can also help shake the entrepreneur out of this newfound sense of “bliss”. The economic environment, the search for more demanding clients and increasing competition present challenges and an opportunity to move the company forward and become a better organization than before.

Another challenge is to differentiate yourself from others by creating a competitive advantage. In the early stages of a business, an entrepreneur usually feels pressured to adopt different types of business just to generate revenue and move the business forward. These activities can lead to a loss of focus and the provision of products or services that are not actually essential to the company’s business or what the company does best. This is the time to re-strategize and ensure that the company focuses on what it does best, creating true innovation by moving away from commodities to a differentiated value proposition. This is the time when a company focuses on its core competencies and outsources the rest.

Companies often need investment to finance their innovation and growth, and at this stage there is a tension between the two: Should we focus our financial resources on financing growth or investing in innovation?

The third challenge is to build the institutional capacity that will enable the company to transition from a “one man show” to an organization where different people can work together under clear roles and responsibilities without stepping on each other’s toes. To be successful, an entrepreneur will need to hire and lead the right management team and be able to align everyone under the same vision.

The journey will bring “tornadoes” that will shake and challenge the business. There will always be a tension between managing growth and profitability and maintaining focus. In addition, the leadership of the organization will have to ensure that the talent and the team in the organization remain engaged and motivated throughout the journey and that they always give their best.

The fourth challenge is management in high-growth environments. The management of the organization is in the daily grind, which sometimes makes it difficult to look at things strategically and from a distance into the future. The right management structure can establish the right sounding board to provide mentoring and guidance when needed, as well as contacts in various markets to further grow the business. However, a management structure can only be useful if the people in the structure have the right insight into what is going on in the organization. Establishing the right coordination and control mechanism at all levels of the organization will enable the creation of strategic dashboards that provide insight into the organization so that management can make decisions with the right information.

At this point of corporate maturity, the entrepreneur enters a new point of bliss: the organization dominates its niche, operates in a high-growth, high-margin environment, and has excess cash flow for investments. But how can an organization maintain its dominant position?

The fifth challenge involves maintaining your flexibility and innovation. You can do this by moving your current offering into other areas, as well as by diversifying your product offering and/or moving into richer parts of the value chain to offer products or services that customers are more willing to pay for.

On this part of the journey, companies face a growth dilemma. Should they continue to grow organically? Should they look at potential strategic partners that offer complementary product lines or services? Should they enter into a joint venture with another company? Should they acquire another company? Decisions must be made about investing in or acquiring additional capacity, which will require sophisticated sources of financing.

The road to the next market leader is not straight. Your business may be located in one or more parts of this journey. You need the drive to continue and succeed, and the right tools and methodologies to move forward. You need a driving force to get you started and stay on track.

If you choose to take this trip, you will:

Capture all the financial benefits of entrepreneurship

Create new jobs and restart the economy

At the end of the journey, you will be proud of your legacy to the world and become an inspiration for others to follow their dreams.

Impulsa Business Accelerator has experience accelerating more than 400 companies and helping them achieve leadership in their markets. If you are interested in learning more about the Impulsa Business Accelerator and how we help companies along the way, please do not hesitate to contact us at 1.855.IMPULSA or at http://www.impulsaxl.com

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