The Entrepreneur's Guide to Managing Growth and Handling Crises (Entrepreneur's Guides (Praeger))

Everyone knows the typical entrepreneurial success story: A couple of entrepreneurs have a great idea, work their tails off to establish the business and, before long, they're set for life. Right? Hardly. Turnaround artist Theo van Dijk knows two things: First, young businesses that have survived the start-up years will face periods of stagnation. Second, every venture at some point reaches a complacent plateau, owners take their eyes off the ball, and—wham!—a crisis charges through the door. Entrepreneurs can avoid that fate by watching for signs of trouble and taking the action steps van Dijk outlines in this book. And it's worth the effort, van Dijk believes, because troubles and crises all have a silver lining—they position the company for greater, long-term growth. Entrepreneurs, predictably, become overconfident just when they think they have it made. A crisis of leadership and/or direction then occurs, and it usually has to do with mismanaged growth. Suddenly, the company can't fill orders, or customers complain about service and delivery. Or family bickering slows momentum just when the company is poised to take off. Theo van Dijk has seen it all, and he knows what the real problem is. During the start-up years, everyone is focused on creating a product and building a list of customers. Informality and flexibility are the rule. But at some point, what used to work no longer does. Survival is once again at stake and the odds are once again very much against the survivors of the early entrepreneurial phase. It's right at this point, van Dijk argues, that the structure of the organization needs to become more formal and "built to last." He shows many ways companies in crisis can overcome challenges by changing the way they handle customers, putting new processes and procedures in place, and managing employees in a more professional manner. This work is painful, but it's necessary if the company is to survive trouble and set a course for long-term growth. Besides tips, tactics, prescriptions, and strategies, Managing Growth and Handling Crises also features: ∗Appendices with tips on hiring consultants, creating job descriptions for key employees, and setting up systems to chart cash flow. ∗A full chapter devoted to cases studies of successes and failures. The reward is great: The companies that make this transition—from start-up to solid growth company—are the true entrepreneurial success stories you read about in the business press. Front Matter......Page 1 Contents......Page 7 Acknowledgments......Page 9 01 Impediments to Growth......Page 11 02 What Needs to Change and Why......Page 19 03 Common Failures of Post-entrepreneurial Businesses......Page 63 04 Creating Order from Chaos......Page 103 05 The Ones that Went Before: Some Successes and Failures......Page 149 06 Conclusion......Page 161 APPENDIX A: THE EARLY PART OF A COMPANY’S LIFE CYCLE......Page 165 APPENDIX B: SOME GUIDELINES FOR EMPLOYING CONSULTANTS......Page 166 APPENDIX C: EXAMPLE OF A PRACTICAL CASH-FLOW CONTROL SYSTEM......Page 167 APPENDIX D: SAMPLE JOB DESCRIPTIONS......Page 170 APPENDIX E: RECRUITING A GENERAL MANAGER......Page 172 Bibliography......Page 177 Index......Page 179 About the Author......Page 187 Front Matter 1 Contents 7 Acknowledgments 9 01 Impediments to Growth 11 02 What Needs to Change and Why 19 03 Common Failures of Post-entrepreneurial Businesses 63 04 Creating Order from Chaos 103 05 The Ones that Went Before: Some Successes and Failures 149 06 Conclusion 161 Back Matter 165 Appendix 165 APPENDIX A: THE EARLY PART OF A COMPANY’S LIFE CYCLE 165 APPENDIX B: SOME GUIDELINES FOR EMPLOYING CONSULTANTS 166 APPENDIX C: EXAMPLE OF A PRACTICAL CASH-FLOW CONTROL SYSTEM 167 APPENDIX D: SAMPLE JOB DESCRIPTIONS 170 APPENDIX E: RECRUITING A GENERAL MANAGER 172 Bibliography 177 Index 179 About the Author 187 Provides advice for entrepreneurs on managing and handling growth and crises, discussing impediments to growth, change, common failures, creating order, successes, and other related topics