Problems of the growing business

Average business in its development encounters with one and the same by the problems, which have the greatest effect on its prospects

further increase. It turned out that on the road, along which goes the owner, accomplishing qualitative passage from the owner

(interests of which they lie at the sphere of production or trade) in the capitalist (interests of which consist of the the effective

the use of existing capital), are decomposed several by the rake: practically all begin on them with the enviable constancy.

Let us try to prevent the appearance of the new lumps, after transferring typical problems, with which the owner of particular business it is compulsory

it encounters in its development.

Thus, rake the first. ' successfully all that which although somehow works '. So many forces were assumed on that in order to neglect project.

Equipment was bought and was mounted, command was assembled, production was adjusted, long negotiations s were conducted

by suppliers and by users. And here is - the long-awaited success, the desired profit. Let this profit only be less than it was expected - not

misfortune. We will neglect one additional production line, will hire other people, let us leave for the new markets. Here no longer one, but five

production lines they work in three changes, and buyers cost in the turn after the production. But profit falls. Gradually all forces

companies begin to depart to that in order to support the current profitableness, and the discussions does not deal already with the increase and the development - only

to be held. But save neither sixth nor the seventh of line, but the eighth finally attains enterprise, leading to the collapse.

It is familiar? They did hear about such histories? The matter is here here in what: each business has its boundaries, in which it can exist.

You will plant into the shoe workshop three shoemakers instead of one - revolution will grow triply. You will plant there three thousand shoemakers -

and you will ruin in the week, since market does not need such power. But if you will try to seat apart them around the different cities - not

you will be able it must check them. Sooner or later each owner of particular business close approaches the barrier,

to overcome which is possible, having only completed not quantitative, but qualitative passage. To forecast this passage necessarily

previously. But for this, in turn, it is necessary to pose to itself altogether only five simple questions:

The first: which the immediate objective of my activity (let us say, on yr -two)?
The second: what new possibilities will give to me achieving this goal?
The third: which there will be, taking into account these new possibilities, my new, long-term objective (years to 5-10)?
The fourth: so whether me does please itself this long-term objective, in order to dedicate to its reaching so large a part of its life?
And the fifth: understanding its now long-term objective, all whether possible I do make today for its reaching? If answers to all these

questions are caused in you neither difficulties nor doubts - it means, you passed these rakes successfully. I congratulate.

Misfortune, however, in the fact that here us be on the watch rakes number two. ' it is so occupied, what there is no time to think '. Actually: 12 hour

the workday and thousands of questions, which require the immediate solution, do not leave time to the reflections about strategy. Matter here not

only in the incorrectly constructed structure of management of company and in the chaos of information traffics. It came, of course,

to encounter the situations, when Director-General, the very same the owner of company, directly leads dozens of the chiefs

divisions, and this with the fact that in any textbook you will find the reference about the so-called ' standard of controllability ' - not more than seven

direct subordinated to one manager. And nevertheless this is the sole reason for the catastrophic shortage of time.

The crisis of increase is guilty. In the small business the owner, almost always coming out in the role of top manager, keeps under his control

practically everything. But business grows. Grows the volume of information, which must be taken into consideration. But here still and they appear

new businesses, promising projects, the remote branches. "family business ' becomes serious company. Only method

to be held in this case on to float - to gradually introduce the elements of corporate administration, hiring the qualified managers and

correctly justifying them. Moreover, you will notice,: top managers must be interested not only in the immediate gains and the increase

profit, but also in the long-term outlook of the growth of company. On how this to make - only it is below. There is and one additional problem. Governing

by small business, you, in the first place, govern the process of production (sales), using the appropriate tools and

key indices. But when businesses and projects becomes much, in the head office is appropriate the already financial structure

the administration, when deepest concern becomes not production, but the structure of capital and investment briefcase. And if several

years ago you searched for experienced workers and to specialists in sales - now search for even and financiers.

Thus, now you - the owner not of one, but several companies or even holding. And all this - your. Here you they be on the watch the rakes

number is three. "entire all around collective farm, everything all around my '. As to tempting relate to all these companies and their calculations as k

to its own pocket. So it, as a rule, occurs. And then nightmare begins. Intricate financial relations between

by the related enterprises, where all must by all, where the profit of one company goes to the pay-off of the losses of another, they bring k

the absolute impossibility of determining the economic effectiveness of the separately undertaken subdivision or business. It was necessary for us

to encounter the situation, when it occurred after the disentanglement of this ball that it is more than half of the enterprises of holding, with

the careful examination, they proved to be unprofitable. There were the completely curious cases, when the director of companies of one of the the large

Moscow is holding entire month desperately they argued about that, to whose budget to carry the expenditures for fodder of watch dog (800

Russian rubles per year), losing in this case on unprofitable projects of hundreds of thousands of dollars. Soak here must the introduction of the adequate

the system of the administrative calculation (you remember - we already they advised to search for financiers) and ordering of the information, which turns into

company. This system is based on the correctly constructed network of the exchange of the information, basic requirements for which are simple:

clearness, umestnost', authenticity and comparability. Then only then the flow of money, generated by different businesses

and by projects, they will become the precise indicator of their success.

By the way about the money - rake the fourth. "all money equally green '. Let us have a talk about the most common errors, the first

from which - ' the money occur their and strangers '. Strangers must be returned, its are not. The financier (that same) hired by you will prompt to you,

that all money, their or strangers, possess their cost. For the strange money, if we speak about the loan, these are percentages on the credit.

This is that profit for its money, which you would obtain, after putting money into the project with the low risk (for example, into the bank to the deposit).

This is primitive explanation. If it is a little more complicated, then this is called WA.CC (weighted average cost of capital) and is determined by

to special formulas and to coefficients. Idea in the fact that if the project, achieved to its money, brings to you profit,

smaller than value WACC, then project is for you unprofitable. Try to calculate your business, on the basis of the fact that you

they themselves in themselves took money on credit hearth, let us say, 23% of annual (but this the exemplary average rate WACC for the business). It will remain

profitable? Error the second: credit - this is bad. Case from the practice of contributor: the owner of the large tourist holding

with the pride it stated to me that is used not the kopeck of borrowed means. The author posed three questions. ' how much you could

to additionally put in its business soon with the retention of the current profitableness?' - ' about million of dollars '. ' which

your mean annual profit?' - "30-35% '. ' under what percentage you could draw borrowed means?' - ' to 15% '. Answering on

the third question, my collocutor already understood that because of his erroneous ideas and stereotypes he loses not less than 150 thousands

dollars per year. To speak about the money is possible practically to infinity, but it is important that not all money are identical. Only understanding

nature of money will give to you the possibility to complete qualitative jump in the business.

We pass to the fifth rakes. ' trunk without the knob - to bear heavily, and to throw pitifully '. This, it is completely possibly, about one of your

businesses or enterprises. How, after all, to determine, does stand the enterprise of the forces packed into it and facilities? Profit -

by profit, but for the respecting itself capitalist not so much profit, as increase in the cost of company herself is the main thing

by the criterion of its value. Conducting the professional estimation of company - matter sufficiently being expensive, however, to have at least the very

approximate idea about its cost is necessary, and will help you in this those same, found by you earlier, long-suffering

financiers. One of the most common methods of estimation under the conditions of the absence of the second market for actions - method

the discounted flow of money, generated by company. Analyze your business: the situation, when even with is not excluded

the growing profit the cost of company for you decreases (for example, because of an increase in the cost of your money - because of those being appearing

more profitable projects with the low risks). What to make with the enterprise, if its cost does begin to be reduced? Versions

several: liquidation (with the sale of property), sale, confluence and absorption, investment. I will especially note confluences and absorptions.

Paradoxical situation: in the large business (billionth revolutions) the transactions on the confluences and the absorptions in 75% of cases conclude

by failure, and the united company as a result st?it less than the arithmetical sum of the costs of initial companies. In the average business

(revolution to 100 million dollars per year) all strictly on the contrary, and 75% of transactions prove to be successful. This occurs because two

relative to small companies, after being combined, rise above the average level of competitors, and opening before them

prospects with the interest compensate organizational problems and cost of confluence. The sometimes expected effect is so great, that

becomes advantageous the absorption of strange company with the attraction of borrowed means (leveraged buyout). Only here where these their, borrowed

means, to take?

Here us wait rakes number six. "good projects much, only there is no money '. Here the paradox: exactly as

enterprises suffer from a deficiency in the investments, so banks suffer because of the absence of the suitable projects. Key concept

here - "investment attractiveness '. The experience of our company shows that during the correct organization of the investment

process projects under today's conditions possess the high degree of attractiveness for the foreign and local investors. In

the construction of the optimum structure of capital of your project you will help the use of entire variety of the existing financial

tools, the knowledge of their special features and principles of application. It stands, perhaps, to dwell only on several is elementary

simple things. Developing sequential investment memorandum (precisely it, but not business- plan, it is the basic tool

the attraction of borrowed and joint-stock means), think, what investor first of all must be interested in your project -

strategic (branch) or financial - they have different interests in your business. Arise to the position of your of that assumed

investor you will look by his eyes to your project: does appear it sufficient to attractive? Do not forget about by marketingovom

the analysis of business before and after assumed realizing of project. One additional general was guided: each corresponding risk in the project

it must be accepted by the side, which is capable best of all to check this risk. And let you they do not irritate so

primitive recommendations - if soblyudalis' at least they, the number of successfully realized projects would be considerably above.

Last rakes - from the anecdote. Goldfish proposes to man to carry out one desire. That, after thinking, he says: ' I want, in order to u

me everything was '. ' it is good, answers goldfish, in you everything WAS '. No one is eternal and it is not insured against the misfortune. Early or

late you will be forced go away from the matters, one cannot more manage the exorbitant load. Pose the question to itself: that

it will remain from your state through several years? What do inherit your children? Your capital and incomes from its use must

not only not to decrease after this, but also, as far as possible, to continue steadily grow. Council not to store all eggs in one

to basket, diversifying its investment briefcase - not panacea. It is worthwhile to think also about how to make stably profitable your

the minority (not control) shareholdings in the companies, coowner of which you are. In advance care o

the introduction of the corresponding changes in regulations, which regulate the procedures of making decisions and designation of the council of directors,

you will provide the mechanisms of protection from the unfriendly actions of your partners. The correct motivation has special importance

the top managers of your enterprises. As a rule, to leaders is proposed percentage of the obtained by company profit. Deficiency

this method lies in the fact that your colleagues are insufficiently interested in the activity, directly not connected with the increase

the current incomes of enterprise. The long-range programs, designed for increase in the cost of company and obtaining of dividends in

the distant future, by them they are not interesting. The solution of this problem is long ago found on the West, where the top managers have a shareholdings,

which they can sell at the moment of release from the company, after winning on an increase in its cost. Thus, the interests

leaders maximally they coincide with the interests of the owner of the enterprise: this gives the specific guarantee of the fact that they will be

to follow the course chosen you even after your withdrawal from the management.

We transferred here only seven basic problems, which encounters the majority of the owners of particular business in

the process of its development and increase. We are distant from the thought about the fact that, after reading this article, the owner of enterprise at one stroke

it will become the successful proprietor of plants, newspapers, steamships. Our purpose consisted of you placing before yourselves

the enumerated questions, after thinking above the versions of answers to them. We hope that this at least will a little help you to complete

qualitative jump in your business, will facilitate difficult way from the owners in capitalists.