October 1, 1998 12:00:00 am

Speaking of Business: Look inside for roadblocks to your businesses’ growth

By Russell Disberger

Q. I am an owner of a business that grosses $5 million a year. My business has been growing at 30 percent per year over the last three years. However, it seems that we have hit a roadblock over the last six months. My business has stopped growing. I have hired industry experts and outside CPAs to review my books and the industry reports. Their findings all point to the conclusion that my company should be growing. Am I or my consultants missing something? I would love to take my company to the next level.

A. I would recommend looking at the following five components within your company:

1) Take a look at your current management and their skills and behaviors. It is often the case that individuals are trying to perform duties that do not a match their dominant natural personality and behavior, thus, lower productivity and adding undue stress on themselves, their employees and the company as a whole. A symptom of this problem, which would show up within departments and the company, is poor communication. Poor communication is one of the top reasons why companies fail. In addition to looking for the symptom of poor communication to gauge if this is a factor contributing to your problem, I would suggest performing a behavioral assessment test on all involved employees.

2) I would take a quick poll of your target market to see what image they have of your company. If the response you get back does not match the company’s purpose statement, you have a problem.

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3) Check with your customer-service department and your front-line employees that deal with your customers. They should be able to tell you the opinion your current customers have of your company.

4) Review your short-term and long-range strategic plan. Be sure your action statements clearly spell out the steps needed to reach your goals. Make sure your employees are aligned with your goals.

5) Check your management style. You may be holding the company back from growing. Different chiefs are needed throughout a company’s life. Each chief will need different talents to take the company to that next step. For example, Bill Gates went through many different chiefs throughout the growth of Microsoft. Each new chief had just left a company that was at the next level that Bill wanted to take the company. You may need to consider stepping aside and letting a new chief lead your company to the next level. There are many variables within a company that could be holding your company back from growing. These five points are just a few of the many nonfinancial areas you should look into to help your business get back on the right track.

Q. I want to start a new business. I hear there is a lot of red tape from the government to get my business up and running. Is there any way to cut through all the bureaucracy?

A. The Small Business Development Centers of Colorado, along with the Governor’s Office of Business Development, have a one-stop shop for persons wanting to start a business or for answering basic business questions. Their number is (800) 333-7798. They will help you wade through all that red tape. They make starting your own business a little less of an ordeal.

Q. I need to apply for a large loan to buy some specialized equipment for my business. Should I get an SBA loan or go through my local banker for the funds?

A. The first thing you need to accomplish is writing a comprehensive business plan before going to anybody for a loan. The book, “Anatomy of a Business Plan,” is a great start for anyone in need of a business plan. After your business plan is complete, you will need to contact your local banker. Individuals can no longer choose to get an SBA loan – that choice is up to your local banker. I would recommend for you to do your homework on the different types of loans available. Contact your local Small Business Development Center for some free advice on the different loan programs or grants that are available for your business. Remember that loan programs are constantly changing. Be sure you are getting information on the most-current loan program.

Russell M. Disberger is director of business development for the Aspen Business Group LLC in Greeley. His Speaking of Business column, debuting with this installment, answers business questions from readers. Please mail your questions to The Northern Colorado Business Report, c/o Russell M. Disberger, 200 S. College Ave., Fort Collins, CO 80524, or e-mail your questions to disberger@aol.com.