Situation: A CEO has a young company in a very favorable strategic position. The Founders have bootstrapped the company and it is currently on the “blade” of the growth hockey stick. How can the Founders maximize the value of the company as they grow it? How do you maximize company value and strategic positioning?

Advice from the CEOs:

• What are company’s principal challenges and goals?
  • Over time, as the market begins to mature, there will be more competition and margins will drop.
  • Before this happens organize the company for maximum value, and build additional products and/or services that will maximize company value.
• Hire managers to manage on-going business while devoting top management time to strategic market expansion and building new products and/or accompanying services.
• Perform a strategic analysis focused on the long-term plan and building equity value. Plan a future that will optimize the company’s strategic position while increasing cash flow and equity value.
• Anticipate, plan and organize for the he most likely coming changes to the market.
• Consider starting a second company to compliment the value and products of the current company. For example, if he company is best at a key technology, start a second company to provide accompanying services that will enhance the value of the technology. Having done this, future options open up to either combine the two companies or to let them grow on complimentary paths.

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