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CEO Advisor® Newsletter
October 2011
Plan Now to Maximize Profits in 2012

Most small business owners and CEOs plan to grow their business and increase sales and profits. However, there are certain methods companies must use for implementing a growth strategy. The method a company uses to expand its business is largely contingent upon its financial situation, the competition and specific goals of the CEO, as well as other functions. Some common growth strategies in business include market penetration, market expansion, product expansion, diversification and acquisition.

 

Market Penetration 

One growth strategy in business is market penetration. A small business uses a market penetration strategy when it decides to market existing products and services within the same market. The only way to grow using existing products and markets is to increase market share. Market share is the percent of unit and dollar sales a company holds within a certain market vs. all other competitors.

 

Market Expansion 

A market expansion growth strategy involves selling current products and services in new markets. There are several reasons why companies consider a market expansion strategy. First, the competition may be such that there is little room for growth within the current market. If a business does not find new markets for its products, it cannot grow or increase sales or profits - in fact, profits will decline over time. A small business may also use a market expansion strategy if it finds new uses for its product and services.

 

Product Expansion 

A business may also expand its product line or add new features to increase its sales and profits. When small companies employ a product expansion strategy they continue selling within the existing market. A product expansion growth strategy often works well when technology starts to change. A small business may also be forced to add new products as older ones become obsolete. 

 

Diversification 

Growth strategies in business also include diversification, where a small company will sell new products to new markets. This type of strategy can be very risky and companies will need to plan carefully when using a diversification growth strategy. Marketing research is essential because a company will need to determine if customers in the new market will potentially like, need and purchase the new products.

 

Acquisition 

The above strategies focus on organic growth, and most small business owners focus solely on this strategy. Growth strategies in business can also include mergers and acquisitions. With acquisitions, a company purchases another company, or purchases the assets of a company without taking on the liabilities to expand and grow. A small business may also use this type of strategy to expand its product line and enter new markets. 

 

An acquisition growth strategy can be risky, but not as risky as a diversification strategy. One reason is that the products and market are already established. A company must know exactly what it wants to achieve when using an acquisition strategy, mainly because of the investment required to implement it. 

 

CEO Advisor specializes in advising and implementing growth strategies to grow small businesses to the next level. Contact Mark Hartsell today at (949) 759-8676 or email MHartsell@CEOAdvisor.com for a free initial consultation.

Small Business Planning for Growth

CEO Advisor, Inc. (www.CEOAdvisor.com), a leading business advisory firm serving CEOs, presidents and business owners of small and mid-size companies is providing strategy, growth and business advisory services to MedDraft, Inc; an affiliate of Mnet Financial, Inc. in Aliso Viejo, CA. 

 

CEO Advisor, Inc. is a business advisory firm with a hands-on approach to growing businesses to the next level. We provide affordable business advisory services specializing in business strategy and goals, funding, operations, sales strategy, sales team building, marketing, finance, and mergers and acquisitions. 

 

As a trusted CEO Advisor® to business owners since 2004, we focus on driving growth and profits exclusively for business owners in a one-to-one advisory role on a weekly basis. 

 

Mnet Financial, Inc. is a full service provider of collection services for ambulatory surgery centers and hospitals nationwide. MedDraft's suite of payment plans and debt prevention solutions along with its medicalbillpaid.com's online bill pay service give patients access to needed payment options and is highly complimentary to Mnet Financial's collection services. 

 

David Hamilton, CEO of MedDraft and Mnet Financial states, "The regular positive feedback from our satisfied customers has brought us a real sense of accomplishment. It feels right that our next step would be to focus on expanding our MedDraft offer to a broader base of healthcare related companies." 

 

Mark Hartsell, CEO of CEO Advisor, Inc. states, "MedDraft's full range of collection and payment services solves a major issue for both surgery centers and their patients. Our business advisory services are focusing on positioning the company for continued growth and a strategy that will enable them to expand and better serve the healthcare industry." 

 

About CEO Advisor, Inc.

CEO Advisor, Inc. provides business advisory services affordably and effectively to meet the specific needs of CEOs, presidents and business owners of small to mid-size companies in a wide range of industries. 

 

CEO Advisor, Inc.'s mission is to advise business owners with the needed expertise and focus, coupled with hands-on advice and work performed to grow your business to the next level. By specializing in the needs of CEOs, presidents and business owners, we focus on growth, opportunities and challenges that you and your business encounter every day. 

 

Contact CEO Advisor, Inc. today at (949) 759-8676 in So. California, or (301) 580-8071 in the Washington, DC Metro area, by email at info@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information. 

 

Contact MedDraft, Inc. and Mnet Financial, Inc. at (866) 648-4677, by email at sales@MnetFinancial.com or visit them at www.MnetFinancial.comfor more information.

Testimonial  


"As President of a small technology company, I have been pleased with the services provided by my CEO Advisor®. He contributed in many areas, but identified marketing and sales as our primary need. His guidance and contributions have bee invaluable in establishing and maintaining a meaningful marketing and sales program for the company. He is a knowledgeable business advisor and a pleasure to work with."


CEO, President 

Engineering Services/Manufacturing Company

"As a President of a mid-size technology company, I have been very pleased with the services provided by CEO Advisor®. He contributed in many areas, but identified marketing and sales as our primary need. His guidance and contributions have been invaluable in establishing and maintaining a meaningful marketing and sales program for the company. He is a knowledgeable business advisor and a pleasure to work with."
CEO/President, Engineering Services/Manufacturing Company

"As President of a small technology company, I have been very pleased with the services provided by my CEO Advisor®. He contributed in many areas, but identified marketing and sales as our primary need. His guidance and contributions have been invaluable in establishing and maintaining a meaningful marketing and sales program for the company. He is a knowledgeable business advisor and a pleasure to work with." 


CEO, President

Engineering Services/Manufacturing Company



Whether it is growing a business to the next level, turning a distressed company around or preparing a company for an exit, Mark's firm, CEO Advisor, Inc, provides a broad range of services and Mark is there for the CEO every step of the way."

 


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Words of Wisdom



"The significant problems we face cannot be solved by the same level of thinking that created them."


Albert Einstein


Prime Minister of the U.K.