September 2026 Newsletter
Reactive Management vs Proactive Management and Your Exit Strategy
Management comes in different forms and methods, but you can categorize management into two approaches: Reactive Management and Proactive Management.
Reactive Management
Reactive Management can be necessary at times, but for the most part this approach deals with very expensive and time-consuming issues, which can also substantially decrease your profits and the value of your business.
Reactive Management issues can include an abrupt resignation or death of an executive, a ransomware attack and needed changes due to a major economic recession.
Proactive Management
This type of risk management requires planning and focus in an attempt to pre-empt major issues. We will primarily focus on Proactive Management because you have far more control over issues that you plan for. The planning and execution involved in Proactive Management can yield tremendous results, reduce risk and expenses, increase sales and profits, and substantially increase the value of your business.
CEO Advisor, Inc. focuses on all aspects of growth for its clients and the many aspects of your business that affect growth. The preparation work prior to the sale of a company that we advise and work with clients on tremendously, a) Increases the value of our client’s businesses, and b) Dramatically increases the probability of getting a transaction completed.
Proactive Management includes managing your business to optimize net profits and to prepare for and maximize the value of your company for a future sale. A great majority of your decisions as a CEO or business owner should be on increasing shareholder value. Whether focusing on sales, reducing costs and expenses, optimizing net profits, seeking an acquisition for accelerated growth, or the ultimate sale of your company, Proactive Management is critical to every company.
Selling your company should never be a reactive situation, meaning you are at a big disadvantage if a single prospective buyer contacts you to buy your business. Selling your business should be a planned competitive sale process, whereby you proactively execute an exit strategy, you perform the proper planning and preparation to optimize your value.
Formulating an Exit Strategy is a key aspect of Proactive Management and is greatly needed in order to ensure, 1) You profit handsomely from the fruits of your years of hard work by successfully selling your business, or 2) Successful continuity of your business to execute on your plans, whether to sell now, sell in the future, pass your business on to your family, sell to your employees or sell due to a divorce or health issues, etc.
To discuss your growth plans or your options for a successful Exit Strategy, contact Mark Hartsell, MBA, President of CEO Advisor, Inc. at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
Disclaimer. This article is provided solely for educational and informational purposes. It is not intended for business or other types of advice. The views expressed by CEO Advisor, Inc. reflect general observations on various business issues.
Reactive Management
Reactive Management can be necessary at times, but for the most part this approach deals with very expensive and time-consuming issues, which can also substantially decrease your profits and the value of your business.
Reactive Management issues can include an abrupt resignation or death of an executive, a ransomware attack and needed changes due to a major economic recession.
Proactive Management
This type of risk management requires planning and focus in an attempt to pre-empt major issues. We will primarily focus on Proactive Management because you have far more control over issues that you plan for. The planning and execution involved in Proactive Management can yield tremendous results, reduce risk and expenses, increase sales and profits, and substantially increase the value of your business.
CEO Advisor, Inc. focuses on all aspects of growth for its clients and the many aspects of your business that affect growth. The preparation work prior to the sale of a company that we advise and work with clients on tremendously, a) Increases the value of our client’s businesses, and b) Dramatically increases the probability of getting a transaction completed.
Proactive Management includes managing your business to optimize net profits and to prepare for and maximize the value of your company for a future sale. A great majority of your decisions as a CEO or business owner should be on increasing shareholder value. Whether focusing on sales, reducing costs and expenses, optimizing net profits, seeking an acquisition for accelerated growth, or the ultimate sale of your company, Proactive Management is critical to every company.
Selling your company should never be a reactive situation, meaning you are at a big disadvantage if a single prospective buyer contacts you to buy your business. Selling your business should be a planned competitive sale process, whereby you proactively execute an exit strategy, you perform the proper planning and preparation to optimize your value.
Formulating an Exit Strategy is a key aspect of Proactive Management and is greatly needed in order to ensure, 1) You profit handsomely from the fruits of your years of hard work by successfully selling your business, or 2) Successful continuity of your business to execute on your plans, whether to sell now, sell in the future, pass your business on to your family, sell to your employees or sell due to a divorce or health issues, etc.
To discuss your growth plans or your options for a successful Exit Strategy, contact Mark Hartsell, MBA, President of CEO Advisor, Inc. at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
Disclaimer. This article is provided solely for educational and informational purposes. It is not intended for business or other types of advice. The views expressed by CEO Advisor, Inc. reflect general observations on various business issues.
Top 10 Reasons Tech Companies Fail
When you evaluate the management practices of hundreds of technology companies, here are the primary reasons they fail.
Evaluate your own management decisions and practices and seek help from a business consultant or business advisor to address your specific needs.
1. Lack of Market Focus
Emerging technology companies often do anything possible to generate Revenue and in the process try to be all things to all people. Worried about losing business they avoid segmenting the market and refuse to focus on one to three key vertical markets. As a result, the company is unable to effectively serve any market segments effectively and management is suddenly swamped with support problems and competitors.
2. Undifferentiated Products
Most technology products and services that fail do so because of a lack of differentiation in the marketplace. Successful companies differentiate their products from all other products on the market. Differentiation is possible on the bases of five fundamental factors: function, time utility, problem solved, price and positioning. These five elements are critical to uniquely positioning your products and services to achieve success and profits.
3. Poor Market Research
Many companies routinely perform the wrong type of market research. Statistical surveys of customers alone do not provide the qualitative information that is needed. Because your target audience often relies as much on perceptions as on facts, qualitative research intended to identify existing needs has equal or greater value in assessing, planning and executing a company's marketing strategy.
4. Excessive Product Improvement
Technology products and services are generally used over an extended period of time, are integrated with complementary products and impose learning costs on customers. Customers require time to implement and recover their investment in technology products. The rapid introduction of new and improved versions can make a customer regret a previous purchase, delay all new purchases, and agonize over similar purchases in the future. Additionally, the time and costs related to excessive product development can delay product launches and delay sales opportunities and revenues.
5. Incomplete Products
Customers view products very differently than the technology companies that create or supply them. Technology companies tend to try to sell products on the basis of price, special features and technical specifications. These technical factors are often favored by the engineers who typically run technology companies. The problem is that most customers consider factors such as product support and company reputation to be more important.
6. Failure to Establish the Right Competitive Barriers
Traditional barriers to competition are of little value in the technology industry. Patents can be effective but are very expensive, divulge trade secrets and take years to come to fruition. Conventional techniques are mostly designed to prevent market entry and tend not to work in technology-based businesses. The most effective competitive barriers in technology are the perceptions held by customers and prospects of product differentiation and first to market with a specialization and expertise in a market segment.
7. Using Price Alone to Drive Market Transformation
It is easy to misinterpret the role price plays in the market. And it is a mistake to believe that a technology product or service would be widely used and purchased if its cost was low enough. Price is a function of value and utility, and products and services should be positioned and marketed accordingly.
8. Improper Marketing
Marketing is both an art and a science. Positioning, pricing, sales strategy, target vertical markets and other factors contribute to the success or failure of your products and services and the corresponding sales. A well-crafted marketing plan is critical to success. Improper marketing or lack of marketing can be a product killer or cripple your company as a whole.
9. Sales Mismanagement
There's more to sales management than most companies realize. Specific skills are required to effectively manage each type of sales channel and product line, and those skills must be developed internally starting with an effective direct sales force. Unique management challenges exist for each primary type of sales channel: direct selling, online sales, dealers, OEMs, alliance partners, distributors and value-added resellers (VARs). Seek a business consultant or business advisor to assist you in optimizing your sales strategy as a critical factor in your success.
10. Misinterpretation of the Technology Adoption Lifecycle Model
The primary technology adoption lifecycle model describes the market acceptance of new products in terms of Innovators, Early Adopters, Early Majority, Late Majority, and Laggards. The process of adoption over time is illustrated as a classic normal distribution or "bell curve".
Because the technology adoption model is expressed in terms of a standard bell curve, it means statistically, a random sample of any given market or population must contain: 2.5% Innovators, 13.5% Early Adopters, 34% Early Majority, 34% Late Majority, and 16.0% Laggards. So no matter what industry you tend to be in, there will always be a sequence of adoption by different types of buyers.
To further evaluate your management decisions, grow your business to the next level and increase your sales, margins, profits and value of your company, contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
Disclaimer. This article is provided solely for educational and informational purposes. It is not intended for business or other types of advice. The views expressed by CEO Advisor, Inc. reflect general observations on various business issues.
Evaluate your own management decisions and practices and seek help from a business consultant or business advisor to address your specific needs.
1. Lack of Market Focus
Emerging technology companies often do anything possible to generate Revenue and in the process try to be all things to all people. Worried about losing business they avoid segmenting the market and refuse to focus on one to three key vertical markets. As a result, the company is unable to effectively serve any market segments effectively and management is suddenly swamped with support problems and competitors.
2. Undifferentiated Products
Most technology products and services that fail do so because of a lack of differentiation in the marketplace. Successful companies differentiate their products from all other products on the market. Differentiation is possible on the bases of five fundamental factors: function, time utility, problem solved, price and positioning. These five elements are critical to uniquely positioning your products and services to achieve success and profits.
3. Poor Market Research
Many companies routinely perform the wrong type of market research. Statistical surveys of customers alone do not provide the qualitative information that is needed. Because your target audience often relies as much on perceptions as on facts, qualitative research intended to identify existing needs has equal or greater value in assessing, planning and executing a company's marketing strategy.
4. Excessive Product Improvement
Technology products and services are generally used over an extended period of time, are integrated with complementary products and impose learning costs on customers. Customers require time to implement and recover their investment in technology products. The rapid introduction of new and improved versions can make a customer regret a previous purchase, delay all new purchases, and agonize over similar purchases in the future. Additionally, the time and costs related to excessive product development can delay product launches and delay sales opportunities and revenues.
5. Incomplete Products
Customers view products very differently than the technology companies that create or supply them. Technology companies tend to try to sell products on the basis of price, special features and technical specifications. These technical factors are often favored by the engineers who typically run technology companies. The problem is that most customers consider factors such as product support and company reputation to be more important.
6. Failure to Establish the Right Competitive Barriers
Traditional barriers to competition are of little value in the technology industry. Patents can be effective but are very expensive, divulge trade secrets and take years to come to fruition. Conventional techniques are mostly designed to prevent market entry and tend not to work in technology-based businesses. The most effective competitive barriers in technology are the perceptions held by customers and prospects of product differentiation and first to market with a specialization and expertise in a market segment.
7. Using Price Alone to Drive Market Transformation
It is easy to misinterpret the role price plays in the market. And it is a mistake to believe that a technology product or service would be widely used and purchased if its cost was low enough. Price is a function of value and utility, and products and services should be positioned and marketed accordingly.
8. Improper Marketing
Marketing is both an art and a science. Positioning, pricing, sales strategy, target vertical markets and other factors contribute to the success or failure of your products and services and the corresponding sales. A well-crafted marketing plan is critical to success. Improper marketing or lack of marketing can be a product killer or cripple your company as a whole.
9. Sales Mismanagement
There's more to sales management than most companies realize. Specific skills are required to effectively manage each type of sales channel and product line, and those skills must be developed internally starting with an effective direct sales force. Unique management challenges exist for each primary type of sales channel: direct selling, online sales, dealers, OEMs, alliance partners, distributors and value-added resellers (VARs). Seek a business consultant or business advisor to assist you in optimizing your sales strategy as a critical factor in your success.
10. Misinterpretation of the Technology Adoption Lifecycle Model
The primary technology adoption lifecycle model describes the market acceptance of new products in terms of Innovators, Early Adopters, Early Majority, Late Majority, and Laggards. The process of adoption over time is illustrated as a classic normal distribution or "bell curve".
Because the technology adoption model is expressed in terms of a standard bell curve, it means statistically, a random sample of any given market or population must contain: 2.5% Innovators, 13.5% Early Adopters, 34% Early Majority, 34% Late Majority, and 16.0% Laggards. So no matter what industry you tend to be in, there will always be a sequence of adoption by different types of buyers.
To further evaluate your management decisions, grow your business to the next level and increase your sales, margins, profits and value of your company, contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
Disclaimer. This article is provided solely for educational and informational purposes. It is not intended for business or other types of advice. The views expressed by CEO Advisor, Inc. reflect general observations on various business issues.
Copyright © 2026 CEO Advisor, Inc. All rights reserved.