PR and design business, Clark Communications scaled up in August 2016, going from a two-man operation to an eight-strong team, via the acquisition of a competitor. The deal saw the business grow not only in numbers, but also acquire a Glasgow office, adding to its established Edinburgh base. From initial discussion to signing the deal took a brisk six weeks. But, once the deal was signed, the hard work started… Managing director Lesley Brydon told me what she’s learned.
Don’t scale up for the sake of it.
“Any fast growth activity will eat up your time, and the result needs to be worth it,” she said.”Are the clients a good fit with your business and plans for the future? Does your market offer room for further growth? Is the team right? Can the business afford it? Does the ‘new’ part of your business compliment the old, or will it divide your time to a point where nothing is done well? Rapid growth can be as damaging for a business as it can be beneficial and at this stage, brutal honesty and research is crucial.”
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If your client base doubles or triples overnight, they need looking after throughout the process.
“Bring them with you on the journey, and make sure that either they know things won’t change, or that they stand to benefit from your scaling up,” she said.
“To do this, having a great team that is truly on board is critical. They will provide the continuity your clients need through changing times, and if they are looked after well, and confident in the growing business, the better able they will be to bring clients along too.”
If you’re a small business with one director/shareholder, do not underestimate the workload you will face!
“From scaling up IT and telecoms provision, to making sure the office infrastructure can cope with a bigger team, and getting new clients and people brought into the fold – the ‘to do’ list is suddenly enormous when you scale up quickly, as opposed to organically,” she said.
“It can be overwhelming. The legal process for an acquisition is intense, particularly if you are trying to keep the costs down by doing some of the legwork yourself. Choose good legal and accountancy advisers (get recommendations), and make sure all the people around you are geared up to help in their own way – including paid advisers, mentors, your team (existing and new), and your family who can offer invaluable personal support.
Ordering teaspoons isn’t your priority.
Building a good foundation for the future business is.”
Tell me your scale up story – email [email protected]
Kim McAllister is a Journalist & Communications Consultant and director of Impact Online
