ILMA Compoundings - February 2021 - 24

BUSINESS HUB

Driving Growth in 2021
Could Come Down to
Three Critical Factors
By Mandy Patterson

usiness owners and management
teams that are developing strategic plans over the next 12-24
months have more opportunity than
they realize.
As demand for lubricants and
anti-wearing agents ramps up significantly over the next few quarters,
company leaders will face important
decisions about how to navigate the
business challenges ahead. Pivoting
from dramatic low points to planning
for the future will require focus, and
issues related to regulatory compliance,
staffing, and domestic and global supply chains - and the inevitable tax
changes - are already top of mind.
The question now is how to move
from merely surviving to looking
ahead and planning for long-term
success. Here are a few considerations
that might be useful as you develop
your company's strategic plan over the
next few months and years.
1. Viewing COVID-19 as an opportunity. The uncertainty and confusion surrounding COVID-19 has
had a direct and profound impact
on businesses. Although periods
of market turmoil can be painful,
they can also be the catalyst for
extraordinary opportunity. While
some companies focus exclusively
on dealing with internal challenges
during periods of macroeconomic
stress, others intuitively look at

FEBRUARY 2021

| COMPOUNDINGS | ILMA.ORG

the landscape and recognize that
opportunities exist. These include
capturing market share through
new channels, including online
sales, expansion into new markets
or even acquiring competitors
that might offer a complementary
product or geographic advantages.
The question for most businesses is,
" How do I make bold (but prudent)
moves when my own business is
stuck in a flat or down cycle? "
2. Embracing a growth mindset.
The same skill set required to run
a successful business does not
necessarily correspond with the
knowledge required to scale a
business. Savvy owners and managers intuitively understand how
to succeed within the ecosystem
they control, with that experience
often painstakingly built over
many years. However, this may
be the core reason why growth
opportunities are often missed,
particularly if some possibilities
seem so bold as to be unrealistic.
Organizing strategic goals, arranging for financing and initiating
partnership discussions are all
examples of challenges that may
require specialized skill sets. Even
for seasoned executives, there may
be different levels of comfort in
managing a business versus scaling a business. In many cases, it

makes sense to partner specifically
for this purpose.
3. Developing new financing relationships. Many business owners
are not aware that they have options when it comes to financing
growth. Banking relationships
are critical and can be the reason
why some businesses thrive and
others struggle. Limitations
arise when considering strategic

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ILMA Compoundings - February 2021

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