Succession Northwest uses tried and true tactics from major corporate strategy, finance, and operations to position companies for long-term success: a value creation playbook. The Playbook has five key components:
1. First, Do No Harm
- An attractive "Main Street" business has proven that it knows what its doing. It has customers who repeatedly buy the product/service, loyal employees, and positive relationships with vendors and suppliers.
- Succession Northwest's first goal is to stabilize operations post-acquisition. Put simply: if it ain't broke, we don't fix it.
2. Build a Cash Culture
- Cash is the lifeblood of any business. Succession Northwest will quickly implement cash management best practices including a thirteen-week cash flow statement, minimum cash balances and reserves, and regular days cash on hand reporting.
- The principles that get distressed business out of trouble can be applied to make healthy companies better. Robust cash management is central to this, and will be a priority of all Succession Northwest portfolio companies.
3. Improve Processes, Cost Structure, & Profitability
- Too many companies attempt to execute lofty growth ambitions without making sure that growth is scalable, efficient, and profitable (and end up breaking Rule #1 above).
- Succession Northwest will document and optimize all the functions that make the business run, providing short-term improvements to profitability and building a long-term infrastructure for scalable growth.
4. Pursue Growth
- Only a stabilized, cash-based, highly efficient business is truly ready to grow.
- Once Rules 1-3 above are complete, Succession Northwest companies will execute both "low hanging fruit" (price increases, increased sales & marketing budget) and "big bet" (new products/services, re-branding, acquisitions) growth opportunities.
5. Share the Wealth
- Once companies have achieved their vision, key employees will be encouraged to take on larger leadership and possibly ownership roles