Kinky Boots, the currently touring popular Broadway musical, is based on a true story. When I saw it recently, I was not only entertained by an engaging, heartwarming story. I was also struck by an uncanny parallel to the real world of middle market companies that the firm I am part of, Newport Board Group, is involved in every day.
The following is an excerpt from an article from AllBusiness.com by Jeff Bernel and Michael Evans.
To stay in business and have a chance to generate wealth for themselves, most entrepreneurs have to be good negotiators. They have the most to gain or lose in any deal, are calculated risk takers, have the vision of what their company stands for and also have an innate sense of how to be creative and structure a deal. But most importantly, they have high aspirations and the drive to expect more out of every transaction. Their egos and financial well-being demand they deal astutely and get as much as they can from each exchange. When the company is starting out, they’re the ones responsible for negotiating with vendors, customers and service providers alike. They pre-set a high bar for results—a key piece of the culture of the firm they are trying to build.
Newport Board Group Managing Director and Board Member Michael Evans took part in a webinar on March 12 sponsored by Del Morgan & Co., a Los Angeles-based investment bank. Michael shared the presentation with other prominent professionals who are regularly involved in M&A transactions with family businesses. They included an accountant, lawyer, investment banker and an HR consultant from a leading HR outsourcing firm.
Perhaps the most important rule of business is that maximizing profits requires increasing revenues while reducing business costs. Simple enough to say but difficult to implement especially when you are an emerging growth company (such as our firm, Newport Board Group, specializes in advising) and you lack strong pricing and purchasing power. As revenues increase, the tendency of businesses is to add workers, acquire new technology, and increase inventories. However, many companies grow themselves out of business by diverting cash into fixed assets and inventory investments in anticipation of expanding sales.
The Enterprise Center at Salem State University in Peabody,MA (near Boston) will be the setting for a distinctive, high impact executive learning event on March 26th from 11:00 – 2:30. This event will be taking place at the Peabody Marriott, which is located at 8A Enterprise Drive in Peabody.
Newport Board Group partner Oscar Rospigliosi recently took part in a session of the WorldCity’s CEO Club in Miami about how to sell premium U.S. brands in Latin America.
Newport Board Group partner and retail industry expert Helen Bulwik was recently quoted in the San Francisco Bay Area media about a recent development in the mobility-powered disruption of traditional industries that is happening across the economy.
In an earlier blog, I presented a general approach for manufacturing companies to reduce costs. I would like now to apply this approach to specific areas of corporate expenditure, starting with legal costs. This is a good place to start because making changes to save money on legal costs tend to be less disruptive than other kinds of cost reduction. Most middle market companies use a national law firm or at the very least one of some size. This usually makes sense. If the company gets involved in litigation, patent work, IPO or corporate organization it is helpful to be represented by a firm that has specialists who can address a wide range of issues. Big firms have high overhead and their billing tends to look as follows:
One objective of middle market companies that never changes is to constantly reduce their costs and thereby improve their bottom line and cash retention. Manufacturing companies need to take a different approach to service provider costs. Here’s how.
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