Welcome to ASK ROCK, a monthly advice column where industry expert Rock LaManna will answer your questions on topics such as: key financials for every business, and how it can lead to profitable organic growth, M&As, strategic alliances, succession plans, and exit strategies. He will also talk about leadership and present family business case studies.
Do you have a question for Rock LaManna and the LaManna Alliance?
You can submit your question here. Your identity will be kept 100% confidential if it’s included in this column, unless you give your permission for it to be public.
Dear Rock,
Many projections for commercial printers indicate flat growth for the near future. Any ideas how I can bring more revenue to the bottom line?
Since 2008, it’s been rough-sledding for commercial printers. The recession and the rise of the Internet have lessened the demand for printed products. However, that by no means it’s time to throw in the towel.
Growth opportunities are out there, but they might involve revisiting your definition of a “growth opportunity.” Here are some examples of how you can grow within a flat-market segment.
Improve your internal processes. Most printers have had to get lean by necessity thanks to the recession, but that doesn’t necessarily mean downsizing. Have you taken a close look at your processes? Have you considered a Quality Management System, in which you could instill quality control throughout your operation?
The commercial printing industry is flat, but it’s not dead. If you’re in a commodity market, then focus on producing the commodity in a more cost-effective way.
Expand through a merger and acquisition. The M&A is the fast-growth tool of bigger corporations. It can also work effectively for you. If you can find a synergistic partner looking to expand operations into your area, an M&A might bring you needed cash reserves while enabling your new partner to tap into your book of business.
Many commercial printers are looking into the converting business, for example, as a means to add complementary services.
Build out new technologies. “New technologies” doesn’t necessarily mean adding a more advanced printing press. It means adapting to emerging markets, such as hydrographics or 3D printing.
Put on your entrepreneurial cap and think back to when your business was in its formative years. Look for market opportunities with double-digit growth. You’re going to have to invest, and reinvent yourself in the process, but it’s the only way to grow. A business cannot sit still. Either you’re growing or you’re falling behind. It’s up to you to decide which it will be.
Recruit and retrain. Top talent can help you improve and reach new heights. Recruit fresh, talented new blood, and don’t forget to retrain, improve and motivate your current team as well.
Rock LaManna is the President and CEO of the LaManna Alliance, a business advisory and consulting firm that helps printing owners and CEOs use their company financials to create successful strategies. He blogs regularly on growth strategies such as mergers and acquisitions within the printing and print-related industry.
