Build a big career by thinking small. Part 1

This past week a friend and former colleague called to seek my help on his current project.  He told me that he was the acting COO for a $40 million company composed of franchised restaurants, hotels, and real estate.  The company is profitable and growing rapidly.  My friend went on to say that he is tasked with the responsibility to determine how best to organize this company for rapid growth.  The goal is to make it capable of  growing past $100 million in revenue.  His client's situation is very familiar to me.  It is virtually identical to that faced by the client base I have cultivated during the past five years.  I know exactly where this is headed.  These small but growing companies are emerging through-out the country and represent some very promising career opportunities for entrepreneurial-minded professionals.  These companies are keeping me and a lot of other professionals very busy.

Before the recession of 2008-2009 many major brands in the restaurant franchising segment had begun adjusting their asset allocation strategy.  The goal was to become better positioned to benefit from the overseas potential, particularly in China.  These brands began packaging groups of company-owned restaurants to license new franchisees.  This strategy displaced a lot of corporate marketing and operations professionals who ultimately became a part of those new organizations.  There are a host of new franchised brands that are growing as well, many of which are selling the rights for dozens of outlets to franchisees.  In fact, last year I placed a CFO and a Director of Training and Human Resources for one such company.  With a 20-store development agreement as its nucleus and a couple of independent casual dining concepts, their plan is to become a $100 million company in five to seven years.  At that point the owners will likely cash out and find a quiet beach community to enjoy life.

Unlike their counterparts of an earlier generation, these new small companies can be more nimble with fewer resource requirements.  Many overhead components like accounting and human resources functions can be effectively outsourced.  "Focus on what you do best and let someone else do the rest" is current mantra.  They still need their Generals to craft strategy and their front line soldiers to serve their customers, but administrative staff or middle managers, not so much.  Technology has played a major role in supporting this dynamic.  Government policy has provided additional incentive to keep staffs small.

The current administration has not been kind to small business, however well-poised this sector is for growth.  Major companies are not too excited about adding to their employment base.  College grads are finding it difficult to find entry-level employment.  Private Equity Groups are very active in all sectors of the economy as they help the U.S. in its continued transformation from a post-industrial economy to a high-tech, information-age, knowledge-based economy. Emerging markets overseas will continue to create opportunities.  The revitalization of the U.S. Energy Sector is for real.  These factors and others will continue to define business in the early part of the 21^st century and will benefit small businesses.   There is a lot of pent-up energy that must find an outlet and that energy will likely go into the small, emerging companies.  I am of the firm belief that once it is fully untethered the small business sector will lead the U.S. in economic growth, as it usually has.

This is where the action is.  The savvy professional looking to build a career and personal wealth must consider the entrepreneurial sector.  This sector has been my bread and butter since before the crash.  Most of the searches I have been hired to conduct during this time have been for CFOs, with the occasional CMO, and a CEO or two.  As I said earlier in this post, these companies still need their Chiefs.  The next few post will build on this opportunity, which I suggest you give serious consideration.