In the 08/11/2005 edition of ExecutiveBiz we had a chance to catch up with Andrew Sherman, Co-Founder of Grow Fast Grow Right.

ExecutiveBiz: Why have you focused your entire career on emerging growth and middle-market companies?

Andrew Sherman: The experience of being an entrepreneur and having been through some difficult times made me realize that my life's work was going to be helping entrepreneurs and companies as a writer and a teacher, as well as a lawyer. In 20 years of working with companies, no day has ever been the same. If I'm not advising and teaching, I'm learning. I have served as advisor to dozens of Fortune 500 companies, but with the emerging growth and middle-market companies I get to work directly with decision makers and owners. They know I care as much about their businesses as they do.

ExecutiveBiz: Why did you launch Grow Fast Grow Right?

Andrew Sherman: GFGR was built to provide world-class education in business growth strategies. It's based on my 14 books, 18 years of teaching, and 21 years of serving as a legal and strategic advisor to growing companies on the development and execution of effective growth strategies. I've spent the better part of my professional life helping all sizes and types of companies develop strategies to build their businesses. I've observed that all companies want to grow in one way or another, We really exist to help our seminar attendees make that happen.

ExecutiveBiz: What do you see as the greatest growth challenges for emerging companies?

Andrew Sherman: Business growth is truly a double-edged sword. When controlled and well-managed, it has the tremendous reward potential, but if it's poorly planned and uncontrolled, it often leads to financial difficulty and failure. The need to grow must be tempered by the need to understand that meaningful, long-term, profitable growth is the by-product of effective management and planning. Without achieving this balance, the company is vulnerable to negative or distracting external forces.

ExecutiveBiz: What growth strategies are working in today's recovering economy?

Andrew Sherman: There are a wide range of strategies at work in today's economy. Successful growth requires a strong foundation before deciding on a given strategy like M&A, Franchising & Licensing, or leveraging Intellectual Capital. The key is taking time with the preparation and planning, and executing according to plan. One example is outsourced services. Many companies have experienced dramatic growth over the past four years by offering a full range of research, development and manufacturing services, remaining focused on a single growth model.

ExecutiveBiz: What does effective growth management involve?

Andrew Sherman: Effective growth management involves understanding why the company wants to grow. Objectives need to be defined up front and management has to understand the challenges and risks that rapid growth poses. A growth management process should be implemented to respond to the company's current growth stage. It is critical though to understand that the foundation has to be in place first.

ExecutiveBiz: What is the most important factor when trying to achieve growth in a business?

Andrew Sherman: Momentum. Leaders must make sure systems are in place to gauge progress. Management needs to establish benchmarks and milestones to measure against. A loss of momentum can hurt the strategy and can get in the way of raising additional rounds of capital or getting access to needed resources. Measuring performance against benchmarks and a leadership focused on maintaining high employee motivation and strong customer relationships will rarely lose momentum.

ExecutiveBiz: What internal factors can effect business growth?

Andrew Sherman: First are costs and revenues. You have to examine every part of your business and ask questions. Is revenue rising or falling? How about profit margin? Which divisions or departments stand out? Why? Do you enjoy a strong positive cash flow? Second is personnel. Do certain employees show exceptional skills or produce outstanding results? Where in the company is the strongest management, organization and planning? Do you have the talent on staff to handle anticipated growth, or would you have to hire new personnel? You also need to look at your company philosophy. Is there a written statement describing your company's mission? Does it define the essence of your business exactly so that you know which kinds of activities fit your company's goals and which don't? Are you diluting your resources by engaging in any activities outside your mission? As an owner or CEO, you must ask yourself these questions to make sure that you are being 100% efficient on your path to growing your business.

About Andrew Sherman

Andrew J. Sherman is co-founder and Chief Educational Officer of Grow Fast Grow Right Enterprises, LLC, as well as a Partner in the Washington, D.C. law offices of Dickstein Shapiro Morin & Oshinsky LLP. Mr. Sherman is a recognized international authority on the legal and strategic issues affecting small and growing companies and is an Adjunct Professor in the MBA programs at the University of Maryland and Georgetown University where he teaches courses on business growth, capital formation and entrepreneurship. Mr. Sherman has also been General Counsel to Young Entrepreneurs' Organization since 1987. Mr. Sherman's recent venture is Grow Fast Grow Right, an education and training company for executives of emerging growth and middle market companies (www.growfastgrowright.com). A prolific author, Mr. Sherman has written fourteen books on the legal and strategic aspects of business growth and capital formation including The Complete Guide to Running and Growing A Business (Random House, 1997), Mergers and Acquisitions: A Strategic and Financial Guide for Buyers and Sellers (AMACOM, 1998), Raising Capital 2nd Edition (AMACOM, 2005), and Fast Track Business Growth (Kiplinger's, 2002). Mr. Sherman can be reached at 1-866-GRO-RITE or by e-mail at Andrew@growfastgrowright.com.