Business Strategy & Strategic Growth

Growing Revenue Is Good. Building a More Profitable, Valuable Business Is Better.

Your business may already be successful. You may have:

• $1 million in annual sales

• $5 million in annual sales

• $20 million in annual sales

• Several locations

• Hundreds of employees

• A growing online business

• A manufacturing operation

• A real-estate company

• A professional practice

• A family business

• An opportunity to expand across Canada or internationally

But bigger does not automatically mean better. A company can grow sales while:

• Profit margins fall

• Cash disappears

• Debt increases

• Employees become overwhelmed

• Inventory piles up

• Advertising becomes unprofitable

• Customers become less profitable

• The owner works harder than ever

• Business value fails to increase

That is why you need more than a business idea.

You Need a Business Strategy.

Mackisen helps business owners determine:

• Where should we grow?

• Which products, services or markets deserve investment?

• What should we stop doing?

• Where are we losing money?

• How much capital will growth require?

• How do we increase profit—not simply sales?

• Should we open another location?

• Should we enter the U.S. market?

• Should we acquire a competitor?

• Should we raise financing?

• Should we improve the current business before expanding?

• How can we make the company more valuable?

Then we turn those answers into a practical financial and strategic roadmap.

Start With a 2-Minute Business Growth Review

Check My Business Growth Potential

Or

Ask a CPA About My Business

35+ Years Helping Businesses Make Better Financial Decisions

Mackisen is a Montréal-based CPA, audit, tax and business advisory firm serving entrepreneurs, corporations, real-estate investors and organizations across Quebec and Canada.

Our strategic advantage is simple:

We Don’t Look at Strategy Separately From Your Numbers.

Growth decisions affect:

• Revenue

• Profit

• Tax

• Cash Flow

• Financing

• Employees

• Inventory

• Working Capital

• Business Valuation

• Shareholders

• Risk

That is why our approach connects: Business Strategy + CPA Financial Analysis + CFO Advisory + Tax + Financing + Valuation + Transaction Advisory.

What Is Business Strategy?

Business strategy is your company’s plan for where to compete, how to win and where to invest. Many businesses don’t actually have a strategy. They have activities: they advertise, hire people, buy inventory, open locations, launch products, attend trade shows, build websites and invest in technology. But nobody has clearly answered: “Which activities will actually create the most profitable growth?”

A proper business strategy helps management decide:

• What the company is trying to achieve

• Which markets to focus on

• Which customers are most valuable

• Which products or services deserve investment

• How the company will compete

• What resources are required

• What capital is required

• Which risks must be managed

• Which KPIs will measure success

• What management should prioritize

• What should not receive additional money or attention

Strategy is about making choices. Because every dollar, employee and hour of management time allocated to the wrong opportunity is unavailable for the right one.

What Is Strategic Growth?

Strategic growth means increasing the business in a way that also improves its economics. Growth can come from:

• Selling more to existing customers

• Finding new customers

• Increasing prices

• Improving product mix

• Entering new markets

• Opening new locations

• Launching new products or services

• Expanding online

• Increasing distribution

• Entering the United States

• International expansion

• Franchising

• Licensing

• Strategic partnerships

• Acquiring another business

• Increasing production capacity

• Improving customer retention

But growth should ultimately create: More Revenue. Better Profit. Stronger Cash Flow. Greater Business Value. That is the difference between simply getting bigger and becoming a stronger business.

Real Example: Your Business Has $10 Million in Sales—but Profit Is Falling.

Suppose your company has annual revenue of $10 million. Last year, profit was $1.2 million. This year, revenue increased to $12 million. Great? Maybe not. Suppose profit fell to $700,000. Your company increased revenue by $2 million but lost $500,000 of profit.

What happened? Possible reasons include:

• Discounts increased

• Advertising costs increased

• Employee costs increased

• Gross margins deteriorated

• Freight costs increased

• Low-margin products became a larger part of sales

• Customer acquisition became too expensive

• Inventory losses increased

• Overtime increased

• Interest costs increased

• New customers were less profitable

• Management expanded too quickly

A business-growth consultant should not simply tell you: “Sell more.” The correct question is:

Which Sales Actually Make You Money?

Mackisen can analyze:

• Revenue by division

• Revenue by customer

• Gross margin by product

• Gross margin by service

• Employee costs

• Advertising economics

• Customer-acquisition costs

• Inventory

• Working capital

• Fixed costs

• Debt

• Cash flow

• Contribution margins

• EBITDA

• Break-even point

Then we identify where additional growth creates value—and where it destroys it.

Example: Should You Open a Second Location?

Your first restaurant, clinic, store, warehouse or retail location is successful. You are thinking: “Let’s open another one.” Before signing a lease, Mackisen can help put the numbers behind that decision.

Before Signing a Lease

• How much will the second location cost?

• How much working capital will we need?

• How long until break-even?

• What monthly revenue is required?

• How many employees are required?

• What happens if sales are 20% below forecast?

• Can the first location support the second during startup?

• Should we lease or buy?

• How much financing is appropriate?

• Does management have enough capacity?

• Could opening location #2 damage location #1?

Suppose the investment is $1.5 million. Our job is not to say, “That’s exciting. Do it.” Our job is to determine: Does the financial case make sense?

• Financial projections

• Break-even analysis

• Cash-flow forecasts

• Financing requirements

• Scenario analysis

• Sensitivity analysis

• Profitability forecasts

• Investment-return analysis

Then you make the decision with numbers.

Example: Should You Expand From Montréal to Toronto?

You have a successful Quebec company producing $8 million in annual revenue. Toronto appears attractive, but expansion means more than finding an office.

• Market size

• Competitors

• Pricing

• Customer demand

• Cost of entry

• Employees

• Distribution and logistics

• Sales and marketing costs

• Provincial tax considerations

• Financing

• Working capital

• Management capacity

A market can be large while still being a poor investment for your company. Our market-entry strategy helps answer whether to enter, how to enter, how much to invest, what must happen for success, and when to stop if assumptions prove wrong.

Example: Should You Enter the United States?

Your Canadian business is growing and customers from New York, Florida, California or Texas are asking for your product. The opportunity looks enormous—but U.S. expansion changes the financial picture.

• New competitors

• U.S. pricing

• Distribution and warehousing

• Sales-tax considerations

• Cross-border taxation

• Corporate structure

• Customs

• Currency exposure

• Financing and banking

• Employees and insurance

• Regulatory requirements

• Marketing costs

Mackisen combines business growth strategy with international and cross-border tax plus financial forecasting and financing, so management sees the complete financial picture before committing capital.

Example: Your Advertising Is Growing Sales—but Is It Making Money?

Suppose you spend $100,000 per month on advertising. Your agency tells you sales increased by $300,000. Sounds good—but what are the gross margin, customer-acquisition cost, repeat purchase rate, refunds, fulfillment cost, shipping cost, and contribution margin after advertising?

If $300,000 of additional revenue produces only $60,000 of contribution before a $100,000 advertising bill, you did not create profitable growth. You bought $300,000 of revenue at a loss.

• Customer acquisition cost

• Lifetime customer value

• Conversion rate

• Gross margin

• Contribution margin

• Advertising return

• Repeat purchase rate

• Average transaction value

• Product profitability

• Channel profitability

The objective is not more clicks. The objective is more profitable customers.

Example: Your Company Has Grown From $2 Million to $20 Million

This sounds like success, but systems that worked at $2 million often no longer work at $20 million. The owner may still approve every purchase, manage every employee, speak to every important customer, review every invoice, make every strategic decision, and control every bank payment. Eventually, the owner becomes the bottleneck.

• Management structure

• Delegation

• Department accountability

• Budgeting

• KPI reporting

• Financial dashboards

• Systems and internal controls

• Management meetings

• Forecasting

• Stronger finance functions

• Better operating processes

Sometimes the next growth opportunity isn’t another customer. It is building a company that can handle more customers.

The Biggest Obstacles to Business Growth

1. No Clear Strategy

Management pursues too many opportunities simultaneously, so money and attention are diluted.

2. Revenue Is Confused With Profit

Higher sales look impressive, but if margins deteriorate, additional revenue can make the business weaker.

3. Poor Financial Information

You cannot manage what you cannot see. Management needs timely information on sales, margins, expenses, cash, receivables, inventory, debt, profitability and KPIs.

4. Growth Is Underfunded

Growth consumes cash through inventory, payroll, equipment, marketing, receivables, deposits, new locations and technology. A profitable company can still run out of cash.

5. Pricing Is Wrong

Many owners have never calculated the true cost of delivering their product or service. A 5% pricing improvement can sometimes create more value than chasing 20% additional volume.

6. Wrong Customer Mix

Not every customer is a good customer. Growth should target profitable customers, not customers who demand excessive discounts, pay slowly, consume staff time, generate returns, require customization or produce low margins.

7. Management Cannot Scale

A company cannot grow beyond the capacity of the people managing it.

8. No Execution System

A strategic plan sitting in a PDF is useless. Every important initiative needs an owner, deadline, budget, KPI and expected financial result.

Our Business Strategy & Strategic Growth Services

Strategic Planning

We help owners and management define long-term objectives, business priorities, competitive positioning, strategic initiatives, financial targets, resource allocation, KPIs and execution responsibilities. The result is a practical strategic plan—not a theoretical document nobody uses.

Growth Strategy Consulting

We identify sustainable, profitable growth opportunities including organic growth, new customers, products, services, channels, geographic expansion, online growth, distribution, partnerships, acquisitions and pricing strategy.

Market Entry Strategy

Whether you are considering Montréal, Toronto, another Canadian province, the United States, Europe or Asia, we assess opportunity, market size, competition, economics, investment, financial risk, tax implications, operational requirements, funding needs and profitability.

Profitability & Margin Improvement

More sales are not enough. We analyze pricing, gross margins, product mix, labour, purchasing, overhead, customer profitability, inventory, cost structure and contribution margin.

Business Model & Pricing Strategy

We help answer: What are we actually selling? To whom? Why do they buy? How much should we charge? Which offerings produce the greatest value? Which offerings should we discontinue?

Financial Forecasting & Scenario Planning

Before investing significant money, see what can happen. We model the base case, the upside case, and the downside case—such as revenue coming in 20% below forecast—so management can assess risk before committing capital.

Cash-Flow & Working-Capital Strategy

Growth often requires cash before it generates cash. We forecast receivables, payables, inventory, payroll, debt service, capital expenditures, financing requirements and potential cash shortages.

Business Financing & Growth Capital

A strong strategy may still fail without capital. Mackisen prepares lender-ready projections and financing information for bank loans, lines of credit, equipment financing, acquisitions, commercial financing, working capital and expansion.

Acquisition & M&A Growth Strategy

Buying revenue does not automatically create value. Before an acquisition, ask what the company is worth, whether earnings are sustainable, whether customers will remain, which synergies are realistic, what debt is required, whether the combined company can service it, and what risks or tax implications are hidden in the target.

Commercial & Financial Due Diligence

Before investing millions in an acquisition or expansion, verify the assumptions. We evaluate historical performance, revenue quality, profitability, customer concentration, working capital, financial trends, forecast assumptions, market economics, growth assumptions and business risks. Don’t buy the story before you verify the numbers.

Business Value Creation

A future buyer may focus on EBITDA, recurring revenue, growth, customer concentration, management, margins, cash flow, intellectual property, systems, owner dependence, market position and risk. If you may eventually sell, your growth strategy should also be a business value strategy.

The Mackisen Business Growth System

Step 1 — Diagnose: Where Are You Today?

We examine revenue, profit, cash flow, customers, products, services, markets, employees, operations, debt, management and current growth opportunities.

Step 2 — Understand the Numbers

We analyze revenue trends, gross margins, EBITDA, cost structure, working capital, customer and product profitability, cash flow, break-even point and financial risks.

Step 3 — Find the Best Growth Opportunities

We evaluate opportunities through existing customers, new customers, pricing, products, services, locations, markets, digital channels, distribution, partnerships and acquisitions. Not every opportunity deserves investment. Our goal is to identify opportunities with the strongest potential financial return.

Step 4 — Build the Financial Model

We calculate how much it will cost, how much revenue it could generate, what margin it should produce, how much cash is required, when break-even occurs and what happens when assumptions are wrong.

Step 5 — Build the Funding Strategy

We determine whether growth can be financed through existing cash, operating cash flow, bank debt, lines of credit, equipment financing, acquisition financing, investor capital or another appropriate source.

Step 6 — Create the Strategic Roadmap

Each major initiative gets a priority, financial target, budget, responsible person, deadline and KPI.

Step 7 — Measure & Adjust

Strategy isn’t completed when the presentation ends. Management should compare plan versus actual regularly. If the numbers are wrong, we adjust. If the strategy is working, we scale it.

Who Is This Service For?

Our Business Strategy & Strategic Growth Advisory may be appropriate if your revenue has stopped growing, revenue is growing but profit is not, growth is too fast, cash flow is constantly tight, or the company should be performing better than it is.

• You want to open another location

• You want to enter a new market or expand into the United States

• You want to launch a new product or improve pricing

• You want to improve profitability or need financing for growth

• You are considering buying another company

• You want to increase business value or prepare for sale or succession

• You need a strategic plan for the next 3–5 years

Ask Yourself These 10 Questions

1. Do you know which customers make you the most money?

2. Do you know which products have the highest contribution margin?

3. Do you know your break-even point?

4. Do you have a 12-month cash-flow forecast?

5. Do you know how much working capital growth will require?

6. Does each department have measurable KPIs?

7. Do you have a written 3-year strategic plan?

8. Do you know what your business is worth?

9. Could the company grow without you personally doing more work?

10. Can management explain exactly where the next $1 million of profitable revenue will come from?

If several answers are “No,” you probably don’t need more random initiatives. You need a strategy.

Why Work With Mackisen?

35+ Years of Experience

Mackisen has served business owners and organizations for more than three decades.

Montréal CPA & Audit Expertise

Strategy is stronger when it is supported by reliable financial information. Our team brings accounting, CPA audit and financial-analysis capabilities into business decision-making.

Strategy + Numbers

We don’t separate the business plan from profit, tax, cash flow, financing and valuation. Your strategy has to work financially.

Financing, Valuation & Tax Advisory

If the plan requires capital, we can assess financing requirements and prepare lender-ready information. Our valuation capabilities connect today’s strategy with tomorrow’s business value, while tax planning is considered before expansion, acquisitions or restructuring—not after the transaction.

One Advisory Relationship

Depending on your needs, Mackisen can connect business strategy, CPA advisory, accounting, tax, audit and assurance, business financing, CFO advisory, business valuation, M&A and transaction advisory, and succession and exit planning.

Stop Guessing About Your Next Move. Put the Numbers Behind It.

Maybe you want to grow from $1 million to $3 million, $5 million to $10 million, or $20 million to $50 million. Or perhaps your business is already large enough—but should be more profitable, better managed, better financed, less dependent on you and more valuable.

The first step is understanding where you are today: where the business makes money, where it may be losing money, what may be limiting growth, which opportunities deserve investment, what financing may be required, what management should track, and what the next strategic priorities should be. Take two minutes. It could change the next five years of your business.