Issue link: https://read.dmtmag.com/i/306360
www.BoatingIndustry.com 32 | Boating Industry | May 2014 Multi-store survivors on growing wisely, and knowing when to say no BY TOM KAISER m arine is a mature industry in a growing economy, currently undergoing a welcome period of expansion and consolidation after the re- cent thinning of the herd. This is the time in the cycle when more business owners pull the trigger on long-awaited retirements, growth-minded entrepreneurs take risks to expand and dealership groups strategically add to their empires. With breathing room between the depths of the Great Recession and the present, deal- ership valuations have recovered much or all of their pre-recession losses. For those con- sidering purchasing an existing business, the market is far beyond the bottom-out, fi re-sale prices of 2009-2010, yet this period of recov- ery is already being defi ned by moves to con- solidate and expand. Such times tempt business owners who have kicked around the idea of undertaking a signifi cant expansion to an existing store, or taking a bigger leap to add a second, third or fourth location. Expansion isn't for everyone, though, and those with experience strongly caution fence sitters to weigh the decision with extreme cau- tion. Are you happy with where your business currently is at? Do you have a specifi c goal in mind for expansion? And, quite practically, what would it be like to split your time be- tween multiple locations? No matter whether you decide to take a small step, dive into a growth spurt or stay put, considering your options is a healthy pro- cess. We've talked to a few experts who have been there for their take on knowing when it's time to grow, and when the best move is not moving at all. Rethink your desire It's a phrase more often used among children, but business owners considering major growth need to ask themselves: "Are you sure you want to do this?" If the answer is yes, the logi- cal follow-up is: "Why?" There are many reasons to expand, like seizing a timely opportunity, moving into a coveted geographic area or gaining access to a new product line, but owners need to exam- ine whether they feel coaxed into expanding solely for the sake of growing — it sounds like progress. Those who have traveled down this road speak a different tune, and urge serious refl ection before making an expensive move that may not be easily undone. "In today's world where growth and consolidation is being forced upon us as the industries are maturing, these guys know in their gut that they've got to grow, but they don't always know why or what it really means until they get there," said John Spader, president of Spader Business Management. "Then they get there and they don't like it — Time to Time to grow? The Boat House celebrates the grand opening of its 154-space dry dock at its original location in Cape Coral, Florida. P32x36-BI14MAY-TimetoGrow.indd 32 4/17/14 10:46 AM