- Are you too concentrated in a single industry or asset class?
- How much of the market in any asset/industry do you have?
- How much opportunity is in the market of any asset/industry you want?
- What is your strategy to enter new segments?
- How do you determine if a new asset class if right for you?
- How are you evolving your business development effort?
- What is the right amount of sales staff to have for your growth strategy?
- Do you even have a growth strategy, or just a “hope” of growing?
Success happens accidentally to some. But not to most and hope is not a strategy. Most people have to grind, innovate and lead through the cycles. And you just can’t do that being a transaction based, hot asset class chasing, deal doer. So few equipment finance companies really plan on how to attack their business. That fact might explain the lack of innovation, evolution and even the ability to attract and retain younger talent over the years. For most, lack of planning is akin to preparing to fail…especially as the cycle turns down.
Transport Topics says new equipment orders are down 48%. The glut of oil oversupply and the fictional Chinese growth of recent years are starting to catch up with our over-exuberate economic measures and the consistent string of growth in corporate earnings founded more on cutting than real growth through innovation. Add a presidential election with a few leading candidates saying scary things and guess what…confidence is shaking. Credit is tightening. And the economy really boils down to credit and confidence. We’ve been here before and your life is about to change in the equipment finance business. Are you ready?
Equipment finance companies often just chase the hot industry of the moment and as long as deal flow is there today…hey, why worry over tomorrow? I don’t know…maybe because the economy has essentially repeated these cycles for a HUNDRED YEARS. Remember, when the recession is announced…we’ve basically been there for 6 months already. So don’t wait. Find your answers to the growth questions that scare you.
A slower economy is coming (if not already here). Build a real plan for success through the cycles and if you ever wanna chat…give us a holler. We can help.