The Adventures of Lee The SME Owner - 20.

Chapter 20 - The New Leadership Challenge

Lee stood in the conference room with the management team, a whiteboard filled with ideas behind him. It had been a long process—discussing potential products, refining ideas, and gathering feedback—but today, they were on the verge of something big. This was a pivotal moment for the company. After years of steady progress and recent fine-tuning, they were ready to take a calculated leap forward.

Involving the management team in the discussions had been a conscious decision for Lee. It wasn’t the kind of move he would have made a few years ago—back then, he’d have been more likely to make the call himself. But after everything they’d been through, from supplier reviews to the NPS feedback and the e-NPS work with the team, he knew that real growth came from collaboration.

Now, as they reviewed the feedback from key customers, Lee felt a sense of cautious optimism. The three new products the team had identified were not just “good ideas”—they were realistic, well-considered options that had been validated by real conversations with their customers. It wasn’t just about adding something new for the sake of it. This was about strategic expansion, creating a more comprehensive range of products that would appeal to both existing clients and potential customers they hadn’t yet captured.

John, always the steady voice of reason, had helped guide the process every step of the way.

“Lee, I think you’re on to something here,” John had said. “But remember, it’s not just about making sure the products are right. It’s about making sure the investment makes sense too. Let’s get the numbers right before you pull the trigger.”

The Investment

The figures had been crunched. It would require a significant investment to make this next step happen:

• $250,000 for new equipment, essential for manufacturing the new products.

• Two new team members to handle the increased production.

• An upgrade to the MRP software to better manage the expanded range, which would cost around $40,000.

It was no small outlay, but the team had run the numbers thoroughly. The new products were expected to bring in an additional $1,500,000 in revenue, with an EBIT boost of $225,000. According to their projections, the investment would pay for itself within two years, making it not just a good move, but a vital one for boosting the company's value ahead of Lee’s planned exit.

Lee sat down with John and the management team to review the cost breakdowns and projected sales.

“Alright,” Lee said, leaning forward. “We’ve got the products, the feedback’s good, and we know what it’s going to cost. Do we pull the trigger?”

Bill, the Operations Manager, spoke up first. “The new equipment will be a big shift, but we can handle it. I’m confident that with the two extra team members, we won’t over-stretch. The key is going to be getting the setup right from the start.”

Susan, the Administration Manager, nodded in agreement. “I’ve run the numbers with the MRP upgrade. It’s essential if we’re going to manage this increase in production smoothly. It’s expensive, but it’ll save us headaches down the road.”

Tracey, the Sales and Marketing Manager, looked excited. “I’ve already started talking to a few more clients informally, and they’re interested. If we move forward, I think we can hit the revenue targets without too much trouble.”

Lee glanced at John, who gave a subtle nod. It was clear the team was ready.

The Decision

It was time. After months of preparation and years of experience, Lee was about to make the biggest investment the company had seen in a long time. But for the first time, he didn’t feel like he was doing it alone. The team had shown up, provided their insights, and made sure every angle was considered.

“We’re doing this,” Lee said finally, a determined glint in his eye. “It’s a risk, but it’s the right risk. Let’s move forward.”

There was a sense of collective relief and excitement in the room. The plan was in motion, and the next chapter of the company’s growth was about to begin.

As they wrapped up the meeting, Lee felt a mixture of pride and anticipation. This move wouldn’t just prepare the company for his exit—it would set them up for a future that would outlast his tenure. And that, more than anything, made him feel like he was leaving things in good hands.

John clapped Lee on the back as they left the room. “It’s a big step, mate, but you’re ready for it. And more importantly, the company is ready for it. Let’s make it happen.”

And with that, the wheels were set in motion for the next phase of Lee’s company. The growth, the investment, the teamwork—it was all coming together in a way that would define the future, both for the business and for Lee.