There are incredible opportunities for growth, product innovation and robust value creation in the specialty chemicals industry – especially at the level of early-stage and small companies. This is done by broadening products to adjacent areas, expanding customer geographies across the U.S. and world, implementing differentiation strategies and relentlessly recruiting the most brilliant minds in the specialty chemical industry.
All this while maintaining thoughtful integration of Environmental, Social & Governance strategies.
The key is to be calculated in our decision-making by analyzing the growth in end-user demand for products containing specialty chemical products. We have to select products where the market conditions are conducive to growth. Is the current customer demand not being met by current suppliers? Do we have the operational capacity to fulfill these expectations – or is that capacity easily attainable? We also place a lot of weight on environmental considerations and zero-waste product synergies.
If we can manufacture a product that meets new demands and fills a market gap, while decreasing environmental impact, we know we’ve found a good one.
Growth should be managed at a pace that matches the organization’s capability; this is not a rush to the finish line. Product quality and customer satisfaction are paramount. Thorough research, expert development and proactive product management will always be prioritized. The sales team will be well-informed and disciplined. All bases will be covered because, when dealing with such a specialized industry, all unnecessary risks must be avoided.
Entrepreneurs should be aware of the private investment landscape in the specialty chemical industry. Typically, venture capital firms fund startups or new companies, and private equity firms fund growing or mature companies, but there are exceptions to the rule.
It is critical that the entrepreneur can develop a rapport and relationships of trust and partnership with the investor. This will assure that the entrepreneur and investment firm can work through challenging times in a partnership and collaborative manner. And, at the end of the day, employees want to work for companies that have integrity and are focused on true value creation for the long run, which provides security and rewards for them and their families.
The sky is the limit for the entrepreneur and management team that starts with and remains true to the servant’s mindset with respect to their customers.