Growth is the problem every business says it wants, until it arrives faster than the business is ready to handle.

For manufacturers and food and beverage companies, more sales can be exciting. More orders can mean stronger revenue, deeper customer relationships, and new opportunities to expand. But growth also has a way of exposing weak spots that were easy to work around when volume was lower.

If orders doubled tomorrow, where would your business break? That question is uncomfortable, but it is also useful. It moves the conversation from 鈥淲ouldn鈥檛 that be a great problem to have?鈥� to 鈥淎re we actually built to support the business we are trying to become?鈥�

Growth Rewards Consistency

Successful growing companies tend to have one thing in common: they are not reinventing the business every day.

They know how work gets done. They know who is responsible for each step. They understand where decisions are made, how pricing is applied, how inventory moves, how customers are served, and what needs to happen when something goes wrong.

That level of consistency does not happen by accident. It comes from disciplined processes, documented procedures, and regular attention from leadership.

In a stable environment, informal processes may seem sufficient. A long-tenured employee knows how to handle a key customer. A production manager knows which supplier to call when inventory is tight. A controller knows the workaround that keeps reports moving. But as volume increases, informal knowledge becomes harder to scale.

What worked when the business was smaller can quickly become a bottleneck when more people, more orders, and more complexity enter the system.

Where Growth Exposes Pressure Points

When a company grows, the first pressure points often appear in the places leaders already know are important but may not have fully formalized.

• Sales channels: Can the sales team continue serving current customers well while pursuing new opportunities?
• Pricing: Is pricing standardized enough to protect profitability as order volume and customer mix change?
• Supply chain: If a key vendor cannot deliver, does the company have alternate channels and clear processes for responding?
• Production and inventory flow: Can product move in and out of the business efficiently at higher volume?
• Training and onboarding: Can new employees learn the job without relying entirely on the person who has 鈥渁lways done it鈥�?
• Internal controls: Are processes designed and operating effectively, or are they dependent on informal habits and individual memory?

None of these areas are flashy. But they are often the difference between profitable growth and chaotic growth.

SOPs Are a Growth Tool – Not Just An Audit Requirement

Standard operating procedures are sometimes treated as paperwork that only matters during an audit or when a problem occurs. But for growing companies, SOPs can be much more valuable than that.

Well-documented procedures protect the knowledge that keeps the business running. They help employees perform work consistently. They make training easier. They give leaders a clearer view of how the business actually operates. And they reduce dependency on any one person.

That matters because every company has some version of tribal knowledge: the unwritten details that live in the minds of experienced employees. When that knowledge is not documented, the business is exposed. If someone retires, takes vacation, changes roles, or leaves unexpectedly, critical know-how can leave with them.

For business owners and decision makers, the goal is not to document every minor task for the sake of documentation. The goal is to protect the processes that preserve quality, support profitability, and keep the company moving when conditions change.

The Cost of Waiting

Many companies delay process documentation because it feels time-consuming, tedious or secondary to more urgent work. That is understandable. SOP projects are rarely at the top of anyone鈥檚 wish list.

But waiting until documentation is required can make the process more expensive and disruptive. Companies often feel the urgency when they are preparing for an audit, seeking additional financing, onboarding a key hire, planning for succession, or entering a due diligence process.

By then, leaders may be trying to capture years of informal knowledge in a short window. What could have been a steady, manageable practice becomes a major undertaking.

The better approach is to treat process discipline as part of building a stronger company, not as a last-minute compliance exercise.

Start With the Areas That Would Hurt Most

If the idea of documenting processes feels overwhelming, start with the areas where disruption would create the greatest risk or cost.

• What process would be hardest to recreate if a key employee left tomorrow?
• Where do we rely most heavily on one person鈥檚 memory or judgment?
• Where would a mistake most directly affect profitability, customer experience or compliance?
• Which processes would come under scrutiny during an audit, lender review or ownership transition?
• If sales doubled, which part of the business would slow us down first?

Those questions can help leaders prioritize the processes most worth documenting first. The result does not need to be perfect on day one. The point is to start building a system that can be updated, improved and used by the people doing the work.

Build for the Business You Want to Become

Strong processes do more than reduce risk. They make growth more achievable. A company with clear procedures can train faster, respond to disruption more consistently, evaluate performance more accurately, and make better decisions. It can also give lenders, buyers, and future leaders more confidence in the strength of the operation.

In other words, SOPs are not just about what the company does today. They are part of preparing the business for what comes next.

So ask the question now, before growth forces the answer: If sales doubled tomorrow, could your business handle it?

If the honest answer is 鈥渘ot yet,鈥� that is not a failure. It is a roadmap. Talk with your business advisors about where process improvements, documentation, and internal controls could help strengthen the company you are building.

Learn more or schedule your consultation with Pinion:

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by Joe Brunner, CPA

Manufacturers are entering a leadership transition unlike anything the industry has faced before. Rather than the 鈥淕reat Resignation鈥� that disrupted many sectors during and after the pandemic, manufacturing is now confronting a 鈥淕reat Retirement.鈥� According to a survey by the , 82% of respondents  are leaving the manufacturing industry because of retirement or health-related reasons.

The numbers behind that shift are hard to ignore. Nearly one-quarter of the U.S. , and an estimated 1.84 million workers are expected to retire in the next five years.

While most workforce studies don鈥檛 isolate executives, the implications for leadership are clear:

• , with roughly 4.1 million Americans turning 65 each year through 2027.
• By 2033, the industry will need 3.8 million new hires, with nearly half those roles at risk of going unfilled.

Because leadership roles tend to skew older than the broader workforce, executive retirements are likely to happen faster 鈥� and earlier 鈥� than many organizations expect.

The takeaway is simple: a significant share of today鈥檚 manufacturing leadership will transition out over the next decade.

That makes succession planning more urgent 鈥� not less.

&苍产蝉辫;鈥�When key leaders exit without a clear transition strategy, the impact is immediate, says Joe Brunner, Pinion鈥檚 lead manufacturing advisor. 鈥�Decision-making slows. Priorities blur. Teams lose direction. Institutional knowledge, customer relationships, and technical expertise can disappear almost overnight.鈥�

The longer-term effects can be even more damaging. Organizations without leadership continuity often lose strategic momentum, becoming reactive instead of intentional. For owners and shareholders, the stakes are higher still 鈥� companies that rely heavily on a few individuals are harder to finance, harder to sell, and more vulnerable during unexpected events.

The takeaway is clear: waiting increases risk. Getting started doesn鈥檛 have to be complicated.

Five Steps to Get Started

1. Clarify Direction Before Choosing Leaders

鈥淭he biggest challenge we see is companies jumping into succession planning before they鈥檝e clearly defined their future goals or the legacy they want to build,鈥� says Brunner.

Without that clarity, succession planning becomes reactive. Organizations may identify potential successors but lack a clear framework for evaluating whether those leaders are equipped to guide the business through its next phase of growth.

For that reason, the most effective succession plans begin with strategy. When leadership has a shared understanding of where the company is headed, it becomes far easier to identify, develop, and prepare the right people to lead it there.

• Treat Succession as a Process, Not a Project

鈥淪uccession planning should not be viewed as a one-time initiative but as a long-term process that evolves with the company and its leadership pipeline,鈥� says Marc Johnson, Pinion鈥檚 lead advisor for equipment dealerships.

That long鈥憈erm view also requires expanding how organizations define succession planning in the first place.

As Donna Funk, lead biofuels advisor at Pinion, notes, 鈥淪uccession planning shouldn鈥檛 stop at the CEO or CFO level. Every role eventually evolves or turns over, so organizations need to think holistically about who might step in across the business.鈥�

• Broaden the Conversation

Some business owners attempt to handle succession planning alone or limit discussions to a small leadership group. But effective succession strategies usually require input from multiple perspectives across the organization.

“A good succession plan is never done in a vacuum,鈥� Brunner says. 鈥淭he process should include a good mix of people from different roles and backgrounds who can challenge assumptions and identify blind spots leadership may not see.”

• Separate Relationships From Readiness

Family鈥憃wned and closely held manufacturers face added complexity when leadership transitions involve relatives. While family involvement can be a strength, leadership decisions must ultimately be grounded in capability and preparedness.

As Bryce Gibbs, lead advisor for food and beverage manufacturers at Pinion, emphasizes, “Companies must be willing to honestly evaluate potential successors 鈥� not by their last name or their bloodline 鈥� but by their leadership capabilities and readiness to guide the company forward.”

• Start Early to Avoid Reactive Decisions

鈥淭he number one thing I tell clients is don鈥檛 wait until you have the perfect solution,鈥� says Funk. 鈥淭he longer you delay trying to perfect the plan, the further behind you鈥檒l fall. The key is simply to start and work through what succession planning needs to look like for each role.鈥�

Delaying succession planning until a retirement or unexpected event forces action often leads to rushed decisions. Leadership transitions typically require 12 to 24 months 鈥� or more 鈥� to transfer responsibilities and develop successors.

Johnson puts it plainly, “Sometimes that proverbial bus comes down the road and companies suddenly need to replace a key executive immediately.”

Looking Ahead

Succession planning done well is not about replacing people. It is about preserving momentum, protecting enterprise value, and preparing the organization for what comes next.

You don鈥檛 need a perfect plan to begin 鈥� but you do need to start.

Ask yourself one question: If a key leader stepped away tomorrow, who would step in 鈥� and how confident are you in that answer?

If that question gives you pause, you鈥檙e not alone. Many manufacturers know succession planning matters 鈥� they just haven鈥檛 taken the first step.

Ready to get started? Connect with a Pinion succession planning expert to start your plan.

| Member since 2014

Pinion is a top-100 U.S. accounting and strategic advisory firm specializing in food and agriculture, with a 90-year history (formerly KCoe Isom). They provide comprehensive consulting鈥攊ncluding tax, sustainability, and policy鈥攖o producers, processors, and agribusinesses, with growing international reach

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What does the future hold for your business? In today鈥檚 rapidly evolving marketplace, everyone is curious about where things are headed. This July, join our Pinion advisors for webinars that explore the latest wave of changes and industry trends that could redefine your business strategy. Stay informed and learn how to prepare for the changes ahead. 

Tuesday, July 9, 2:00 鈥� 3:00 PM CST 

Anticipating 2025 Tax Changes: Insights & Impacts 

Tuesday, July 16, 2:00 鈥� 3:00 PM CST 

Updated Corporate Transparency Requirement: What You Need to Know 鈥� and Do 鈥� Ahead of the Beneficial Ownership Information (BOI) Reporting Deadline 

Tuesday, July 23, 2:00 鈥� 3:00 PM CST 

Economics of the Presidential Election: Trends and Tactics for Your Business 

Tuesday, July 30, 2:00 鈥� 3:00 PM CST 

Driving Success: How to Use KPIs to Grow Your Business 

Can鈥檛 make it to the live webinars, but would still like to hear timely tips from our experts? Registrants will receive a webinar recording following the live session

Below, we鈥檝e highlighted two tax credit opportunities where we notice many manufacturers have 鈥榣eft money on the table,鈥� so to speak. We attribute these oversights to old assumptions and misunderstood parameters and that can easily be rectified with the correct applications.

1: R&D Tax Credit: Easier to Attain than Many Assume
One of the biggest tax credits that manufacturers overlook or do not maximize is the Research and Development (R&D) tax credit. Yet, it is by far the most valuable credit that can be leveraged by manufacturing companies.

As the credit has been around for 40 years, I鈥檝e talked to several individuals in management that believe the credit is not worth their time. There seems to be two consistent reasons as to why they are not taking advantage of the R&D credit today.

The best part about the R&D credit is that most states also offer this credit, meaning that there is the opportunity to get a federal and state tax credit to offset a company’s or individuals (if pass-through) tax liabilities.

2: WOTC: Classifications Often Overlooked Due to Misunderstanding

Another underutilized tax credit is the Work Opportunity Tax Credit (WOTC). With 10 targeted classifications that an employee can fall under to be eligible to receive the credit, employers are often overlooking hiring from specified 鈥楾arget Groups鈥� and missing out on benefits. This classification is easily overlooked, but easy to obtain: Hiring people from an Empowerment zone, Enterprise community, or Renewal community where the company is located.

Have you maxed out your tax benefits? Pinion’s manufacturing-specialized tax advisors can help! Contact Justin Mentele at Justin.Mentele@PinionGlobal.com.

Source:

October 3 @ 1:00 pm: Succession and Legacy: Insights on Plan Successes and Challenges. While it might not be 鈥榬ocket science鈥� in nature, there are often complexities and unknowns that deter businesses from getting started with legacy planning. But every business advisor will tell you the surest way to secure the legacy of your business is to have a strong succession plan.
October 10 @ 1:00 pm: Taxes on Buying & Selling Out-of-State: Best Practices to Mitigate Exposure: Buying and selling products close to home is long gone. State regulators have been ramping up audits and it is imperative for businesses who are exposed to other jurisdictions for taxation to be informed on different types of tax exposure.

For a complete listing of webinars go to: