Q: I’m in a very competitive field for pricing. I want to grow my business, but I need help evaluating the current infrastructure.

A: “Infrastructure” is about people and processes. Start by examining your back office procedures. How do you handle transactions such as inventory, accounts receivable, accounts payable, and job costing? Are those processes handled with maximum efficiency?

Next, take a look at your front-end operations. Do you have the talent to help you build increased volume? Does your staff have the right attitude-are they ready to help you change the infrastructure? And are they able to take on more work? How much will you need to increase your sales force to handle the growth you anticipate? What kind of background and talent will the new hires need? What changes are needed in your facility to make it more productive?

You may find that in order to grow your business you need to lower your profit margins. Price out your expected volume and margins, subtracting your fixed overhead to determine your operating profit. You need to identify your drop-dead number-the lowest price you can charge and still have a high enough margin to cover your overhead expenses. Then you can create multiple scenarios, projecting how different prices and profit margins could impact the growth of your business. This process will help you determine which alternative you should carry out.