What would happen to your life as a business owner/CEO if your company experienced real, exponential growth?
I’ve talked about the Revenue Flywheel concept before—meaning that small, incremental improvements in an organization’s sales, marketing, hiring process, platforms, training and other important areas can “move a heavy flywheel” until it starts rolling along with little effort.
Growth becomes exponential once the revenue engine starts humming as long as the system continues to make incremental improvements.
The challenge lies in discovering what exactly should be improved. One can lose focus and become overwhelmed.
The secret is this: work out what the ideal should look like, and work backwards from the biggest challenges you can tackle at any given moment. If you cannot tackle the worst thing, say a lack of capital, then you might at least address a poor sales process.
That little nudge of the flywheel will lead to better performance, more revenue and eventual interest from investors and banks to solve your liquidity problem.
And now with more cash you can address your other issues, such as investing in a bigger facility or hiring more support staff. You become much more attractive to potential buyers.
Trying to tackle it all at once can lead to inaction because ITS TOO MUCH. Work incrementally.
We worked with a logistics company that was struggling to scale.
The temptation was to charge in and just crank out “better” and more marketing to get a flood of prospects. They were swinging for the fences and hoping that a BIG SINGLE CHANGE would fix everything.
However, when we assessed the problems they were having, we discovered that their marketing was really not the biggest issue.
Instead, we discovered that leads were simply being wasted.
What they really needed was more salespeople. In addition, they needed Sales Development Reps, sales coordinators, and support staff for these salespeople.
This moved the flywheel considerably.
However, other issues then surfaced:
- Their CRM dashboards weren’t useful, so the CRM wasn’t used much.
- They were narrowly focused on a couple of successful niches and needed to diversity their client base.
- The best practices and hard-won knowledge on how to run the business was all in the founder’s head rather than in training manuals and videos. Everyone relied on him for answers, and this made scaling impossible.
We addressed these issues incrementally, working from the biggest backwards. We recruited and trained salespeople and support staff. We fixed the CRM to capture and display the lead data in a way that was meaningful. They expanded to untapped industries for clients. And we documented everything so that training occurred while the founder focused on expanding the business.
Each incremental improvement led to better revenue and their revenue flywheel finally gained enough impetus to roll along – all the way into a currently high valuation.
They are presently under due diligence for a very handsome exit. Their investment banker told us our work increased the multiple by 3 times and doubled the EBITDA, yielding a potential triple!
To sum up the key to exponential growth:
- Research the problem to get real, unbiased data.
- Identify the actual problem(s) and not mere opinions of what is wrong.
- Get bright ideas and research the best practices to solve the problem(s).
- Implement the solutions incrementally, starting with the most feasible and impactful.
This incremental, data-based approach is why we have not had one single customer who failed to grow using our methodology in the past 10 years. And why we offer a 100 percent guarantee.
Would love to do the same for your business and MAKE YOU RICH! Let’s chat. – Shaun