A past client was the president of a major public company. I remember him saying, “Growth hides a lot of operational warts.” This is why growth is such a solid value driver.
Business buyers want to see growth and want to know there are future growth opportunities. Let’s look at some key factors.
- It starts with the people. If the right team is in place, growth is easier to achieve, with proper guidance. Good people allow you to expand your customer base.
- Coasting is a double-edged sword. The seller who’s made a lot of money and isn’t working hard needs to convince a buyer growth is achievable (not that the market is saturated).
- Growth based on price increases (inflationary times) doesn’t mean much compared to selling more units.
- Revenue is not the only metric. Increasing margins is just as important.
Your pipeline of orders, proposals, etc. is a true leading indicator.
It’s not often easy to grow the way you want to. There are plenty of obstacles. External ones include the macro-economic climate, the competition, and government policies. Internal ones include the people, the planning, resources available, and more. If it was easy, every business would grow like crazy.
“Millions long for immortality who do not know what to do with themselves o a rainy Sunday afternoon.” (Author) Susan Ertz
“The amount of sleep required by most people is five minutes more.” (Playwright) Wilson Mizner