One of the universal truths in the revenue growth business is the seemingly random glass ceilings preventing further growth that companies of all types experience at certain levels of revenue. The most impenetrable one I have seen is at the $10M revenue mark – an inflection point.
Imagine my surprise (and sense of validation) when I saw an Inc magazine article about how many companies are stuck at the $10M revenue mark.
The article goes through many ways they can jump-start growth in their businesses, but one stuck out prominently for me:
Here’s the statistic that hit hard – 90% of CEOs in sub $10M companies have no idea what their company is truly worth or more importantly how the value of their company is created or measured.
CEOs, who have spent virtually every waking hour thinking about their company, planning the next moves of their company, and executing those moves well enough to reach the $10M revenue mark have no idea how their company’s value was or is created!
And my experience is that that lack of knowledge extends to many CEOs of companies all the way up to $100M in revenue. Think about all of the money being left on the table because the CEO doesn’t have the knowledge of what is really working nor the strategy for leverage how to leverage the company’s true value to their customer!
I recently concluded an assignment with a sub-$10M skin care company that doubled their revenue to over $10M in just one year. How? By diving deep to determine their company’s true value proposition, and working with the CEO and COO to leverage that value proposition into the operational outcomes that create heightened company value.
That’s the secret.
It all starts with the core value proposition. All of the other pathways to growth flow from that value proposition. It is the value proposition that creates outcomes where the whole is greater than the sum of its parts – the prescription for value creation.
That is the principal behind Inflection Point Partners! We understand how to align the company to create value, produce efficiency and drive demand so that companies can break through their inflection point into a whole new trajectory of growth.
You can read more about an inflection point here.
About the Author:
Mark Jaffe is a technology, consumer products and entertainment executive whose Inflection Point practice enables manufacturing and technology companies, as well as other product or service companies, to achieve breakthrough revenue growth with sustainable profits from a foundation of sound strategic analysis and innovation.
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