Secrets for Growth
Sustained growth comes through strategy and executing on the basics. Then, calculated risks and focusing on your goals will drive growth and profits.
Shifting from hunker down survival mode to strategy and calculated risk that fuel growth isn't easy. And most companies are simply not able to make the change. Many CEOs have looked to drive out costs, leaving the company even more constrained to growth.
When we asked executives to what extent they exploited their growth potential, more than half said their company was reaching just 50% of its true growth capability. Yet, only a handful know how-or where-to tap into their potential for growth.
What are the Main Barriers to Growth?
Deficient Strategy - 29%
Lack of Leadership - 27%
Operational Gaps - 19%
Lack of Customer Intimacy - 12%
Regulatory Environment - 10%
Economic Downturn - 6%
Downward Product Life Cycle - 5%
Cultural Resistance - 5%
Growth opportunities are everywhere and in every business. So what's the secret to driving growth? The truth is, there isn't just one. CEOs and business owners who achieve superior growth don't possess a secret plan that others lack. They know how to plan a course for long-term growth and then execute it flawlessly. After building a strong foundation, they push their organizations with well planned, calculated risks and innovation that lead to breakthrough growth.
According to Information Week's numerous studies on corporate growth and exploring both short- and long-term growth strategies, they examined 29,000 companies over 14 years and interviewed numerous CEOs. Superior growth is within reach for all companies, in all industries and in all phases of the economic cycle. Moreover, 70% of the growth opportunity available to any company lies in internal factors that are under the CEO's control; only 30% is beyond the company walls.
CEOs and business owners need to better manage business processes, drive sales and marketing, help their companies become more cost-competitive, provide better customer service, launch products and services, and make and integrate acquisitions more efficiently. To do this, they must increase their business and financial skills, and work with other leaders or advisors to develop successful growth strategies. Our research led us to create a four-step model for growth. It begins with relearning, fortifying, and mastering the basics of growth, and culminates with a solid plan for growth. The underlying imperative is simple: You've got to grow, you've got to do it from the ground up, and you've got to get started now.
1. Strategy: Driving growth to the next level.
Many CEOs, presidents and business owners are preoccupied with daily operations. They lack the planning and focus to strategically grow their businesses. But a successful growth strategy should focus on the near-and long-term. This is accomplished through short-term and long-term planning, forecasting and staffing, coupled with strong sales and marketing management and execution. CEO Advisor, Inc. specializes in working with CEOs and small business owners to refine and execute your strategy to maximize growth and profits.
2. Goals: Both Short-term and Long-term.
Strategy and planning for growth requires work on your company. Goals, goal setting in all aspects of business, tracking your goals, and executing on your business plan is critical to your success. If you do not have clear, written goals and a plan for each area of your company, particularly sales and marketing, you are wasting time and money every day. Growth is sacrificed and profits are rarely achievable. Cash becomes the constraint to your growth.
3. Sales and Sales Team Building: This is a key strategic growth issue for all companies.
Sales strategy and the strength of your sales team plays a large role in your growth. Building a sales team with sales goals, a sales plan, an incentive based compensation plan, sales reporting and accountability to close sales and achieve goals is the largest factor in a successful and profitable year. How you manage your sales team is the real secret to success in sales. To discuss your sales team and sales goals, contact Mark Hartsell at CEO Advisor at MHartsell@CEOAdvisor.com today.
4. Pricing: This is a key aspect for building a solid foundation for growth.
Companies have flexibility in setting price structures and they're seeing profits rise as a result provided they deliver on their promise of extremely high quality and service. An important factor in your pricing strategy is your strength in marketing, sales, and level of service. Effective management and execution of sales and marketing are critical factors to growth, and now is the time to review your pricing, margins and sales strategy. CEO Advisor, Inc. has helped many CEOs and small business owners make the needed changes for growth.
5. Organization: Building for success.
As companies shift away from cost cutting, they're discovering that their business models and performance metrics aren't conducive to growth. Implement and execute on the needed changes to drive your growth. As a result, the spotlight is squarely on CEOs and business owners to rejuvenate their organizations and infrastructures. Yet, while organization-oriented growth improvements can account for 25% of a company's future growth potential, they're more difficult to implement than operational strategies. Seek the help you need to implement and execute on the needed changes.
The best CEOs drive their businesses along several dimensions simultaneously to maximize growth and profits. If they stumble, their execution of the basics provides enough stability for them to weather setbacks. Be aggressive with your goals and set realistic timelines to accomplish them. This includes an annual forecast as your primary goals to gauge your success.
What's the right strategy for your company? Seek the advice of a professional to help you plan and execute a growth strategy for you and your company.
CEO Advisor, Inc. has the expertise and experience to grow your business to the next level. Contact CEO Advisor, Inc. today at (949) 759-8676 in So. California, or (301) 580-8071 in the DC Metro area, by email at info@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.