“I feel that if my business is not growing, then it must be dying. So I constantly focus on increasing turnover. But it’s hard to do that and protect profitability.”
“We’re good at keeping customers but not so good at getting new ones”
“It feels as though all the new business out there is at low margins – so if we try to grow faster we’ll lose our profitability.”
Profitable growth is the main motive for any business. That’s different from a growth in profits – which can always be achieved in the short term by winning work at lower margins, squeezing overheads or getting people to work harder.
However, these options are not sustainable over the long-term. The best strategies will grow turnover and margins. So how do you strike a balance between managing growth and profit?
It takes concerted effort across the whole of a business. It means reinvesting profits into the business; focusing on the type of customers you want and delivering products or services that satisfy these needs.
It’s about having a clear definition of the market(s) you want to serve and the kind of customers you want to service. This needs to be supported by a sales function that has a systematic approach, is forensic in the use of data and executed by well-trained and motivated people.
By ensuring all opportunities for profitable growth are found and exploited you begin to build real value in your business.
What you can do
- Think about the drivers in your business that create profitable growth
- Understand what a good customer looks like to you and take action to divest of the bad ones
- Invest in developing the right sales approach and in training and developing your sales people
How we can help
- Review the effectiveness of your sales and marketing function – is it fit for purpose?
- We have the tools and techniques to help you unlock profitable growth
- Help you analyse the market and plan for the right way to approach it
- Improve your speed and certainty of progress
Are you thinking what we’re thinking? Get in touch to start the conversation today.
For outcomes to change behaviour has to change and for behaviour to change belief has to change. We’ve gathered a collection of stories, anecdotes and striking expressions to help make the big points about lasting change. Who knows, they may even change your mind. Read more