Organic Growth Is A Mugs Game: Accelerate Your Growth Now

Organic Growth Is A Mugs Game: Accelerate Your Growth Now

So, what’s “Organic Growth”; Organic growth is the gradual growth in a company’s revenue through the slow and steady acquisition of new customers with a limited budget.

This slow and steady approach is common in old school businesses that lack the knowledge and capital to grow rapidly. I know I founded my first business this way decades ago, and it was a damn hard struggle trying to drive growth using small increases in revenue to fund sales and marketing.

It’s common to see businesses like these with limited funds to spend on the important areas that drive revenue, areas like sales, marketing and product development; this typifies organic growth.

These businesses are in effect capital constrained which is the main cause of organic growth, the investment community sometimes refers to this as being “under capitalised”. Which leaves few alternatives other than raising capital.

Now if you had capital in your company and could spend an extra million dollars on sales, marketing and advancing your product I’m sure you would be achieving more rapid growth maybe even 20% a month.

Wouldn’t that be a significantly better outcome?

The other reason why you might need to raise capital is you might be in an industry or a sector where you have competition that is rapidly coming up behind. You don’t want to be overtaken by your competition, which means you need to grow quicker than your competition and to do that you need capital. Organic growth is probably going to see you wiped out by your competition.

Let’s look at two examples.

Company X is a 3 year old small business with 100 customers, X is consistently picking up one new customer a month with a small budget for sales and marketing based on existing revenue. So each year Company X adds 12 customers which is a 12% annual growth rate. Now this is okay for a lifestyle business and organic growth but bad for a business or Startup if you want to exit for millions.

Company Y is a 2 year old Startup with 50 customers, X is consistently picking up five customers a month with a $800k budget for sales and marketing funded by a Series A investment. So, each year Company Y adds 60 customers which is a 120% annual growth rate.

Company Y will overtake Company X in its third year.

So organic growth is a mugs game because your limiting your growth and therefore you need to raise capital.

Furthermore, if your product is online, cloud, software as a service or in a high technology sector, your market is advancing, innovating and growing at higher than average rate

The days of slow organic growth are over, rapid advances in technology are enabling companies to quickly grow and service more customers with less effort. Artificial Intelligence is a prime example of this, if you haven’t heard, it’s going to impact every industry in the coming decade. This is not a bad thing, you can use it to your advantage by developing a smarter sales and marketing strategy using technology.

Bottom line those raising capital have more money to spend than those that do not. Which means you have little choice but to raise capital to not only secure your market but to grow your revenue before your competitive advantage evaporates and your competition overruns your market position.

Don’t even think about organic growth, it’s a mugs game.
Take the smarter path to success and start planning your capital raise now.

9 Keys to an Unstoppable Phone Prospecting Strategy

The Art of Managing a Sales Team

Leading a sales team is hard–it can be difficult to strike the right balance between encouraging top performance and overwhelming sales reps with impossible goals. Your success as a sales manager hinges on your team’s ability to perform well, but it can often feel like their performance is out of your control.

While of course it’s true to a certain extent that you can’t force skill into an untalented rep, there are certain steps you can take to set your team up so that under performers are more likely to excel. Read on for three surefire ways to set your reps up for success:

Set the Right Tone for an Environment of Excellence

In my career, as both a salesperson and a manager, I’ve consistently found that people generally conform to the expectations you set for them. If you act like a task is impossible, they’ll fail to deliver. If you act like reps are destined to underperform, they will. If, on the other hand, you set high expectations from the start, it’s more likely your team will rise to the occasion and meet them.

That doesn’t mean that you need to apply intense pressure in order to see results. Studies consistently find that the most successful salespeople feel happy, supported and positively reinforced. The best approach is to establish a culture where high goals are clearly articulated and meeting them is expected. Your job from there is making your team feel they have the capacity to achieve those goals.

It can be tempting to make excuses for reps who are underperforming, but holding them accountable for meeting their quota goals is better for them too, in the long run. Instead of going easier on reps who struggle, work with them to figure out what they need to do to meet their goals and outline a plan of attack.

Be a Leader Who Inspires High Performance

Sales is definitely a field where managers need to lead by example.   Read the full version from the author’s website.