Opinion: Three choices for sustained growth

As a rule, companies find that sustaining and accelerating growth boils down to three basic choices.

The first choice is to develop a breakthrough product or service that no one else has. There are plenty of examples - Apple's iPad, for a short time at least, was the only product of its kind and has sold in the millions in just a few months.

The second choice is to stand head and shoulders above the rest. It's not necessarily about providing better products than delivering more value for the customer's dollar. The best example of that would be the Dyson vacuum cleaner which took advantage of the weaknesses of other vacuum cleaners that kept losing suction and leaving dust behind.

The final choice for resellers is to target a particular niche, like for example, small to medium sized businesses, the education sector, hospitals and clinics. It doesn't have to be big, it just has to provide lots of return. You become the best provider of a specific offering for a particular market that's willing to pay.

One of the key things entrepreneurs focused on growth need to do is be clear about what growth will mean for them.

They need to understand what growth means for the company in terms of its operations, staffing, facilities and production.

And for many entrepreneurs, it's a case of working out what it means for them personally. How hard are they prepared to work? Will you be working five days a week or six? Accelerating and sustaining growth is not like picking low-hanging fruit.

Another point to focus on is staff. It is important to have the kind of staff and skills in place that will take you where you want to go, not where you are now. It is important to have the right people doing the right jobs, which in turn means being highly strategic in hiring.

Recruiting the best sales and technical teams is important as is having good account managers who know how to work with clients. The reality is that with every service company you need people and skills. Service companies are labour intensive and there are no short cuts here. You need to have people who are prepared to work in the size of company you want to be. They will get you there.

This also means taking good care of staff. Your employees keep you on track and the best companies recognise and reward that. This does not necessarily mean financial rewards either. It can mean more flexible working hours, training opportunities and special projects.

It is important to remember that working in a high-growth organisation can be stressful and challenging. The best employers take note of their employees' work and they respond appropriately. If they fail to do that, they risk losing the talent that turned them into a high-growth company. It is important to create an environment where people are willing to work through the stresses. Some of the best companies have systems in place that ensure their employees are constantly informed and kept in the loop. It is about creating a real partnership with staff.

‘The best high-growth companies say their most important priority is the customer. The great management thinker Peter Drucker said the purpose of every business is to create a customer. No company can do without them and if you don't stay close to them you lose them. It is important to know what they want and then give it to them. This is why high-growth resellers have account managers in there, working with customers and understanding their needs so that they can deliver. It is about creating a long-term partnership.

This raises another strategic question. High-growth companies cull their customers, getting rid of the ones who will not buy that much and who will not provide long term value. It is not uncommon to have the top companies working to the Pareto principle where they get 80 percent of their revenue from the top
20 percent of their customers. It's a model that creates focus and drive.

This leads to the question of not getting distracted. The best high-growth companies draw lines in the sand, knowing they cannot do everything and cannot be all things to all customers. They focus on their core strengths, on what
they are good at.

Diversification has to make business sense. If it has nothing to do with your core business, getting into it because it seems like a good opportunity can siphon away energy and badly needed resources.

Smart companies when faced with this choice will outsource it to another party or they will create an alliance with another which is in that space. It will also confuse customers and employees. Spreading yourself too wide reduces quality and profitability.

High-growth companies also have very close relationships with financiers. But more often than not, resellers grow using their own money. It's high risk and that means watching every cent and managing finances carefully. The upside is total independence.

Next:  Focus, the key to success