What Does Scale Bring?
In this issue
5 Benefits from a larger scale operation
In 319 words less than a 2 minute read.
Hooray for SONOS who is seeking an IPO at $3B. Their 5 strategies for the next level are now public information. The future seems bright for them.
In coaching our group, we explored a similar but different exercise asking: What is missing in a sub $50M Revenue CI organization?
A few items came to the forefront when considering the impact of a central value added organization serving 15, 30 or even 75 or 100 locations. It’s more than more people and more revenue; it’s about conducting the business differently.
Training & People Development including consistent Sales Process and Shared Expertise Resources for certain
The ability to own the partner channel in a way unseen so far. This makes the evergreen component of our business even greener.
Significant cost reductions in everything from volume purchases, to business insurance, health plans, vehicles and more.
Productivity gains in operational areas where billing efficiency and alleviation of local duties provides more bandwidth.
Pick up of underperforming product categories. Yes every business has one or two. At a larger mass, these are complete upsides.
Ok. Ok. Enough said; there are numerous upticks in a well-orchestrated larger organization. And their impacts on growth and profitability are potentially profound.
Are these capable of sustaining 15%-20% CAGR (compounded annual growth) and 20% sustained operating profits? We think so.
The magic still happens at the local level where relationships and service remains king.
The key lynchpin becomes of course the people, the leadership and their ability to affect a culture centered on clients and personal development of professionals committed to excellence for the long term.
Without this, the best plans of mice and men fail.
Add an investment mechanism for owner/operators to cash in on the value being created and VIOLA! You have a new generation of organizational prowess and a future Billion Dollar game changer.
Meanwhile Stay VITAL,