Other types of growth.
“Flat is the new up.”
In this economy, I’ve been hearing plenty of statements like that — acknowledgements that during the recession (and in the possibly jobless recovery that could follow it), we’re facing a longish while of no-growth or slow-growth markets. In that context, keeping your revenues flat could be seen as a victory, however hollow it might feel to those of us used to growing the top line year after year.
But one thing I’m also hearing from the ambitious businesspeople I know is that they’re committed to growing somehow, even if growing top-line revenue isn’t an option. They’re just looking to other metrics like these:
- gross margin
- net margin
- average selling price
- number of customers
- revenue per employee
- profit per employee
- . . .
Top-line growth is a good thing. In many cases, it might be the best thing. But it’s not the only thing. And if top-line growth is out of reach — heck, even when it shrinks — there are still lots of ways you can grow your business.
If you’ll pursue these alternate avenues for growth while your competition struggles or hunkers down, you’ll be primed and ready to grow every which way, revenue included, as we find our way back to greener economic pastures.
What are you doing to grow YOUR business in ways besides top-line revenue?
~
Photo by Ginny, used under a CC-Share Alike license.
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[...] The other day I talked about the ways that smart companies are growing their profits even when they can’t grow the top line. And past reporting I’ve done suggests to me that many companies — especially in their sales and marketing departments — have wide-open opportunities for growth that arise from the pursuit of higher margins rather than higher revenues above all. [...]
Let me ask this.. Was this country built on service jobs? or was it built entirely on an agricultural bassis? What happens if you employ 100K more government workers? Does it produce more money? What about $100 trillion in federal funds to build roads and bridges? Does that put a dollar in your pocket? Does it make your jar of peanut butter or loaf of bread a dollar cheaper?
Throughout all recorded history, every civilisation that has ever collapsed became totally reliant upon service industry… instead of growing food, and building houses!!! think about it…
Buy 10 trillion dollars worth of seed and distribute it to every farm in the US…
Suddenly employ a million people because the farms can afford it… drop the price of a loaf of bread, and a gallon of milk by a dollar a peice.. Imagine that…