Is your growth profitable? [infographic]
Virtually every business owner, CEO or Executive Director that I’ve ever met is focused on “growth” as part of their strategic objectives. As the old saying goes, if you’re not growing you’re shrinking.
What I’ve come to realize over the years through working with clients around North America is that the only growth that truly matters is “Profitable Growth.” Put in a different way, focusing on growing a business or association without considering how to ensure the growth results in significant and sustained profits is simply a waste.
In the infographic below you’ll notice that achieving Profitable Growth is based on two factors:
1. The value the product or service provides to it’s customers.
2. The margin achieved in the sale of the product or service.
If Value is Low and Margins are Low, the business is on decline.
If Value is High but Margins are Low, you have more business with declining profitability.
If Value is Low and Margins are High, the business is stagnant and flat.
If Value is High and Margins are High, you have profitable growth.
Question: Considering your products or services, are you focused on profitable growth? If not, what adjustments are necessary to move your into a Profitable Growth state?
© Shawn Casemore 2014. All rights reserved.
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