Everyone wants to grow their business…everyone.
And, when that happens, the term that gets thrown around more and more is revenue growth, even if there isn’t anything attached to it.
But revenue growth is actually more than just a fancy way of saying that we are going to make some more money, it is an important metric that can help you understand if you are moving in the right direction…with the help of the proper metrics.
So what does revenue growth should really mean to an enterprise:
1. It should begin by not just meaning top line growth, but should quickly center around improving your overall margin:
In too many instances, “revenue growth” is used interchangeably with just bringing in more revenue without controlling costs.
When you hear someone tell you that they just want to “focus on top line growth.” That is often a clear red flag that the strategy isn’t lined up with a strategy in any meaningful way.
So you always need to make sure you ratchet the revenue growth concept down to a point where it focuses on not just top line revenue growth, but profitable revenue growth.
2. Revenue growth should mean a commitment within the organization to focus on great processes and ideas:
If you aren’t careful, you can throw out the concept of “revenue growth” and have it mean that “we are basically so desperate that we are chasing anything and everything.”
Which is another clear formula for failure.
When you start talking about revenue growth, this should be a clear signal to everyone in the organization that you are going to develop strategies and processes that increase your likelihood of hitting and communicating with the people and companies that are most important to you.
3. Revenue growth should be a sign of a renewed focus in the organization:
Just like you need targets and strategies, revenue growth shouldn’t be an empty promise that you are going to resolve the ills that have fallen upon your organization. Instead, it should be a clear opening for your organization to regain its focus.
How do you regain focus?
You start by acknowledging where you are and where you want to go.
Then you need to really begin the process of focusing on the places, people, and initiatives that will help you deliver on these promises.