Are you smart aggressive about creating new growth, when things are still going well?
Profits grow, stagnate, shrink. New growth is not replacing or protecting growth - but significant and sustained new growth for the long term.
1. When things are still going well, you're growing into a no-growth zone.
Your company's activities resides with your customers. You focus intensely on their problems. You grow your company and assets and build new assets along the way.
But what grows, eventually will stagnate and shrink. So the question becomes: how close are you actually to inevitable no-growth? Ideally, you aggressively tackle the problem of new growth several years ahead of that point.
2. When things are still going well, you won't realize stagnation until you decline.
Quietly your company's activities move away from your customers towards your own company. You are now focused on internal budgets, internal resources, internal dynamics.
In doing business over several years you established pools of assets, but also liabilities. You stagnate, your competitors don't. The dangerous thing about stagnation is that it is hard to differentiate from and feels like a period of growth.
3. When things are still going well, it is the best time for you to create new growth.
Every company has a unique pattern of hidden assets and liabilities to be leveraged and overcome. Every industry has a unique set of opportunities and constraints.
You have the organizational energy, financial resources, confident employees and most importantly the mindset and 'permission' to realize new growth while you grow. The next best time is now - so the question then becomes: how?
How do the very few companies succeed at creating new growth again and again?
Important: most companies do not try to create new growth at all, or try too little too late, or worse think they are trying but in reality they don't - we are talking how the ones who actually try early on and repeatedly succeed at creating new growth!
1. Not neglecting the old curve nor using it as an excuse to ignore the new.
80/20 Operations: They treat all their customers with quality, but differently. They use tools, technologies and methods to maximize value to their largest most profitable customers.
They minimize cost and complexity in serving small customers. They keep unprofitable segments alive to lock out new competitors. They stay profitable to fund new growth.
2. Innovating the new curve from the customer-back not the R&D center out.
Customer-Back Innovation: They balance the stretch of incremental extensions and next-generation offerings, challenging but achievable. They go beyond spoken needs of customers.
They recognize silent needs before customers can. They are aware that the customer definition and corporate self-definition change and influence each other.
3. Rebalancing assets for the old and the new curve while treating both differently.
Entrepreneurial Execution: They maintain a culture that treats the old as known and the new as unknown, running both at the same time but differently.
They test, learn, nurture, kill new projects as needed. Like entrepreneurs they're impatient for profits and patient for growth, remixing assets, selective capability acquisitions, or partnerships.
This won't happen overnight, but what can you do with your business today?
No 2 companies can expect to follow the same growth plan - but there are moves you can start implementing immediately, built on your current curve to move towards the new curve.
They generate quick gains in revenue and profits in the old curve today AND also moves your company towards the new curve tomorrow. Don't judge them by the profits they generate directly. Their greater value lies in developing new capabilities.
We helped an established old airline increase sales from 27% to 135% in it's most competitive destination. We helped a newcomer digital recruiting platform to go from 0 to 1.5k users in an already crowded industry.
Today's €1M move may become your critical building block that enables tomorrow's €100M new-growth business - we can help you do that, but there is a but:
Please do not approach us, if new growth is not your number 1 priority now.
Ramazan
Uzun
CEO Qiyam
Before approaching us please ask yourself the following questions:
- Why is new growth critical to your company right now?
- And how willing are you to focus on new growth in an integrated way and with the right level of intensity?
© 2023 Qiyam
Animations:
Animation by Ilya Pavlov on LottieFiles:
https://lottiefiles.com/15563-hiring-isometric-animation
Animation by Abdul Latif on LottieFiles:
https://lottiefiles.com/29553-adverting-concept
Animation by Muhammad Tahir:
https://lottiefiles.com/27773-hand-shake-business-deal
Animations by Ussama Razzaq on LottieFiles:
https://lottiefiles.com/26600-under-maintenance-work-in-progress
Animations by UI8 on LottieFiles:
https://lottiefiles.com/17046-teamwork-startup-animations
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Illustrations:
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Thanks a lot to all the great designers from LottieFiles!
Animation by Travis Krause on Lottiefiles:
https://lottiefiles.com/29237-trending-upward?lang=de
Animation by Ilya Pavlov on Lottiefiles:
https://lottiefiles.com/15563-hiring-isometric-animation
Animation by Abdul Latif on Lottiefiles:
https://lottiefiles.com/29553-adverting-concept
Animation by Muhammad Tahir on Lottiefiles:
https://lottiefiles.com/27773-hand-shake-business-deal
Animation by Usama Razzaq on Lottiefiles:
https://lottiefiles.com/26600-under-maintenance-work-in-progress
Animation by UI8 on Lottiefiles:
https://lottiefiles.com/17046-teamwork-startup-animations
Animation by Vule Stefanovic on Lottiefiles:
https://lottiefiles.com/11045-buildin-a-web-page