Blueprint to a Billion
General Notes
- Inflection for growth to $1b = $50m
- Path to $1b is either 4, 6 or 12 years after inflection, or else you will never reach $1b
- “Self correction” is the key to actually reaching $1b
- At the inflection point ($50m), the change in revenue stabilizes and the velocity of revenue spikes (escape velocity of revenue).
- We will go from 223 revenue growing companies to 800 in 2016 and then will hit the next downturn (and it will be worse - so he says).
- Revenue drives earnings. The hard part is revenue.
- Focus on the customer and never lose faith in your ability to solve their problem (customer - customer marketing, not advertising)
- Leadership pairs (Head and Heart) with one voice. Sometimes called (inside - outside)
- Listen to your competitors customers
- Your Marquee customers will introduce you to your Big Brother relationships.
- Link the 7 essentials to create positive feedback loops that drive exponential growth
- Priorities and time management are key… Get away from Brute Force management. Flip management from Brute Force to alignment.
Characteristics of Growth Companies:
- Growth rate = 27%
- Double R&D investment to renew products and services
- Increasing cash flow to achieve growth stability
- Debt/Equity <22%
- Deep relationships with top customers will drive top growth companies
7 Essentials: (need 5 or more of these essentials)
- Way better value to customers (Create, Redefine, Optimize)
- High growth market segment
- Marquee Customers (disproportional number of sales, growing themselves, will help you grow your company)
- Big brother alliances
- Exponential returns
- Inside - outside leadership
- Board with essentials experts
7 Stars
- Revenue
- Profit
- Capital Efficiency
- Employee Productivity & Efficiency
- Industry Rank
- Consistency
- Momentum