What inhibits revenue growth?

Daenerys green screen

I disagree with the Friedman doctrine because companies can grow and improve the society at the same time. Growing and helping has been proven to be an effective growth strategy. Tesla is an example.

However, the main metric of a company is still its financial growth. Money can not be the main goal of a company but it is the best metric because price is a biggest decision factor for customers and paying for products is the strongest proof of value acceptance. Revenue shows how much customers accept the company, its products, and its values.

While measuring growth by measuring revenue is easy, understanding why the company does not grow is much more difficult. Here are the three main inhibitors of growth:

Lack of focus on customers
Company team members can start to think about everything except their customers who are usually right in front of them. They think about competitors, market changes, news, internal relationships, abstract metrics, tools, but neglect to learn about and deeply understand their customers. The bigger and richer the company is, the more it can be disconnected from the customers.

No roadmap
Roadmaps always fail. Plans always fail. They never come true as we imagined them. But their purpose is not to tell us what to do but to tell us that we need to do something together to reach the goal. Company will not grow without the whole team working together somehow. Having a roadmap for growth, even if it appears unrealistic and abstract, makes a big difference in focusing all team members towards growth.

Doubting each other
Best example of how doubt can ruin companies is that Apple fired Steve Jobs. There is always someone better out there, but the people in the team are the best we have and they should be treated as such. Doubt towards fellow team members is the biggest waste of energy. It is a hidden problem inside teams which slowly eats the resources and hinders growth. When trust increases everything starts to move faster.

The biggest step towards fixing these three problems is recognizing them as problems. Once they are accepted as relevant problems and prioritized over hundreds of other problems companies experience daily, the company will find its own way to fix them and grow.

Written by: Nikola Tosic
Publishing date: 29 Mar 2019