Feeding the Growth Gap

Feeding the Growth Gap

At Axiom, we accelerate growth.  We use customer insights, innovation and content to drive growth of our customers’ products and services. The new year approaches and new budgets and fresh business plans are at the ready Below are some simple steps to set the stage for growth in 2017 at your organization.  

  1. Set your business targets 2, 3, 4 or 5 years from today (depending on your business cycle – how long it takes to make a major change or innovation) in sales, share-of market, profits etc.
  2. Calculate what your current products and services, and planned improvements will bring in that time period
  3. Estimate what known investments and new business will generate in that same time
  4. Subtract (2.) and (3.) from (1.) and you have your growth gap

Now, how to feed that growth.

  1. Increase sales of existing products (new sales, new places, new distribution).
  2. Take existing products to new markets
  3. Product improvement (F&B, profitability)
  4. Product repositioning
  5. Product Development (innovation/new products)

Sales and profit growth is fundamentally a transportation problem. As a business manager you are charged with the responsibility of moving sales and profits from their current levels to higher ones over a defined period of time.  Product development is but one of a number of growth vehicles you might choose.  Like any vehicle, it is useless unless it is pointed in the right direction and steered to ensure that it stays on course.

Companies who achieve consistent long-term growth through new product development define how product development relates to other growth vehicles such as “baseline” product growth, new distribution channels for existing products or services, acquisitions, OEM arrangements and licensing agreements.

Growth is not as complicated as it may seem. Best of luck in 2017.

Rob Beachy rbeachy@axiomcom.com

CTO Axiom

No Comments

Post A Comment