No more cuts to makeBloomberg reported last Monday that companies have essentially wrung all possible profits from cost cutting. "Earnings Growth Disappears as Spending Cuts Hit Limit" they announced1.
And it's not just the F500 - companies of all sizes have embraced a new normal with a sort of hunkered down approach to business development for the last 5 years.
So what if the 80s & 90s were above trend. We're not talking about changing the whole economy, we're talking about invigorating a company's growth.
And yet most just seem to keep doing the same things - the same trade shows, the same direct sales approach, the same target customers in the same markets. You know what Einstein said about that, right?
You simply can't cut your way to growth, and it looks like we've reached the point where you can't cut your way to profits anymore either.
Where would you be?If you had grown your business at a consistent 5% rate since 2007 it would now be 28% larger than it was in 2007. Is yours? And frankly 5% is a much lower number than anyone would have countenanced in 2000. If since 2007 you had grown at a rate of 7% your business would now be 40% larger and at 12% (remember when folks thought that was a reasonable annual growth target?) it would be 175% it's baseline size.
You don't have to answer out loud....but where are you compared to 2007?
75% bigger means more employee hassles, sure. But it probably also means happier conversations with the bank, more potential roles for family to take in the business and, bottom line, more money.
Where are you going?Without engaging in too much "could a, would a, should a" let's focus on what's next. Realistically no substantial change in the broad economy is imminent. (Regardless of where you stand politically, it's not a short term issue.) And whether you are bold enough to target 12 or 20% growth, or even if you would be content with 5%, the fact is you're not going to achieve that by simply maintaining.
So where will you find the growth? There's really two choices. Evolutionary marketing and new markets.
- You can start to market and sell not according to the traditional rule book, but rather as today's markets demand. (Did you realize how out of step your sales and B2B marketing are? Register to receive our upcoming report on The Current Status of B2B Sales & Marketing)
- You can start to sell where the growth is happening rather than where you traditionally have. Export opportunities abound and global business development isn't nearly as difficult as you may have heard.
Now if you have awesome inbound marketing, and/or you're chasing all over the globe signing up channel partners, you are not guaranteed growth. There's a right way to do things, and there's always an element of uncertainty. What's less uncertain is the outcome of doing nothing. (Have you done a risk analysis on that?!)
How to get thereConsilium offers a a huge range of support options for evolving your marketing and prudently tackling new markets. Contact us to learn more.
And in the meantime check out these two eBooks that introduce the topics.
1 - http://www.bloomberg.com/news/2012-10-08/spending-cuts-no-longer-yield-earnings-growth-for-u-s-companies.html