Alfried Taftazani’s Post

Is your growth real or just to attract investors? I’ve seen many companies excitedly predict growth, projecting from 10% to 50% year-on-year and aiming for unicorn-level valuations. But before setting those big targets, ask yourself: What will it take to get there, and is it worth it? Growth isn’t just about increasing sales; it requires the right infrastructure, capacity, and resources to support it. I’ve worked with companies that trying to secure funding, only to find that scaling up meant unexpected costs, more hiring, increased production, better logistics. These costs can eat up cash faster than expected if not carefully planned for. The result? Cash flow pressures, a business struggling to keep pace with its ambitions, and, even worse, the loss of investor confidence when the company fails to deliver on its promises. It’s important to remember that sometimes, rapid growth can even destroy value if the ROI isn’t high or the business isn’t capital efficient. When planning your growth: • Understand your ROI: Will your investment in growth yield enough returns to make it worthwhile? • Evaluate capital efficiency: Can your business sustain growth without excessive capital? • Include growth costs in your valuation: Know what it takes to move from point A to point B and factor these expenses into your plan. You might discover that certain growth projections could reduce long-term value instead of creating it. Is your growth plan ready for a reality check? Let’s discuss. #GrowthStrategy #InvestorTrust #SustainableBusiness #FinancialPlanning #FractionalCFO

Our latest research on business growth highlights key insights from successful companies. It shows that achieving sustainable growth comes down to making strategic decisions and investing time and money in the right areas. We found that a company’s optimal growth path is highly dependent on its starting point. By understanding their unique position, businesses can make smarter choices to unlock growth opportunities #bcg #growth #strategy https://lnkd.in/gXhAg5i2

An interesting relationship between two strategic frameworks the Ansoff matrix and the Doyles growth ladder that guide businesses on how to grow. The later usually builds on the foundational concept of the formal Doyle’s Growth Ladder can be viewed as an actionable version of Ansoff’s Matrix, suggesting a pathway for companies to proceed through stages methodically. Both frameworks serve as valuable tools for strategizing growth Listed below are their alignments and differences: Shared Growth Steps: Both frameworks guide companies through similar stages: starting with Market Penetration (growing in your current market), moving to Market Development (expanding to new markets), then Product Development (creating new products), and finally Diversification (developing new products for new markets). Different Approaches: Risk Focus: Ansoff’s Matrix takes a close look at risk levels at each stage, while Doyle’s Ladder emphasizes gradual growth, advising companies to build on each step. Sequential Path: Doyle’s Ladder suggests moving through each stage in sequence, whereas Ansoff’s Matrix allows for flexibility, encouraging businesses to tackle multiple strategies if they have the resources. In short, Doyle’s Growth Ladder builds on Ansoff’s ideas by offering a structured, step-by-step approach that’s especially useful for companies looking for a clear, logical growth path.

"I don't get how your Growth Spheres model is different from the 3 Horizons." I’ve been asked this question multiple times since launching my new business framework. In short: the 3 Horizons model is just that — horizons in the distance. It’s purely theoretical. In reality, most organizations undervalue Horizons 2 and 3 (where are the results?), strip them of resources, or stop working on them altogether. Our research shows that, unfortunately, 𝐥𝐞𝐬𝐬 𝐭𝐡𝐚𝐧 𝐨𝐧𝐞-𝐭𝐡𝐢𝐫𝐝 𝐨𝐟 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐞𝐯𝐞𝐫 𝐚𝐜𝐡𝐢𝐞𝐯𝐞 𝐚𝐧𝐲𝐭𝐡𝐢𝐧𝐠 𝐬𝐮𝐛𝐬𝐭𝐚𝐧𝐭𝐢𝐚𝐥 𝐛𝐞𝐲𝐨𝐧𝐝 𝐇𝐨𝐫𝐢𝐳𝐨𝐧 1. Why? Because the 3 Horizons model overlooks the most powerful force in large organizations: GRAVITY. Gravity, created by the core of every organization, pulls resources, attention, and prioritization back to the core business. It’s no surprise that consultants — who’ve never felt this gravity themselves — didn’t account for it. Since it’s invisible, they couldn’t see it or understand its implications. The consequences of relying on an incomplete model are profound: 🚫 It’s pointless to "create options on H3." Unless you’re an R&D- or tech-driven company, 𝘏3 𝘰𝘱𝘵𝘪𝘰𝘯𝘴 𝘢𝘳𝘦 𝘯𝘰𝘵 𝘷𝘪𝘢𝘣𝘭𝘦 by default. This misunderstanding has led many companies to make poor, self-deceiving decisions — like misguided CVC investments. ✅ The solution? Recognize gravity and organize deliberately. Adjacent growth initiatives must be protected from the pull of the core, especially during annual budgeting cycles, to stand a chance.𝐒𝐮𝐜𝐜𝐞𝐬𝐬𝐟𝐮𝐥 𝐠𝐫𝐨𝐰𝐭𝐡 𝐬𝐭𝐞𝐦𝐬 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐧𝐝 𝐩𝐫𝐞𝐬𝐞𝐧𝐭-𝐝𝐚𝐲 𝐠𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞, 𝐧𝐨𝐭 𝐝𝐢𝐬𝐭𝐚𝐧𝐭 𝐡𝐨𝐩𝐞𝐬 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞. Instead of explaining further, let me show you what I mean. Check out our framework, Unstuck, for the full breakdown: https://lnkd.in/gHn6FxfS.

Everyone's chasing after rapid growth like it’s the Holy Grail of business. Why? Because conventional wisdom tells us that bigger means better; growth equals success. It’s alluring, no doubt. We crave the numbers, the accolades, and the apparent security that comes with high growth figures. But here's the kicker: this relentless pursuit can lead to disastrous pitfalls. Most companies fall into the trap of unrealistic projections, relying on spreadsheets that simplify complex realities into neat little rows and columns. Let’s get real—most growth happens in unpredictable waves, not in straight lines. The challenge is that these fanciful financial forecasts often blind leaders to the messy truth of their actual capabilities. Now, what if we flipped the script? Instead of chasing unrealistic growth targets, why not embrace the idea of sustainable, managed growth? This alternative approach encourages businesses to align their goals with a realistic assessment of what their current operations can achieve. It emphasizes the importance of innovating or acquiring strategically, rather than simply inflating expectations based on wishful thinking. However, this isn’t without its challenges. Misdirection can occur when companies become overly cautious, stifling innovation and limiting their potential. Balancing caution with ambition is key but tough to navigate. So, here’s the blend: leverage the ambitious spirit of growth while grounding your strategy in reality. Set achievable milestones that allow for incremental progress. For example, implement new offerings that address real customer needs instead of abstract growth goals. Create feedback loops that reflect actual market behavior and adjust your targets accordingly. This approach allows you to capitalize on moments of explosive growth while minimizing the risk of chasing after numbers that don’t reflect your true potential. You get the best of both worlds—you stay motivated while also being honest about what’s doable. If you’re ready to rethink your growth strategy in a balanced way, tune into 5 Minute Founders, where you can digest the essence of full business books in five minutes or less. Start thinking big, but stay grounded.

People & businesses are always hesitant when it comes to growth. Because growth means they have to change their habits. Because growth means more responsibility & more risk. but if an organisation doesnt grow, it will eventually decrease & die. The market is a cruel place. If you dont evolve you fall behind and the best businesses can take your customers. Embrace growth before it is too late 🚀

Delivering consistent growth year in and year out is one of the hardest things a company can do. Investing in a growth system is the answer, but where should you start? Check out what Paul Blase and Paul Leinwand have to share.

Navigating Growth – Strategies for Sustainable Growth In today’s dynamic business landscape, navigating growth is critical for long-term success. This insightful article, contributed by RVKS And Associates, Chartered Accountants, explores the significance of growth amid uncertainties, the need for sustainable strategies, and the importance of execution and monitoring to ensure organizational success. With globalization, rapid technological advances, and geopolitical shifts shaping the market, adaptability is key. Growth isn't just an option—it’s essential for businesses to thrive, maintain relevance, and capture new opportunities. Read the full article: https://lnkd.in/dtNjAmfa

Having worked first as an investor and now as an operator, I've seen myself change the way I talk about growth. When I was an investor, I talked about growth rates. Because that's how investors are measured. Lots of investment funds target 20% returns. A great way to generate 20% returns is to invest in companies growing 20%. Add in multiple expansion and perhaps some leverage, and you can do even better. When I started as an operator, I continued to talk growth rates. But here's where I got myself into trouble. Companies don't operate on growth rates. They operate on absolute dollar growth. An example. A company with $1 million of revenue growing at 30% needs to add $300,000 of revenue in the first year. However, to continue growing 30%, it needs to grow ( $1 million + $300,000 ) x 30% = $390,000 the next year. That's why, as an operator, I talk about dollar growth. Telling an organization we want to grow 30% again this year makes it sound like we just need to do the same as we did last year. Telling an organization we need to grow $390,000 this year, compared to $300,000 last year, makes it clear we need to be doing more.

Sustainable growth: Why you need to find the balance between expansion and stability 🌱 Problem: Many companies strive for rapid growth but overlook the importance of stability and sustainability. Overly aggressive expansion can lead to financial constraints, resource overload and ultimately a decline in long-term success. Why it matters: Sustainable growth means expanding the business at a pace that is both financially and organizationally sustainable. 🔎 This involves carefully planning expansions, ensuring sufficient resources and preserving company values. Companies that grow sustainably are more resilient to market fluctuations and are better able to respond to long-term opportunities. Personal benefits: For CEOs and founders, sustainable growth is key to creating a stable and resilient business. 💸 Through a balanced strategy, they can minimize risk, protect the company's reputation and remain successful in the long term. Sustainability is not only good for the environment, but also for business - it promotes stability and trust among all stakeholders.