Why Great Companies Need To Grow Revenue

Jan 15, 2020 | Strategy

Yesterday morning at Dallas Love Field, I crossed paths with a guy I know who leads a sales team for a $10 million company. Over breakfast at Cantina Laredo (love this place!) I shared my concept behind the Revenue Growth Engine.

We talked about his team and their revenue growth. “Darrell, we’re OK at net-new, but cross-selling… we get too busy and good intentions rarely happen.”

I hear this over and over again from businesses. They are good at net-new business but struggle to cross-sell.

Probing further, I asked, “Why do you think that is?”

“We just get caught up in the day-to-day fires taking care of our customers.”

There it is. In the attempt to provide great customer service, cross-selling goes to the bottom of the list and rarely gets done.

As a result, this company is only growing in the low single digits.

Here’s the problem with this. I happen to know of the owner of this company. He’s a great person. He cares deeply for his employees, creating a good work environment. He also is a giver, generously supporting his church and other local non-profits.

I also know of my friends who work for large, faceless companies. These companies RIF employees at will, discarding them like yesterday’s trash when they need to pad the earnings. The only time they give back is for positive PR.

Good companies need to grow—they must grow. As they do, they create great jobs in good work environments. They provide for the churches and non-profits that make our world better.

So, why was my friend’s company not growing? What stood in the way of their best intentions to cross-sell? Two things: Strategy and Execution.

STRATEGY

Growing revenue doesn’t magically happen. Growth requires a strategy. This strategy needs to have two components: net-new business and cross-selling current clients. The strategy should align marketing and sales. Revenue Growth Engine provides the roadmap for this strategy.

EXECUTION

To grow, you must execute consistently. In the case of this company, poor operational execution ended up hurting their sales efforts, hence the flat growth. To fix this, I recommended the Entrepreneurial Operating System as outlined in the book Traction by Gino Wickman. Applying these principles supports consistent execution company-wide, freeing up bandwidth to be proactive at net-new AND cross-selling. These operational principles can also be applied to drive marketing and sales excellence as you deploy your Revenue Growth Engine. Plus, these operational principles will help the company handle the (good) issues that come with growth!

WHAT ABOUT YOU?

How is your company doing? Is your revenue growth in the single digits or low teens? If so, what’s holding you back? Do you have a revenue growth strategy? Are you good at execution?

When great companies fix these two issues, they grow. This creates new jobs and more opportunities for existing employees. It generates cash flow that can fuel local non-profits.

Are you ready to grow? Let’s get to work building and fine-tuning your Revenue Growth Engine!

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We help companies that use EOS® create and execute revenue growth plans so they can hit the 1, 3, and 10 Targets™ on their V/TO®.

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