Knowing will help you focus your investments to build company worth
As you are thinking about building your company to be sold one day to deliver you a euphoric exit event, a gift to give yourself today is knowing what your company’s primary strategic growth need is for at least the near term. This may change over time, but you want to be thinking strategically on a regular basis about where to focus your growth energies.
There are only 4 ways to grow a company and the MPPH model helps you think about it:
- Market: Is your market, your sandbox, that your company plays in today large enough to meet your growth requirements? If yes, then Market isn’t a growth barrier for you. If no, then it’s an opportunity to think about submarkets or adjacent markets to enable growth.
- Product: Is your product or service portfolio broad and deep enough to meet your customer/client needs? For some businesses, their growth is limited by the limits of their offering so they need to expand it and bring more solutions to their existing customers.
- Presence: Does your company brand and market coverage give you enough presence, or access to your target customers and clients? Do users of your product or service know your company even exists? If your target customers and clients already know to call you then Presence is already strong for you. But if there are large parts of the market where there are buyers for your offering and they don’t know you exist, then Presence might be your strategic growth opportunity.
- Hit: What is your hit (or win) rate and is it above, below or at your industry norms? Leadership teams often focus on finding new leads but they are layering new leads on to a bad sales process…meaning, if they fixed their follow up and sales process to improve their hit rate, they might see meaningful growth from leads they are already getting.
Don’t play whack-a-mole with your company’s growth strategy. Know which aspects of the MPPH model need your focus. Knowing this and focusing could accelerate your building of company worth.
