Welcome to the inaugural issue of my new newsletter, “The Triple Double.”
I’ve written this newsletter to help business leaders of mid-market companies (and those who want to become mid-market companies) to double their revenue, profit, and valuation.
Why do I focus on helping organizations achieve a financial Triple Double?
Figure 1: The Triple Double™
Business leaders too often focus on one goal only. Most commonly, they look for big revenue growth. If they grow revenue, they think, all their problems will be solved.
Now revenue growth is a great goal. It’s a goal they should indeed pursue. But growing revenue alone can doom a company. How?
A company’s exclusive focus on revenue growth can stretch its resources, overwhelm its production capacity, stress its employees, and alienates its best customers. The company ends up chasing new customers rather than taking care of the ones they have already — and so begins a vicious revenue-chasing cycle.
If a single focus, especially a single revenue focus, isn’t the way to go, what is? You need to grow three financial measures simultaneously: your revenue, your profits, and your valuation.
Growing each at the same time acts as an accelerant and a safe-guard.
Strengthening all three simultaneously acts as an accelerant, because they’re interrelated and interdependent. Each supports the continued strengthening of the others. Strengthening all three acts as a safe-guard, because it maintains balance.
Let me give you an example of how this all works.
A few weeks ago, I had lunch with Dale and Teresa Hensrud, owners of Industrial Scale Ltd. Decades ago, they were my very first consulting client! When I asked them how they had achieved their impressive triple-double, Dale said, “This may sound too simple to be true, but it was all about our customer service.”
When your customer service is awesome, you retain more customers. Those customers will refer others. This drives top line revenue.
Due to increased customer loyalty and a service gap with your competitors, this reduces price pressure and helps increase profit.
Revenue growth (especially recurring revenues) and profit growth, combined with business systems and a strong management team, will increase valuation.
That’s in part how Industrial Scale achieved its Triple Double. How will you create yours?
A tip: Don’t wait for your best customers to place an order. Go see them and ask them how you can help them grow their business. Their success becomes your success.
Much more on this later.
Thanks for reading!
P.S. Please share this newsletter.
Contact Phil
For more information on how Phil can help you achieve The Triple Double in your business, call 306-992-6177 or email him.
