Kick Start your company’s Growth Management Part 1
Last Updated on June 28, 2022 by
This i the first step of three in the series Kick Start your company’s Growth Management! The goal with this step is to create an understanding of your business goals and translate them into growth goals like Target Growth Rate and Growth Formula.
Are you a startup with 3 people in the growth team or a brand new team of 8 people in a larger company that has been commissioned to start up the growth organization? Regardless of size and experience, we always recommend doing a solid growth review to get a good start on your journey towards sustainable growth.
Start by looking at what the results looked like for you in the past and where you are now. Revenue is the most common measure for growth, so we recommend using it.
Growth Rate is the increase or decrease in revenue between two periods. Your Target Growth rate is where you need to be every month to be able to reach your revenue target at the end of the year.
Furthermore, you can use a gap analysis to compare your forecast with the goal to see how big the gap is between where you are and where you should be. This difference in growth rate is called the Gap Growth rate. Read more about it here!
We recommend that you break down the user journey into a growth formula for the growth team to work with. Think about the formula as a way to represent the steps a user has to take to create value/revenue for you. As a growth formula is built out and becomes more complex it is usually called a growth system.
Why is this important?
It can be incredibly difficult to know how to approach an annual goal. How do you know which activities generate the most value and where to start? This will be a first step on your growth journey. If done properly and with everybody’s buy in you and your team will have a great foundation to stand on.
Other articles in the series “Kick Start your company’s Growth Management”: