Overcoming Barriers to Revenue Growth 2013 Strategy Planning
Overcoming Barriers to Revenue Growth in 2013 Tough Questions to Consider Planning for 2013 -------------------------------------------------------------------------- How does your brand rank? Do your sales KPIs outperform the competition? What new sources of revenue will be developed in 2013?
Revenue Strategies for GrowthBarriers to Revenue GrowthWhile resources constraints do exist (both talent and capital are the two primary reasons managers cite forslow growth); in 2013 as the market further bifurcates into leaders and laggards the biggest barrier to growth isa company’s reputation and its availability of a portfolio of solutions to ensure a pipeline of future recurringrevenues from its customers. Overcoming Resource ConstraintsThe market will be bifurcated into market leaders andlaggards as capital is limited to the best brands in each History has proven that during difficult economicsector. In today’s capital constrained market, having a climates, leaders can create significant wealth by taking full advantage of opportunities at therevenue model that outperforms competitors and strategics expense of their underperforming counterparts.is a requirement for software and service companies. Strategies for Revenue Growth Expansion:Did you know that? 1. Utilize brand endorsers to improve your 6 out of 10 businesses will be gone by 2014. brand’s reputation. Only 1% will return 10X ROI to employees and 2. Actively participate and increase investment in founders. your top 2 communities (create a referral Today, buyers buy from brands. Did you know that ecosystem). brand leaders outperform the competition 3 to 1X. 3. Productize services into branded solutions and create industry pre-configured solutions.Barriers to Revenue Growth by the NumbersRevenue Success KPI Metrics: 4. Use strategic partners and 3rd party agents to generate new business. 5. Initiate co-marketing programs with strategic alliance partners. 6. Leverage LinkedIn and other social campaigns for referrals and lead generation. 7. Be known and recognized as a business which is a “receptacle” of talent and capabilities (via agents, alliances, acquisitions). While resource constraints limit growth, as the famous quote says, “Hope is Not a Strategy.” Knowing precisely where the organization is headed, and having all employees “rowing in the same direction” is a key success attribute of enterprises that create wealth. Defining the major milestones of the operating plan and financial forecast for 2013 is critical such that all employees know the extent of the progress (or lack thereof) and whether they should “row harder” or celebrate. Ephor Group | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
Revenue Strategies for Growth Overcoming Resources Constraints & Barriers to Revenue Growth#1. Portfolio Solutions Expansion. For established market leaders, growth is a factor of expansion (both geographic and solution). Portfolio Solutions CRM example Portfolio Solutions IT services example#2. Alternative Distribution Channels. Identify and sign strategic channel partners and strategic alliances to validate multiple “routes to market”.#3 Portfolio of Revenue Sources (Cost Per Lead $). Cost of $1.00 of Revenues Varies by Channel: Portfolio of Marketing Lead Sources Reduces Program Costs: Ephor Group | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
Revenue Strategies for GrowthWhy Ephor Group?Whether you are looking to expand into new markets, roll out a new product/service, or simply seeking toaccelerate sales growth; identifying active revenue opportunities is key to prioritizing your sales resources.The status quo for many organizations is a siloed approach –marketing buys contacts, sales buys leads and this results induplication of information while wasting precious time, resourcesand productivity. But the difference between a weak brand and abranded sector leader can be seen in the operating performanceof the company.Outcomes created working with Ephor Group: Validated GoToMarket strategy for revenue growht beyond organic direct sales with account intelligence at its core.The “New Economy” will no doubt challenge the best of minds andbusinesses. Accelerating revenue growth starts with actionableintelligence about your target market. Our experience had taught us that a “holistic” expansion of revenuesources creates the most effective outcomes, while creating the foundation for long-term wealth creation. Ofcourse, expansion is never easy, and does not happen overnight.With Ephor you get…Experienced Deep industry expertise as investors & operators in software and BPO services.Team Expertise includes strategic expertise and GoToMarket specialists.Relationship Senior partner supported by team of specialists.Approach Fully integrated service to our clients.Strong Advisory Strong institutional relationships providing both distribution and usefulCapabilities capital. Advice based on comprehensive industry and deal experience and knowledge.Focused We only work in areas where we have created wealth, and know the industryStrategy dynamics and players. We are highly selective. We select two (2) companies per year.Integrated Go-To-Market coordination of programs for revenue growth. | Grow beyond organic.Services GoToMarket Research | Identify top opportunities before competitors. Expansion Strategies: Portfolio/Global/Distribution. | Multiple “Routes to market.” M&A Intelligence Research Services | Know before you go. M&A Corporate Development | Acquisition operational integration. Useful Capital | Growth capital advise on corporate strategy. Ephor Group | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
Revenue Strategies for Growth Beating the Odds When You ExpandDid you know that expansion is risky? 85% of expansion plans fail to achieve ROI within the first years. 2 out of 3 of expansion plans are abandoned within six months.Effective managers aren’t cowboys; they are methodical managers of risk. At every turnprudent managers reduce risk before making any significant investment or action. For example, presale new products or to new markets to ensure cash flow profitability. Tackle the right risks first such as confirming Demand & Pricing Elasticity before spending any dollars on marketing or operations.When risks are removed, value is increased. Not all risks need to be removed, simply the mostuncertain coupled with the most costly. All plans are partly right and partly wrong;experimentation and intelligence is the pathway to success. The amount risked should belimited to the cost of the prototype and initial design. Effective management is all aboutconstantly identifying risks and finding creative ways to mitigate them.Two paths of expansion:1. Risky Path: a. Spending dollars on sales & marketing without beta or trial clients. b. Hiring sales personnel without validating the market needs with pilot clients. c. Implementing “on the ground” operational oversight in the form of branch managers without established clients and partners.2. Strategic Path: o Implement cross functional team using existing current resources to validate the market need, create beta clients and partners. o Leverage Intelligence from beta or prototype clients and partners for “on the ground” needs including, but not limited to user feedback on sales, service, distribution. Also, confirm the size (#,$) of the demand by customer segment and product mix. o Achieve the 3 R’s: Recurring Revenues, Raving Fans, and Repeatable Routines before formally expanding with “feet on the street” in new markets. Ephor Group | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
Revenue Strategies for GrowthEphor Growth Services Snapshot Ephor Group | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046