Growth is probably the most important success factor for a software vendor. That’s why your employees must understand why it’s so important. Here are 7 growth arguments presented in order to create a common understanding why growth is important. Plus – CAGR explained.

1. 7 good reasons for growth
The most important success factor for any software vendor
Daniel Maurer – December 2015
Software Vendor Management Guide
www.softmanguide.com

2. A presentation for you who…
• Is the CEO of a software company
• Shall take over as CEO of a software company
• Member of the management team of a software company
• Is a board member of a software company
• Is the owner of a software company
• Is an investor in a software company
• Wants to start a software company
• Are generally interested in how software companies are managed and
developed

3. Content
7 arguments to create a common understanding why growth is
important – and, as a small bonus, CAGR explained

4. Introduction
For software vendors - growth is an important success factor

5. Introduction
For software vendors - growth is an important success factor
No – it’s probably the most important one

6. Introduction
For software vendors - growth is an important success factor
No – it’s probably the most important one
That’s why your employees must understand why it’s so important

7. 1 – Growth is a powerful
motivator
People – like your employees – like to compete…
…if not with others – with themselves
Growth is a competitive sport with direct feedback

8. 2 – Growth is a common
motivator
Growth is a very strong driving force for every individual…
…no matter what role you have
Growth can easily become a common objective…
…for everybody…
…owners, management and all other employees

9. 3 – Growth creates
opportunities
Growth creates resources…
…which creates opportunities…
…for product development and innovation…
…which creates opportunities…
…for a long-term financial stability

10. 4 – Growth creates dynamics
Growth make things happen…
…and creates a dynamic working environment…
…for all employees

11. 5 – Growth means career
openings
Growth creates career opportunities…
…with new and exciting jobs and assignments

12. 6 – Growth is easy
Well maybe not…
…but…
…it’s easier to achieve growth with a very low…
…or even a zero marginal cost

13. 7 – Growth creates value
Be proud of your growth rate – your CAGR…
…because it proves scalability on which…
…the company value is highly dependent on

14. CAGR explained
Compound Annual Growth Rate

15. CAGR
CAGR represents your average annual growth
A high CAGR for a long period shows…
…a consistent and stable growth…
…which is loved by investors and owners
The formula is ((FV/PV)˄(1/n))-1 where…
…FV is the end value and PV is the starting value and…
…n is the number of periods…
…if possible – wisely chosen where the annual growth is highest

16. So…
- Growth is a powerful motivator
- Growth is a common motivator
- Growth creates opportunities
- Growth creates dynamics
- Growth means career openings
- Growth is easier in a software company
- Growth creates a higher valuation

17. 7 good reasons for growth
Thank you for your attention!
Daniel Maurer – December 2015
Software Vendor Management Guide
www.softmanguide.com