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1 
Nine Practices for Doubling 
Your Revenue Every Year 
By Nitin Khanna, CEO, MergerTech Advisors 
© 2010 Mergertech. All rights reserved.
2 
Nine Practices for Doubling Your Revenue Every Year 
By Nitin Khanna, CEO MergerTech Advisors 
Revenue and profits are, of course, the lifeblood of any business. One of the primary goals for entrepreneurs 
when they start a company is to reach a sustainable level of revenue and get to profitability. Once those goals are 
reached, however, revenue growth becomes a prime imperative for most entrepreneurs, especially those hoping to 
raise capital or sell their company some day. 
I want to explain why it is so important to set an aggressive revenue growth goal. This is based on my personal 
experience founding, growing and selling a tech firm that did just that, as well as the other tech companies I am 
fortunate to mentor. 
The speed at which you can grow your revenues is a function of your industry, your products, your sales 
management and sales force. However, revenue growth is just as dependent on your sales philosophy and the 
amount of time and energy you, as the founder/CEO, focus on it and evangelize revenue growth to all your 
employees, regardless of whether they consider themselves “sales people.” 
Virtuous Cycle #1: Growth improves all your relationships 
“Using the techniques below, 
we grew our previous company 
from zero to over $120MM in 
sales in less than ten years. And 
employees loved working there. 
And clients loved working with us 
and referring us to other clients.” 
The reasons to target revenue growth go far beyond the obvious fact 
that it leads to excellent financial performance. Employees, clients, and 
all other stakeholders benefit immensely from healthy annual increases 
in sales. Employees who join growth companies expect to put in a lot 
of themselves in return for getting a lot back. They desire increased 
responsibility and career growth, and there is no way to provide those 
sustainably in a company that is not growing. The enjoyment that 
comes from success and personal growth can be more important to 
retaining the best employees than the pure financial rewards. In the 
same way, as you grow your company at a good pace, you can offer 
better and more services to your clients, as well as projecting more stability and confidence. Your vendors and 
suppliers are happier to work with you. Of course, you and your financial stakeholders all benefit from the success, 
as well as realize the value of continuing to invest in the business. 
Clearly, revenue growth creates a virtuous cycle inside your company that every exit‐minded entrepreneur seeks to 
increase the value of the company. So, how do you go about doing it? A philosophy that works very well in order to 
enable high revenue growth is the “Double Your Revenue Every Year” philosophy. This philosophy essentially calls 
for you to plan for, invest in, and otherwise structure your organization to find a way to grow 100% each year. It’s 
a provocative thought but there are several reasons we can find for not wanting to do it or being unable to do it. 
Time, money, sales force ability, sales geographies and scalability are all common and completely understandable 
reasons to resist this philosophy. However, when implemented correctly, this approach will lead to considerably 
higher sales growth because the whole organization will be so focused on planning for, and accomplishing, the goal. 
Virtuous Cycle #2: Growth improves all your processes 
Beyond the pure value of increased revenue, the goal of doubling your revenue is to bring many other best‐practice 
business benefits to your company. You will build earlier and better relationships with your bankers and financiers 
so you don’t run out of capital if the growth does materialize. You will hire the best people you can to support this 
growth. You will focus hard on making your processes as productive and efficient as possible so you can scale. You 
will professionalize your sales force, sales management and marketing efforts in order to reach this goal. You will 
exhort everybody in your company to assist with sales efforts and will emphasize growing existing accounts as
3 
much as getting new accounts. You will begin the process of strategizing about inorganic growth through acquisition 
earlier in the life of your company. And all of these things create huge amounts of value for your company whether 
you hit your 100% growth goal or not. And if you only achieve half your goal, you will still have grown by 50%, 
which is much faster growth than targeting 20% and beating that number easily. 
I hope I have been able to establish the two virtuous cycles that accrue to you and your company by focusing on 
revenue growth. So what are the actual tactics that can help accomplish this strategy? Here are nine practices that 
form the backbone of this philosophy and can be customized to your particular situation. Using the techniques 
below, we grew our previous company, Saber, from zero to over $120MM in sales in less than 10 years. In the three 
years before we sold it, our revenues were $24MM, $55MM, and $125MM. And employees loved working there. 
And clients loved working with us and referring us to other clients. And that led to even faster growth. 
So, with no further ado, here are our sales tactics for trying to double your revenue every year. 
Nine Practices for Doubling Your Revenue Every Year 
1. Consider yourself the head of sales. Through training, motivation, and a hunger for learning, make yourself as 
CEO/founder the head of sales. Nobody will ever articulate your message with the vision and clarity you can. 
Nobody will ever know your product as well as you do. 
2. Love to sell. Teach yourself how to love selling. You are solving somebody’s problems through your solutions. 
What’s not to love? 
3. Make doubling revenue a strategic goal. Set the goal and work backwards to figuring out how you’ll achieve it. 
4. Put the resources and tactics in place to ensure that the strategy succeeds. Break the goal down into small, 
discrete, manageable tasks that can be tracked and reported on each week. Don’t just hold sales calls every 
week and let the results fall where they may. 
5. Expect mistakes in sales hires. These are the hardest hires you will 
make. You will feel that they are a lifeline and you will feel pressure 
to overpay for what you feel are good salespeople. Don’t. Keep 
your pipeline constantly full of good salespeople and terminate as 
soon as your gut tells you a salesperson is not effective. Terminate 
for faults in process and skill rather than because they miss their 
number in a particular quarter. 
“Corporate and business development 
includes both inorganic and organic 
growth. Think about capital needs 
about 12 to 18 months before you 
need the capital. ” 
6. Focus as much on growing accounts as you do on getting new accounts. This means you also need to focus on 
delivering a delightful customer experience. 
7. See every employee as a salesperson. Your company is experienced by your customer much more through 
your employees than through you. How they dress, behave, talk, and generally carry themselves is a reflection 
on you and your company. Don’t shy away from the hard and necessary discussions with your employees. Send 
them all through sales training if you have to. 
8. As you grow, consider inorganic growth as part of your growth plans. Too many companies only think of 
sales growth as coming through organic activities. Big companies don’t think that way. Corporate and business 
development includes both inorganic and organic growth. Think about capital needs about 12 to 18 months 
before you need the capital. Have great relationships with your bankers. Invest as much time with them as with 
your best customers.
4 
9. Pat yourself on the back, even if you miss your goal by 50%. Hey, you’ve still grown by 50%. And what’s bad 
about that? If, instead, you had set your goal at growing by 25%, and beat that by 25%, you would only have 
grown 37.5%. Set a big, audacious goal. 
If you follow these nine practices, you are on your way to experiencing the virtuous cycles of better operations and 
best business practices. You should experience the heightened satisfaction of knowing you are doing the best job 
satisfying all your stakeholders and building wealth for yourself. But this technique is not for everyone. If you’re not 
happy, and doubling every year is not your deal, set your own path. Just be sure you aim high!
5 
MergerTech is a specialty investment banking firm focused solely on small and mid-­sized 
technology companies. 
It helps business owners realize the value of their companies through its deep domain expertise and global 
knowledge of buyers. As a result, it delivers three key values: fast introduction to buyers, best terms and value, 
and greatest certainty of deal closure. MergerTech leaders have expertise in all aspects of technology investment 
banking, including mergers and acquisitions, capital raises for growth or recapitalization, and a spectrum of 
advisory services. For more information, go to www.mergertech.com. 
MergerTech Advisors: 
4000 Executive Parkway -­‐ 
Suite 515 
San Ramon, CA 94583 
Phone:925-­‐ 
215-­‐ 
2770 
info@mergertech.com 
www.mergertech.com

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How to grow your startup

  • 1. 1 Nine Practices for Doubling Your Revenue Every Year By Nitin Khanna, CEO, MergerTech Advisors © 2010 Mergertech. All rights reserved.
  • 2. 2 Nine Practices for Doubling Your Revenue Every Year By Nitin Khanna, CEO MergerTech Advisors Revenue and profits are, of course, the lifeblood of any business. One of the primary goals for entrepreneurs when they start a company is to reach a sustainable level of revenue and get to profitability. Once those goals are reached, however, revenue growth becomes a prime imperative for most entrepreneurs, especially those hoping to raise capital or sell their company some day. I want to explain why it is so important to set an aggressive revenue growth goal. This is based on my personal experience founding, growing and selling a tech firm that did just that, as well as the other tech companies I am fortunate to mentor. The speed at which you can grow your revenues is a function of your industry, your products, your sales management and sales force. However, revenue growth is just as dependent on your sales philosophy and the amount of time and energy you, as the founder/CEO, focus on it and evangelize revenue growth to all your employees, regardless of whether they consider themselves “sales people.” Virtuous Cycle #1: Growth improves all your relationships “Using the techniques below, we grew our previous company from zero to over $120MM in sales in less than ten years. And employees loved working there. And clients loved working with us and referring us to other clients.” The reasons to target revenue growth go far beyond the obvious fact that it leads to excellent financial performance. Employees, clients, and all other stakeholders benefit immensely from healthy annual increases in sales. Employees who join growth companies expect to put in a lot of themselves in return for getting a lot back. They desire increased responsibility and career growth, and there is no way to provide those sustainably in a company that is not growing. The enjoyment that comes from success and personal growth can be more important to retaining the best employees than the pure financial rewards. In the same way, as you grow your company at a good pace, you can offer better and more services to your clients, as well as projecting more stability and confidence. Your vendors and suppliers are happier to work with you. Of course, you and your financial stakeholders all benefit from the success, as well as realize the value of continuing to invest in the business. Clearly, revenue growth creates a virtuous cycle inside your company that every exit‐minded entrepreneur seeks to increase the value of the company. So, how do you go about doing it? A philosophy that works very well in order to enable high revenue growth is the “Double Your Revenue Every Year” philosophy. This philosophy essentially calls for you to plan for, invest in, and otherwise structure your organization to find a way to grow 100% each year. It’s a provocative thought but there are several reasons we can find for not wanting to do it or being unable to do it. Time, money, sales force ability, sales geographies and scalability are all common and completely understandable reasons to resist this philosophy. However, when implemented correctly, this approach will lead to considerably higher sales growth because the whole organization will be so focused on planning for, and accomplishing, the goal. Virtuous Cycle #2: Growth improves all your processes Beyond the pure value of increased revenue, the goal of doubling your revenue is to bring many other best‐practice business benefits to your company. You will build earlier and better relationships with your bankers and financiers so you don’t run out of capital if the growth does materialize. You will hire the best people you can to support this growth. You will focus hard on making your processes as productive and efficient as possible so you can scale. You will professionalize your sales force, sales management and marketing efforts in order to reach this goal. You will exhort everybody in your company to assist with sales efforts and will emphasize growing existing accounts as
  • 3. 3 much as getting new accounts. You will begin the process of strategizing about inorganic growth through acquisition earlier in the life of your company. And all of these things create huge amounts of value for your company whether you hit your 100% growth goal or not. And if you only achieve half your goal, you will still have grown by 50%, which is much faster growth than targeting 20% and beating that number easily. I hope I have been able to establish the two virtuous cycles that accrue to you and your company by focusing on revenue growth. So what are the actual tactics that can help accomplish this strategy? Here are nine practices that form the backbone of this philosophy and can be customized to your particular situation. Using the techniques below, we grew our previous company, Saber, from zero to over $120MM in sales in less than 10 years. In the three years before we sold it, our revenues were $24MM, $55MM, and $125MM. And employees loved working there. And clients loved working with us and referring us to other clients. And that led to even faster growth. So, with no further ado, here are our sales tactics for trying to double your revenue every year. Nine Practices for Doubling Your Revenue Every Year 1. Consider yourself the head of sales. Through training, motivation, and a hunger for learning, make yourself as CEO/founder the head of sales. Nobody will ever articulate your message with the vision and clarity you can. Nobody will ever know your product as well as you do. 2. Love to sell. Teach yourself how to love selling. You are solving somebody’s problems through your solutions. What’s not to love? 3. Make doubling revenue a strategic goal. Set the goal and work backwards to figuring out how you’ll achieve it. 4. Put the resources and tactics in place to ensure that the strategy succeeds. Break the goal down into small, discrete, manageable tasks that can be tracked and reported on each week. Don’t just hold sales calls every week and let the results fall where they may. 5. Expect mistakes in sales hires. These are the hardest hires you will make. You will feel that they are a lifeline and you will feel pressure to overpay for what you feel are good salespeople. Don’t. Keep your pipeline constantly full of good salespeople and terminate as soon as your gut tells you a salesperson is not effective. Terminate for faults in process and skill rather than because they miss their number in a particular quarter. “Corporate and business development includes both inorganic and organic growth. Think about capital needs about 12 to 18 months before you need the capital. ” 6. Focus as much on growing accounts as you do on getting new accounts. This means you also need to focus on delivering a delightful customer experience. 7. See every employee as a salesperson. Your company is experienced by your customer much more through your employees than through you. How they dress, behave, talk, and generally carry themselves is a reflection on you and your company. Don’t shy away from the hard and necessary discussions with your employees. Send them all through sales training if you have to. 8. As you grow, consider inorganic growth as part of your growth plans. Too many companies only think of sales growth as coming through organic activities. Big companies don’t think that way. Corporate and business development includes both inorganic and organic growth. Think about capital needs about 12 to 18 months before you need the capital. Have great relationships with your bankers. Invest as much time with them as with your best customers.
  • 4. 4 9. Pat yourself on the back, even if you miss your goal by 50%. Hey, you’ve still grown by 50%. And what’s bad about that? If, instead, you had set your goal at growing by 25%, and beat that by 25%, you would only have grown 37.5%. Set a big, audacious goal. If you follow these nine practices, you are on your way to experiencing the virtuous cycles of better operations and best business practices. You should experience the heightened satisfaction of knowing you are doing the best job satisfying all your stakeholders and building wealth for yourself. But this technique is not for everyone. If you’re not happy, and doubling every year is not your deal, set your own path. Just be sure you aim high!
  • 5. 5 MergerTech is a specialty investment banking firm focused solely on small and mid-­sized technology companies. It helps business owners realize the value of their companies through its deep domain expertise and global knowledge of buyers. As a result, it delivers three key values: fast introduction to buyers, best terms and value, and greatest certainty of deal closure. MergerTech leaders have expertise in all aspects of technology investment banking, including mergers and acquisitions, capital raises for growth or recapitalization, and a spectrum of advisory services. For more information, go to www.mergertech.com. MergerTech Advisors: 4000 Executive Parkway -­‐ Suite 515 San Ramon, CA 94583 Phone:925-­‐ 215-­‐ 2770 info@mergertech.com www.mergertech.com