Topic: Growth Strategy
We’ve spent a lot of time recently talking to boards across Europe who are worried about the Growth at all costs hangover. It’s clear that the old model of burning through cash to buy market share is finished. Now, everyone wants to know how to grow in a way that lasts.
When we talk about sustainable growth at Maison du Lion, we aren’t talking about carbon footprints, though that’s important. We’re talking about the long-term economic health of the firm.
It’s much cheaper to sell to someone who already knows you. We’ve seen that companies focusing on net revenue retention outperform those chasing new logos every single time. It sounds simple. But it’s about building a product that’s so integrated into a client’s workflow that leaving would be a nightmare. Growth comes from growing with your customers, not just finding more of them.
Sustainable growth happens when you increase your revenue faster than your headcount. In the past, companies would just throw people at problems. Now, we’re seeing the winners use automation and better internal processes to keep their teams small while their output doubles.
If you can’t raise your prices without losing half your customers, you don’t have a sustainable business. You have a commodity. We’ve found that the most resilient firms are those that have built enough brand equity or technical superiority to pass on inflation costs. This requires a deep understanding of what your customers value.
Growth through acquisition is risky. We’ve all seen deals that looked great on paper but fell apart because of culture. But we’re seeing a shift toward tuck-in acquisitions. Instead of buying a competitor to get bigger, smart firms are buying small teams with a specific technology they lack. It’s a faster way to innovate than building everything from scratch.
We’re helping more and more traditional manufacturing clients move toward service models. Selling a guaranteed uptime contract is optimal. It makes your cash flow predictable. When you aren’t constantly worried about where next month’s sales are coming from, you can plan for the next three years. That’s what real economic sustainability looks like.
from Maison du Lion