Does Your Business Have Billion Dollar Potential?

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Are you an ambitious SME owner? Do you feel your business could really scale? Does your business have billion dollar potential? Here's an exercise to work through to help answer these questions:


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Use this 8 step framework exercise to work through to see if your company has billion dollar potential:

1. Do you have a compelling value proposition?

  • Is it breakthrough?
  • Is it sustainable?
  • Does it leverage the supply chains at lower prices with good enough quality?
  • Is it an unmet need?
  • Is there a high perceived value?
  • Do you deliver an unique experience?
  • Are the reasons for buying in the emotional or financial?
  • Are you new product/service driven? 

2. Are you clear to all your stakeholders about:

  • Target market
  • Customer profile
  • Value provided

Recommended reading: 34 Questions to Answer 'Do You Have A Billion Dollar Company?'

3. Is it a high growth market?

  • Is the market clearly segmented?
  • Are your market segments growing at multiple rates?
  • Is the market big enough to grow at least one 1 bln. company?
  • Is your growth rate higher than your competitors?
  • Can you grow your current market share with a 1000%
  • Are (potential) customers open to buying from small companies like yours?
  • What is the level of competition (how truly distinctive is your offering)?

4. Are you shaped by your customers?

  • Do you partner with your customers to help define the benefits, give feedback, field trials?
  • Do clients use your product and services with their clients?
  • Do your customers refer you on and help you grow?
  • Does the 20/80 rule apply?
  • Are your best clients growing at multiple rates?
  • Do you use client testimonials in all your communications?
  • Does management meet regularly with important customers?
  • Does your R+D department work with leading customers.

5. Do you have impressive partners?

  • Is partnering part of your core strategy?
  • Do you have alliances with bigger companies?
  • Are the alliances managed at executive level?
  • Is there an alliance with the Big Brother or Sister?
  • Are you the only one in your market with such a alliance?
  • Do you benefit significantly (revenue, cost reduction, growth) from alliances?
  • Are the win-wins of the alliances mutual?

6. Are you making enough money?

  • Is financial information easy accessible and transparent?
  • Do you measure and optimise the profitability per customer?
  • Do you consistently exceed the stated goals?
  • Do you consistently exceed the analysts' expectations?
  • Do you have an exceptional ROI compared to cost of capital?
  • Do you generate free cash flow?
  • Is the growth of cash flow greater than revenue growth?
  • Do you re-invest surpluses in accelerated revenue growth or product development?

7. How good is your management team?

  • Is the leadership driven by consistent company values?
  • Does the management identify and clearly communicate the top strategic priorities?
  • Is there an exploration, team and innovation culture?
  • Is cross functional, high performance the norm?
  • Is that innovation culture actively promoted by the management?
  • Is there a balance in the team between internal and external focus?
  • Do you execute well?

8. How good is your board of directors?

  • Do you have a CEO that has grown a billion Euro company before?
  • Is your board NOT dominated by your management team and investors?
  • Does your board consist of CEOs of other billion Euro companies?
  • Are your customers represented on your board?
  • Is the biggest alliance partner on your board?
  • Does the board focus on long term growth vs short term return?
  • Is your management team extremely well prepared when engaging with board members?

Over to you now. How did you find this exercise to tell if your business has billion dollar potential? Tell us in the comments below.

 

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Thursday, 14 November 2019
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