“Winning market share by price alone is a losing game. Innovate or die.” – quote from a CFO of a company in Professional services sector
The National Center for the Middle Market, a collaboration with The Ohio State University Fisher College of Business and GE Capital conducted comprehensive research focused on the Middle Market, defined as companies with revenues of $10MM to $1BN. Growth Champion companies achieved 10%+ revenue growth in the 2010/2011 period and project a similar rate in 2012. They represent 9% of the total Middle Market. This double-digit growth is generally not correlated with factors such as company size, industry type, or location. Rather it is linked to certain business practices and behaviors. One such behavior is a focus on innovation.
Discussions of increasing company revenues typically focus heavily on increasing efforts to obtain new customers. Most companies don’t really manage top-line growth. Management allocates resources to sales efforts they believe will be most productive and hope the economy cooperates. But a growing number are taking a less passive approach, and studying revenue growth more carefully. Analyzing sources of revenue can yield a wealth of information, which results in more targeted and more efficient deployment of resources, capital, and decision-making and, therefore, increased returns on investments in sales and marketing.