Growth-Drive Blog

The 3 Dimensions of Business Growth

Written by George Sandmann, Founder | Aug 19, 2022 11:15:00 AM

Your client wants to maximize their private business' equity value. How do you make the purposeful link between EBIT and value? You need a methodology. Did you know that there are 3 Dimensions of Business Growth™? 

While there is no Easy Button, senior pros are using the 3 Dimensions of Business Growth and creating predictable profits and cash flow, predictable growth, and predictable private business equity value. You're a veteran, ask yourself: will a business operating in these 3 dimensions maximize its value? 

Here's another neat point: analysis performed by your peers on more than 50,000 middle market businesses1 reveals:

  • 62% of CEOs want to grow profits

  • 21% want operational freedom - they want their business to be easier to run

  • 17% are preparing to sell - and of these, International Exit Planning Association data on over 1,500 businesses reveals that 83% need to grow value

You've maybe picked up on this, but the 3 Dimensions of Business Growth™ methodology addresses the strategic priorities of each client goal. Why? In a nutshell, activating Dimension 1 delivers a business that's easier to run; adding Dimension 2 launches profitable growth, and Dimension 3 is M&A prep. This proven methodology is accessed through the Growth-Drive Launch Course and related certification program.

Feedback from Management Consultants, CPA Business Advisors, Exit Planners, M&A Practitioners and Fractional CFOs using the 3 Dimensions of Business Growth™ and the Growth-Drive Playbook™ is phenomenal. 

After completing the excellent Growth-Drive Launch Course, advisors understand the fundamental concepts and techniques for guiding clients as they move from their status quo, achieving the 3 top strategic goals: creating predictable profits, growth, and transferable value. Participants have the methodology, tools and sophisticated support they need to deliver +2 new and valuable services helping clients:

  • Grow to reach aspirational profits - with cash to fund operations or their retirement accounts
  • Grow to reach aspirational equity value, aka the value they'll need to harvest if and when they decide to exit the business

Chart 1 is used with clients to create magic: applying the 3 Dimensions of Business Growth™ this business has doubled EBITDA and, by making the purposeful link between profits and equity value, also increased value by 600%. 

With this primer on the methodology under our belts, in the next article you’ll learn about several tools you can use for driving clients to the win.

Want to apply the 3 Dimensions of Business growth methodology with clients? Consider participating in an upcoming Growth-Drive Launch Course. Livestream course designed for busy pros like you.

Here are some resources for you:

We’d love to know what you think, please comment below or email george@growth-drive.com. 

 

[1] data courtesy of CoreValue Advisor Software