Growth vs. Value

Hey there, everyone!

Let’s have a discussion about something that keeps many of us up at night: growing our businesses. But not just getting bigger for the sake of it. It's about growing smart and being worth more when it really counts.

Growth – It’s What Everyone’s Chasing, Right?

In the race to the top, growth often takes the wheel. We're cheering on the sidelines for more customers, more sales, more... Well, everything. And there's this badge of honour when you can say, "My team's grown to a hundred!" But here's a curly one: does all this growth mean your business is actually worth more?

Value – The Real Deal

The big dogs, the ones with the serious cash ready to buy, they're sniffing around for a unique bone, something they can't dig up in their own backyard. They’re after what you've got that they can't whip up quickly or cheaply themselves.

Storytime: Meet Michael Lieberman

Take Michael Lieberman, who co-founded a software company named Datastay. It revolutionised how brake manufacturers catalogued their design drawings through its product lifecycle management software. Datastay became synonymous with the brake manufacturing industry. Lieberman was on a first-name basis with almost every brake manufacturing executive in the industry. He was the man to know, the one who hosted dinners at trade shows—he was the guy.

Then Autodesk entered the picture, seeing Datastay as their gateway to the product lifecycle management software market. Autodesk, a billion dollar serial acquirer renowned for software tools indispensable to designers and builders across various sectors, acknowledged Datastay’s dominance in the brake industry and saw the potential to market Datastay’s product lifecycle management software across the myriad industries Autodesk served.

Autodesk offered Lieberman an extraordinary ten times revenue for his nine-employee company.

Had Lieberman prioritised broad revenue growth, he might have diversified his offerings to the brake manufacturers, diluting the core value that attracted Autodesk. Brake manufacturers need all sorts of other software, but Lieberman remained disciplined and focused exclusively on product lifecycle management tools.?

Lieberman could have branched out to other industries, but spreading his attention to other industries would have weakened his connection to the brake industry and invited competition.

Instead, he stuck to his knitting: Make the world’s best product lifecycle management software for the brake industry

Sticking to Your Guns Pays Off

This tale shows us that focusing on what you do best could mean a golden ticket when it’s time to sell. Diversify too much, and you might as well be camouflaged – hard to spot in a line-up.

So, What’s Your Play?

Think about your business. Are you juggling so many balls that you're dropping the one encrusted with diamonds? Hone in on your ace and make it unbeatable.

The Grand Finale

Strategic buyers don’t care for the jack-of-all-trades. They want the master of one. And they'll lay down top dollar for it. So, as you map out your empire's rise, ask yourself – are you piling on the offerings, or are you crafting a masterpiece they can't turn away from?

The Takeaway

Keep it tight, keep it right, and your value might just take off!

Interested in discussing how you can strategically grow and increase the value of your business? Let's chat! Book a session with me, Ian Burton , and let's explore your business potential together.