Are You Getting Trapped in Slow Growth?
Why Growth Matters More Than You Think I’ve talked before about the importance of growing your business. Without meaningful business growth, there’s no money for innovation, your best people have nowhere to go, and your market share starts to erode. This much is commonly acknowledged. But the real problem? Many companies don’t actually know how […]
How to Hit the Rule of 40 in Your Business
Do You Hit the Rule of 40? Have you heard of the Rule of 40? Since the mid-2010s, venture capital firms have used this rule of thumb to evaluate SaaS companies and other recurring revenue businesses. These types of businesses often operate at a loss in the early years while investing heavily in building their […]
Grow Your Business Without Giving Up Equity
Ever wondered how private equity investors grow their portfolio companies? Their goal is simple yet ambitious: triple the value of a small business in 3–5 years before selling it to a strategic buyer or another private equity fund. Why the rush? Their investors expect a hefty 15–20% annual return on their money. So, what do […]
Should You Grow Your Business or Stay Small?
Most business owners talk about growing their companies. In fact, Bank of America’s 2024 Business Owner Report shows that 87% of medium-sized businesses expect to grow. But here’s the catch: many business owners don’t truly want growth. What they actually want is a good income and a balanced lifestyle. And guess what? There’s nothing wrong […]
Be Your Own Private Equity Firm
As a young investment banker, I grew up inspired by the legendary leverage buyout (LBO) stories of the 1980s. One of my favorites was Barbarians at the Gate, which chronicled the 1989 bidding war for RJR Nabisco. The deal ended when Kohlberg Kravis Roberts & Co. (KKR) “won” with a staggering $31 billion bid —nearly […]
Eliminate Bottlenecks to Unlock Business Growth
“If you’re not growing, you’re dying” is one of those overused phrases that still manages to hit home. Why? Because flat business growth isn’t just unsustainable—it’s a flashing neon sign of deeper issues. Inflation erodes profits, competitors steal market share, and ambitious employees look elsewhere for opportunities. Here’s the truth: If your business isn’t growing, […]
Business Operating System #10: The 3HAG Way
Like Gino Wickman, Shannon Byrne Susko started as a member of Verne Harnish’s Gazelle program and she was inculcated in Rockefeller Habits and Scaling Up principles. Her system, documented in her books (The Metronome Effect (2014) and The 3HAG Way (2018)), evolved from Scaling Up’s toolset. However, there are some notable differences. Susko recognizes the […]
Business Operating System #7: Scaling Up
Following the publication of Traction, Verne Harnish came up with “Rockefeller Habits 2.0” and titled it Scaling Up. This is a system directed at strengthening fast-growth companies, organized around four areas: people, strategy, execution, and cash. In Scaling Up, Harnish updated the One Page Strategic Plan and added a thinking tool he calls the 7 […]
Business Operating System #5: Rapid Enterprise Development
Keith McFarland, former CEO of twice Inc. 500 winning Colletech Systems, credits a chance meeting with Jim Collins for inspiring his research that led to The Breakthrough Company. McFarland replicated Collins’s Good to Great process, conducted for the elite of the Fortune 500, and applied it to small, fast-growing companies. The Rapid Enterprise Development team […]
Business Operating System #3: The Rockefeller Habits
Verne Harnish studied as a mechanical engineer, after which he decided on a business career and earned an MBA. While studying at Wichita State University, he founded the Association of Collegiate Entrepreneurs and then expanded the concept nationally and later globally when, in 1987, he founded the Young Entrepreneurs Organization (now: EO). Working and consulting […]