Sunday, April 23, 2006

Blueprint to a Billion - 7 Essentials to Achieve Exponential Growth

My brother Glen has finally joined the blogsphere with a blog at http://glen-ferndalewind.blogspot.com/. My brother Lyle has had a blog forever and even got a Biodiesel book published from it.

One of the latest books I have learned from is "Blueprint to a Billion - 7 Esentials to Achieve Exponetial Growth" by David Thomson. He talks about businesses that successfully move from zero to over a Billion dollars in sales. According to Blueprint, the odds of doing this are one in 20,000. Does not seem like totally bad odds to me.

Of course we are over a Billion now but I can always learn. One of my principles is to filter information and morph it into something I can use.

The companies that hit this Billion $ status had a start up phase (called the runway to growth) where things move at a normal sales growth. This period takes 4 to 12 years. Then an inflection point where revenue breaks into an exponential trajectory. My challenge it to figure out what causes the inflections.

The book talks about tying growth to marquee customers (dangerous but can work - eg there are many successful car parts companies like Linamar and Magna). It also talked about working with alliances - tying in with a big company not only as a customer but in a stronger partnership.

Billion $ companies are masters of exponential returns. I could have figured this - I just need to figure out how to get it.

Of course I like the book because as I have said before, growth is key to a healthy company. Good growth (growth not lead by just price cutting) leads to painless efficiencies.

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