While marginal gain theory can be applied to any business, product or industry it works particularly well for SMEs as it is about making small, very achievable changes.
By paying attention to these elements in the growth phase, businesses can generate more revenue as well as greater profits putting them in a better position to grow.
Many participants in the program indicated their goal is to become $A25 million- to $A35 million-sized business. Many are surprised when told they have the potential to add an extra zero to the end of their financial target.
Connecting CEOs to the expertise, knowledge and skills they need to accelerate company growth and compete in a global marketplace enables them to understand what they need to do to reach that goal.
The flow-on effect of providing Australia’s business leaders with growth knowledge cannot be underestimated. The group of 10 CEOs who went through the first program in 2014/2015 created 114 new jobs in just one year.
What has been great to hear from participants - regardless of industry or market – is there are common challenges and opportunities for business owners. This can vary from how to source and retain talent, or how to use digital as a competitive advantage.
ANZ Chair in Business Growth Dr Jana Matthews says one of the most important changes to becoming a sustainable high-growth business is to change from a ”small-thinking” to a “growth-thinking” mindset.
“CEOs are often puzzled about why something that was working, isn’t anymore,” she says. “They know they need to do something different but they’re not sure what it is. Some just hunker down thinking the risks associated with borrowing money are too high.
“Once they take a deeper look at their business with a growth mindset – analysing their marketing strategies, customers and employees, and understanding what to do in what order, they become more comfortable about taking the calculated risk to finance growth.”
A solid growth plan which looks beyond month-to-month calculations and includes a mission, vision, specific goals, strategies, activities, timelines, responsibilities and accountabilities for employees results in a clearer understanding the plan and in turn financing options suitable for growing the business.