Why Growth is Important

For most companies and entrepreneurs growth is a key success driver. In certain development phases or situations of companies cost-cutting, restructuring and divestments can be appropriate steps, but in the final analysis, they can only serve to prepare the ground and create a suitable platform for profitable growth.

 

You cannot „save yourself to success“. The future can only be conquered by growth

If a company is not successfully growing, most of the time, this is the beginning of its end. It is the essence of entrepreneurship to recognize market opportunities or to create and grasp them and it is  obvious that this cannot be achieved by pure cost-cutting, savings and efficiency improvements. You cannot „save yourself to success“. Success and achievement require investments to take carefully crafted growth steps and controlled risks, in order to conquer the future.

 

If you want take you company onto the growth path, read here how.

 

If your company is already growing, read here how to address the resulting challenges.

 

 

Source: M. Hirt,  Critical Considerations for Boards of Fast-Growing Companies (Worauf ein Aufsichtsrat bei schnell wachsenden Unternehmen achten muss), Aufsichtsrat aktuell 2015, Linde Verlag

Examples for results we can achieve together:

  • Realization of a growth strategy with profitable growth of 8% per year (CAGR)
  • Increase of EBIT-margin by 2.5 percentage points through a corporate portfolio repositioning
  • Expanding market leadership through selective geographic expansion
  • Realizing cost savings potentials of EUR 15 Mio. (12%  of total costs) of an organizational unit within three years, whilst at the same time increasing productivity and customer satisfaction
  • Increase of EBITDA by 20% over the previous year by rapidly growing the service business
  • Restructuring of a strategic alliance to secure the value creation of a EUR 70 million investment
  • Securing the long-term future of a family-owned business by a strategy of profitable growth, productivity increases and optimization of financial structure
  • Successful implementation of the strategic repositioning and portfolio restructuring within 18 months to remove hopelessly cash-negative businesses and dramatically improve the performance of cash cows and stars
  • Penetration of new markets and growth of more than 20% per year by executing a Mergers & Acquisitions strategy
  • Concentration of research & development budget on those innovation projects with the highest success chance, to increase the expected return on investment of the innovation portfolio threefold
  • Igniting growth with marketing, sales, and pricing



Tel.: +43 (0) 2773 20176 office(at)hirtandfriends.at



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