Blueprint to a Billion

Think

Some Notes Worth Keeping

February 1, 2011

Blueprint to a Billion

General Notes
  • Inflection for growth to $1b = $50m
  • Path to $1b is either 4, 6 or 12 years after inflection, or else you will never reach $1b
  • "Self correction" is the key to actually reaching $1b
  • At the inflection point ($50m), the change in revenue stabilizes and the velocity of revenue spikes (escape velocity of revenue).
  • We will go from 223 revenue growing companies to 800 in 2016 and then will hit the next downturn (and it will be worse - so he says).
  • Revenue drives earnings.  The hard part is revenue.
  • Focus on the customer and never lose faith in your ability to solve their problem (customer - customer marketing, not advertising)
  • Leadership pairs (Head and Heart) with one voice.  Sometimes called (inside - outside)
  • Listen to your competitors customers
  • Your Marquee customers will introduce you to your Big Brother relationships.
  • Link the 7 essentials to create positive feedback loops that drive exponential growth
  • Priorities and time management are key…  Get away from Brute Force management.  Flip management from Brute Force to alignment.
Characteristics of Growth Companies:
  • Growth rate = 27%
  • Double R&D investment to renew products and services
  • Increasing cash flow to achieve growth stability
  • Debt/Equity <22%
  • Deep relationships with top customers will drive top growth companies
7 Essentials: (need 5 or more of these essentials)
  • Way better value to customers (Create, Redefine, Optimize)
  • High growth market segment
  • Marquee Customers (disproportional number of sales, growing themselves, will help you grow your company)
  • Big brother alliances
  • Exponential returns
  • Inside - outside leadership
  • Board with essentials experts
7 Stars
  • Revenue
  • Profit
  • Capital Efficiency
  • Employee Productivity & Efficiency
  • Industry Rank
  • Consistency
  • Momentum