Welcome to “Closing the Growth Gap,” your go-to resource for insights on achieving rapid growth in the B2B SaaS industry. I’m Ben Scandlen, co-founder of Mosaic Growth Solutions, and I’m joined today by my fellow co-founder, Neew Patel. Together, we’ll regularly explore the most compelling topics in growth and marketing, sharing our expert insights to help your business thrive.
What is Fast Growth?
Fast growth, especially in the context of mid-stage technology companies, refers to the most efficient and strategic path to achieving significant expansion. For many of our clients, this means tripling or quintupling their size over three to five years. Fast growth isn’t about short-term hacks or superficial gains; it’s about a focused, sustainable approach that leverages a company’s strengths and market opportunities.
The Four Barriers to Fast Growth
Despite the allure of rapid expansion, many companies face significant challenges post-investment that can impede their growth trajectory. Here are the four key barriers:
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Lack of a Growth Vision
- A clear and actionable growth vision is essential. This vision should outline how the company plans to transition from its current state to its desired future state. It must be communicated effectively to align the entire organization. Without a defined path, companies can scatter their efforts and resources, failing to achieve any meaningful progress.
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Insufficient Reporting Infrastructure
- To measure and demonstrate growth, robust reporting mechanisms are critical. Many founder-led companies, especially those that have bootstrapped until receiving investment, lack consistent and reliable performance reporting systems. Establishing key performance indicators (KPIs), ensuring data reliability, and having transparent attribution across the funnel are vital for tracking progress and making informed decisions.
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Organizational Culture
- Building a culture that embraces the growth vision and motivates all employees is crucial. Leadership must ensure that the entire organization feels involved, capable, and excited about the growth journey. This involves transparent communication, fostering a risk-taking mindset, and celebrating incremental wins to maintain momentum and morale.
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Balancing Quick Wins with Long-term Strategy
- There’s often pressure to show immediate progress to stakeholders, which can lead to prioritizing short-term wins over foundational improvements. While quick wins are important for maintaining investor confidence, they should not overshadow the need to address long-term strategic challenges. A balanced approach that delivers immediate results while laying the groundwork for sustained growth is necessary.
Addressing the Challenges
Overcoming these barriers requires a thoughtful and strategic approach:
- Establish a Clear Growth Vision: This vision should be developed by the CEO and leadership team and communicated across the organization. It should outline specific actions, internal capabilities, and external conditions necessary for success.
- Implement Robust Reporting Systems: Invest in building the operational infrastructure needed for reliable performance reporting. Define KPIs, ensure data accuracy, and create transparent reporting mechanisms to track growth effectively.
- Cultivate a Growth-oriented Culture: Engage and motivate your team by involving them in the growth journey. Encourage risk-taking, support innovation, and maintain open communication to build a cohesive and driven organization.
- Balance Quick Wins with Foundational Work: While it’s essential to show progress to stakeholders, also invest in addressing fundamental issues that support long-term growth. Communicate the importance of these foundational efforts to investors and set realistic expectations.
Conclusion
Fast growth is a complex and challenging endeavor, especially for B2B SaaS companies navigating post-investment landscapes. By understanding and addressing these four barriersโlack of a growth vision, insufficient reporting infrastructure, organizational culture, and the balance between quick wins and long-term strategyโcompanies can better position themselves for sustainable and impressive growth.
Stay tuned to “Closing the Growth Gap” for more insights and strategies to drive your company’s success.
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