Managers and owners of middle market companies encounter major setbacks when they discover that many of the things that made them successful in the past — their processes, innovation, ideas — are no longer working. It is time for a transformation — but into what and how?? SmartScale helps owners identify the right path, embark on the journey, and arrive at the destination as a truly scaled category leader.
Why SmartScale is so Critical for Middle Market Companies.
Scaling a business means having the ability to accelerate growth exponentially. It requires a data-driven category leadership plan and the right systems, processes, technology partners, and staff.
Traditional business models can support rapid growth, but most can’t scale.
This is because the traditional model concentrates on the underlying business and operational improvements—valid but incremental gains to business value.
Many organizations have set up in-house teams of operational specialists. These teams all have one thing in common: they employ professionals who come from industry or traditional strategic and operations-focused backgrounds.
These orthodox professionals bring a continuous improvement perspective—usually focused on achieving incremental gains.
Growth vs Scale
Growth means adding revenue at the same pace you’re adding resources; scaling means adding revenue at a much greater rate than cost. Growth companies earn a valuation of 5-8 times EBITDA whilst Scaling companies earn a valuation of 10+ times EBITDA. Companies that are scaling have the resources to: Dominate their category, attract the best and brightest team members, and disintermediate challengers.
So what stalls business growth? Over time, there are periods when sales growth slows, profit margins get squeezed, or return on assets in general decreases.
The first reaction is to work harder. When working harder didn’t work we decide to work smarter by trying to optimize the operations of the business to increase profit margins. When this provides marginal returns we decide to redesign our sales and marketing efforts. We soon realize that those sales and marketing efforts also are doomed to marginal returns as our competitors recognize our efforts and match them. We come to grips with the hard truth that our effort must be placed into rethinking the entire business model.
And that’s where it gets hard.
Why your company might need SmartScale
SmartScale is an answer for midlife companies that want to rapidly increase equity value. With deep-insight analytics, you gain a granular level understanding of your audience – enabling you to clearly define the jobs that your audience comes to you to have done.
We create value in a different way. Our approach, called SmartScaleSM, accelerates the number and lifetime value of customers—resulting in exponential growth of EBITDA.
- Proven Scaling Protocols
- Data Science Driven Intelligence
- Collaboration and Innovation
- Applied Wisdom
We create category Leaders. Conventional thinking often focuses on cost and capacity maneuvers to serve existing markets. That approach rarely produces a Category Leader. Category Leaders (Think Apple or Amazon) capture 76% of their category value.
We are the answer for those searching for returns that separate them from the crowd. Our 150+ years of operating experience leveraged by our data driven proprietary protocol delivers exponential growth (versus 8-10% which is celebrated).
We align with our select group of exceptional owners. Our incentive-based fee structure, dedication to sustainability, and ability to deliver scale makes us the right partner for stakeholders who are focused on outsized long-term returns with downsized risk.
