FROM THE FOUNDER
Growth is the goal
You need to make a profit to stay in business, but focusing on growth makes that more likely to happen, not less likely.
F or decades, I have been accused of being overly-preoccupied with business revenue growth versus the bottom line. Zweig Group even hands out awards each year for the fastest-growing firms in the AEC business. Sure – you need to make a profit to stay in business. Survival is a mandate and no one has unlimited capital. But I have found focusing on growth makes that more likely to happen, not less likely!
and historical growth rate is the best indicator of that. All you have to do is look at tech company valuations to know this is a true statement. Some are worth billions before they are ever in the black. 3. Growth is how the employees do better. It forces them into expanded roles. It creates promotion opportunities. It keeps them learning and growing. Growing firms push their people into roles they aren’t qualified for. And that is how your people can grow! 4. Growth keeps everyone interested (and motivated). Growth is exciting and spurs on more
Here’s more on why I AM all about growth: 1. Growth makes it easier to be profitable. I never set profit goals for any business I owned. I did set revenue goals, however, and pursued them relentlessly. Costs creep up over time. My experience is that if you try to stay the same size, you will find yourself in a situation of declining profitability. I would rather increase the top line than cut costs any day. 2. Growth makes the business more valuable. Everyone who is inexperienced at mergers and acquisitions wants to talk multiples of EBIT when it comes to value. That’s great for stable companies in mature industries. But for everyone else, value is based on projected future growth,
See MARK ZWEIG, page 12
THE ZWEIG LETTER MARCH 13, 2023, ISSUE 1480
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