Most businesses dream of experiencing hyper growth and becoming leaders in their niche. They want to be rewarded for all the blood, sweat and tears that have gone into building their business. But how do you build for hyper growth in your SME? Let’s take a look at what is hyper growth and how your business can build towards it.
What is hyper growth?
According to the World Economic Forum, hyper growth is when a business achieves a compound annual growth rate (CAGR) of greater than 40% for more than one year. They also manage to double their revenue in less than two years. There are also three stages in hyper growth. They are:
Three stages in hyper growth
Stage 1: The Edison stage
In this stage, companies are focused on invention. They are continually asking themselves, “Can we build this thing and how?” In this stage, businesses are focused on product development and project management to build the minimum viable product (MVP) for their business.
Stage 2: The Model T stage
After you have got the product and the market, it is time to work on the process and execution of the offering. This section works on designing the business to become scalable and move from its niche to a mass market. Most businesses spend a long time in this stage. One of the causes for spending too much time in the model T stage is that there are too many client personas for a business to focus on and they aren’t as profitable. It is important to narrow your focus down to one or two personas at most.
Stage 3: The P&G stage
Now it is time to invest in your brand and make it a household name. This stage is focused on branding and the customer. The business needs to ensure that they are customer driven and they highlight what differentiates their offering from their competitors.
By going through these stages, you will be able to build a company which will experience hyper growth. Let’s take a look at seven traits of a hyper growth business.
Seven traits of a hyper growth business
1. Focused on growth
The founders of a hyper growth business are focused on growth. They are not afraid to take calculated risks and see change as a benefit to taking their business to new and better places.
2. Concentrate on product innovation
They may have created a MVP to test the market. Next, they take the data they have acquired from their clients and use this to re-iterate their product until the ideal product speaks to the pain points of their ideal client.
3. Knows the customer
You need to be customer-centric if you want to build hyper growth in your business. By focusing on your customer, you will ensure that you create something which the market wants. Not what you imagine the market wanting.
4. Be efficient
Efficiency is key. Look at the process used in your business and make sure that you are using the most efficient ones. This will ensure your business can scale with fewer problems when the time comes to grow exponentially.
5. Get top talent
Your team will determine how your business survives hyper growth. Employees who are dedicated and want to see the business become the best it can be will help you grow but disinterested employees whose only driving force is their end-of-the-month pay check will not help you when your business starts to grow rapidly.
6. Use technology
Don’t be afraid of the new trends in technology. To stay at the forefront of your industry, you need to use technology. Many of the new customers coming into the market are used to interacting with technology and using it to do most things. Therefore hyper growth businesses must focus on technology which will help them be relevant and innovative.
7. Create a cohesive culture and vision
You need to have a vision to focus on and keep top of mind when you are growing exponentially. This will help you to avoid taking a route with your business which is not in line with the culture and vision you want to build. Company culture is also important. You need to be supportive and focused on teamwork.
By building these seven traits in your business, you will be ready when you have a growth explosion in your business.