Growth strategy and foundations / Lesson S08

Worked growth-strategy examples and how to evaluate them

A useful growth strategy example names the customer, the offer, the price, why they'll choose you and who will deliver. This lesson compares three routes to an extra $60,000: twenty new projects, twelve extensions for existing clients or a monthly service for ten clients. The arithmetic matches, but the evidence, risks and delivery requirements differ.

By the end, you should be able to

  • Turn a revenue ambition into explicit assumptions
  • Check three different routes to a target
  • Challenge double counting and unrealistic capacity assumptions

Build the example from units

Start with a customer group, a defined offer, a price and a realistic period. Then estimate how many suitable opportunities you need, how many might buy and how much delivery each requires. State where each number comes from. A historical rate, a small pilot and a hopeful assumption should not look identical in a spreadsheet.

Revenue can be decomposed into customers, purchase frequency and average transaction value when that model fits. Do not force repeat frequency onto a naturally one-off service. For subscription businesses, retention and timing also matter. A year's ending customer count multiplied by a full-year price can overstate revenue when customers joined throughout the year.

Worked example (illustrative): three ways to add $60,000

A specialist service aims to add $60,000 annual revenue. Route one is 20 new projects at $3,000. Route two is 12 relevant extensions at $5,000 for existing clients. Route three is a $500 monthly service for ten clients over a full twelve months.

The arithmetic is identical, but the business requirements are not. New projects need acquisition and onboarding. Extensions need a genuine additional need and capability. The monthly offer needs continuing value, service capacity and retention. If the ten clients start halfway through the year, the third route does not deliver $60,000 in that year.

Suppose new projects each require 25 delivery hours. Twenty projects require 500 hours before sales and administration. Extensions take 45 hours each, or 540 hours. The monthly offer requires five hours per client per month, or 600 hours annually. Now compare contribution per constrained hour, support load and payment timing, not just the same revenue target.

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