Toolkit
Below is a few examples of our key value creation tools:
The Growth Formula
In its simplest form, all growth can be boiled down to two factors: 1) frequency, defined as the number of opportunities you are having in the market i.e. the volume of sales efforts and 2) conversion, defined by the rate of which your sales efforts convert into sales. By tuning these factors, growth can be achieved using this simple formula: Growth = Frequence times Conversion.
Growth Efficiency Ratio
The GP/CoE-ratio stands for Gross Profit over Cost of Execution. The calculation expresses the ratio between gross profit generated against the cost it required to execute or complete a sale. This means it can be used to determine how efficient the sales growth is taking place. It can also be used to determine how to invest most efficiently in more growth. To measure GP/CoE from a CTM perspective, two things are important: frequency and conversion.
The BCSA Model
BCSA stands for (B) Better, (C) Cheaper, (Simpler) and (A) Available, and can also be referred to as the technology adoption model. The BCSA model is an analytical tool that can determine what customers your product offering has the highest natural relevance for and thus which customers you should target to achieve hypergrowth in the most capital efficient manner.
Business Trajectory Management
Business Trajectory Management (BTM) is a way to factor time into growth. The tool enables our companies with projecting gross profit from leads by analysing the historical lead time and conversion rates. By doing so, we're able to make informed decisions based on data a long time before potentially problematic events occur. The BTM model aids decision making and helps management teams determine when and where to invest in growth.
Value Peaking
Value Peaking is a strategic approach that highlights key proof points, shaping your company’s valuation trajectory. In essence, it serves as a tool to model different stages of successful growth, helping you identify when your business reaches significant high-value milestones, or "peaks" of enterprise value. Value peaks can be leveraged for capital-related activities such exit scenarios, or solidifying a company's market position.