Engineering Growth and Enterprise Value: Cracking the Code to Success
Can you engineer market value and design your growth in valuation? Absolutely! Your unit economics play a crucial role from the moment your investors come on board.
In fact, future investors, such as post-Seed series investors, potential M&A opportunities, and retail and institutional investors during an IPO, heavily consider these economics when evaluating your worth.
Just take a look at various industries like cannabis, crypto, SaaS, e-commerce, telehealth, co-working spaces, and ride-hailing — when the market fluctuates, it's scalable, profitable unit economics that ultimately win the game.
So, how can you engineer the right numbers? Well, here's the good news: practically everyone on LinkedIn is trying to offer you a solution for more predictable outcomes. But what does it take to succeed?
Firstly, you need people who possess the ability to build for the present while keeping an eye on the future, without over-engineering. These individuals should be driven by a shared vision and engaged through shared values, fostering mutually beneficial growth.
Secondly, your business requires a well-oiled engine consisting of processes, technology, and visibility/insight. This empowers your talented workforce to focus on what they do best: solving problems for your customers. By creating predictability in results, you enable them to excel.
Thirdly, instill a culture of shared goal planning and integrated budgeting, aligning personal and company objectives. When everyone is rowing in the same direction with a clear understanding of the resources available and how to best utilize them, remarkable outcomes can be achieved.
Furthermore, it's essential to deeply understand the job your customers are trying to accomplish or the problem they want you to solve. Evolve your offerings to meet them where they are. For example, why provide servers when you can offer an app? Adapt your product to deliver the desired outcome efficiently and effectively.
In addition, identify avenues to captivate your customers' attention and pique their desire. Every product addresses a desire for change in someone's life. Determine the most cost-effective ways to reach your target audience and get on their radar.
Finally, ensure that your product or solution is genuinely interested in solving your customers' problems. Authenticity and a genuine focus on customer success will pave the way for long-term growth.
Can you engineer growth? Absolutely! If you understand what your engine should look like, how to construct it, and which immediate problems to solve to propel it forward. If you lack this knowledge, it's time to seek solutions through talent acquisition, service providers, advisors, and leveraging your network.
Once you achieve this growth, the next challenge will be to sustain it without breaking your engine under the weight of increasing demand. Continually iterate, improve, and adapt your processes to scale effectively while maintaining operational excellence.
Remember, the key lies in understanding and optimizing your unit economics, building a purpose-driven organization, and continually refining your approach to meet the evolving needs of your customers. Embrace these principles, and you'll engineer remarkable growth and market value. Good luck on your journey!