How to Build a Growth Plan(Expansion vs Expertise)
Gabe Jarnot, Northland CapitalChris Enbom, Allegiant Partners
Jennifer Finken, NCMIC
Today’s Goal
• Identify methods & tools that you can use to help your business grow
1. Broader
2. Deeper
3. Smarter
For Starters
– How we define Expansion vs Expertise– Maybe not a “versus” perspective, but more . . . How, when, who, where perspective
Before you Grow, You Need to Know
What is your business model?Are you clear on what your model REALLY is?–At a basic level, direct vs vendor
In Thousands
2014 Small Ticket
Portion of SEFA - ELFA
Banks Captives Independents Total
Vendor Programs $6,508,201 $35,781 $2,027,736 $8,571,718
Captive Programs $0 $14,213,742 $0 $14,213,742
Captive and Vendor Programs $6,508,201 $14,249,523 $2,027,736 $22,785,460
Originated Directly $755,874 $17,178 $683,911 $1,456,963
Total Originated $7,264,075 $14,266,701 $2,711,647 $24,242,423
30% 59% 11%
Less than 10% direct
Basic Market/SWOT Analysis
Before looking at any growth plan, we need basic SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis/Market Data
• What sort of market penetration do you have?
• Why do your customers use your services?• How do your rates and levels of service
compare to competition?• Strengths, Weaknesses, Basic Market Data
Bad Credit
Great Credit
Big Vendor, Lots of Financing Options
Complicated StoryUsed Asset
Small Vendor, No Financing
Good Credit
Great Asset
Private Party Sale
Unpopular Asset/Industry
Spectrum of Customer Stories
High Rate
Low Rate
Big Volume Capacity
Sell on Speed
Willing to Spend Time on Credits
Ability to Take High Risk
Deep Understanding of Industry and Customer Profiles
Very Efficient
Collections Capability
Unpopular Asset/Industry
Spectrum of Funding Sources
Vendor
Direct
Willing to Pay for Other Bundled Services
Working with Limited Resources
1. Whether larger or smaller companies, we are all constrained by resources
2. Understanding how to analyze growth within an existing niche versus starting an initiative in a new niche or area is difficult and complex
Acquire New ClientsAcquire New Clients
Base RetentionBase Retention
Market PositioningMarket Positioning
Adjacent MarketsAdjacent Markets
Grow Share of WalletGrow Share of Wallet
Growth InitiativesEX
PAN
SIO
NEX
PERT
ISE
RevenueCurrent Year Goal 1-3 Years
Closing Ratio
Examples - CL ConversionVendor Market Share Increase Average Ticket
Examples - New HiresNew Accounts/Sources
Examples - Identified New Opportunities
Examples - JV Partnerships and/orAcquisitions
Two Important Points
1. Each source of revenue requires a focus on customer value and go-to-market
capabilities
2. Each source of revenue requires different skills and priorities
Which option(s) do you select?Option(Give it a Name)
Risk is Low (Yes or No)
MissionSynergy (HML)
Level of Ease(HML)
Market Advantage (HML)
1. Closing Ratio
2. CL Conversion
3. Vendor Share
4. Average Ticket
5. New Hires
6. New Accts/Sources
7. New Opportunity
8. New Opportunity
9. Partnerships/JV’s
10. Acquisitions
Finalize
• Priorities for next year• Define Tactical Action Steps• Determine the one step that needs action
now.
What you do in the next 90 days following this exercise will determine where you will be three years from now
Developing a Growth Plan?
• Know Who you Are• Know your value proposition & go-to-market
capabilities• Develop a series of Growth Initiatives• Filter and Prioritize• Define your Vision/Strategy next 3 Years• Set Goals & Tactics