Then I remind myself that we don’t all necessarily want the super growth (and in my view super stress) that these businesses have, but wouldn’t it be great to know what they’re getting so right, and see what we can incorporate into our own companies in 2015?
First off, some facts
- Their average annual sales growth has been 71% a year over the last three years.
- Turnover ranges from £33m to £106m.
- 6 are in manufacturing, which is encouraging news for the economy.
- Over 50% are in the services sector
- Only 48 are in London and the South East, meaning growth is well spread across the country.
- Over 33% of the companies achieved their growth after taking investment from VCs or angels.
- 75% of them are still majority owned by their founders, so they haven’t all sold out (yet)
Of course, it’s all about the finances
I would say that wouldn’t I? Obviously I’m very focussed on how these companies manage their finances. With sales growing an average of 71% a year, they need to have the firmest of grasps on their numbers.
They need to know every figure and be able to see what’s coming in plenty of time, and have the cash to fund it. These businesses say that having a strong balance sheet was critical to their ability to grow without crashing.
Niching – the way to go?
I do find fascinating how many of the companies have achieved super growth in a very tight niche. It shows the power of extreme focus and the ability to make money out of scaling one small thing done very well.
Is exporting the key to fast growth?
One thing really stood out: Over 50% of these companies trade overseas. That shows where the growth opportunities really are. If you missed it, last week the government announced new help for companies wanting to export for the first time.
The high growth mind set
All the business owners on the list talk about the obvious gut instinct and belief in their ideas, and about having that compelling vision from the beginning. A vision that was so powerful they could persuade employees and investors to come on board.
One owner said that from the start they were acting and thinking like a £100m business, getting the right expert team on board, setting up systems and software for where they were going, not for where they were. I reckon that takes real focus and commitment. Creating systems that must seem like overkill at the time – but clearly it sets them on the right path.
Start up to scale up – the challenges
Most small companies remain small because they just can’t scale up. What sets these businesses apart is they’ve developed the skills and resources to scale in a way that’s profitable. Many companies I see grow the top line at the expense of margin. Working out how to scale seems to be the missing ingredient in achieving real growth.
The main barriers the fast growing companies overcame were access to international markets, lack of management experience and limited products or services.
What will I be doing differently next year?
Having had my little business put firmly in its place, next year I’m going to do a few things differently.
- More focus on fewer things, and make sure they’re the important things. I decide what I need to stop doing.
- Be really clear where I want 2015 to end, and measure my progress along the way.
- Make longer term decisions, thinking and acting as a bigger business.
And what will you do?
So is 2015 going to be a year of growth for your business? Do you know yet what new markets or customers you could target? My plans include launching online finance courses, so I know I could learn a lot from the success stories in the Fast Track 100.
And even if you’re not set on out and out expansion, maybe you could look at tightening up your business so you get more profit and cash from it. Whatever your plans why not start thinking about what could be different for you next year.