Dispelling the perception that high growth typically comes from start-up businesses, Growth Accelerator said that analysis of companies demonstrates that growth is set to come from established businesses.
The research revealed that out of the companies set to achieve high growth 30 per cent are aged five to ten years, and 29 per cent are more than 10 years old – with some having been in business for more than a century.
Simon Littlewood, director at Growth Accelerator, said that high growth is often perceived to be the exclusive domain of start-ups or young enterprises that are new and “nimble enough” to grow quickly.
Mt Littlewood added: “This research shows that growth can come at any stage in a business’s lifetime. Many of our most prosperous, ambitious organisations are those which are setting and achieving new goals whether in their fifth, fiftieth or hundredth year of trading. With the right support and guidance, the growth opportunity exists no matter what the business age.”
Growth Accelerator said that these findings are echoed by its team of growth managers, who have said that the opportunity for high growth can come more than once in a business’s lifecycle, and that high growth is not and should not be limited to young companies.
The research suggests that the biggest catalysts driving these periods of high growth in businesses over five years old are changes to management or ownership of a business, or shifts in the wider economy.
Growth Accelerator added that the research has also highlighted that businesses between five and 10 years old face unique challenges that can impact their ability to achieve their growth potential. The growth managers added that the most common challenges at this stage include a lack of confidence among management teams in how to approach their next phase of growth; boards focused on managing “day-to-day” rather than creating a long-term plan, and innovative businesses needing support in turning new ideas into new products and services.
The growth managers said that having an innovative approach to running the business and developing products and services, and continually reviewing the business plan are the most important things a company can do to sustain long-term growth.
Mr Littlewood explained: “What is clear is that established companies are as capable of delivering high growth as innovative start-ups, but they face a unique set of challenges – and opportunities – as they mature. The steps they need to take to achieve their growth potential are often where the biggest challenges lie.”
ADVISER REACTION
Robin Keyte, director of Somerset-based Keyte Chartered Financial Planners, said: “We have had a noticeable increase in enquiries since RDR, so I would suggest it ought to be around the positioning of the business proposition with regard to RDR where growth comes. So firms that have just done the same thing as before – but describing the payment as fees with the same percentages as the commissions that they received before – are not going to see that growth. I think it’s making things relevant to RDR because consumers have had a lot of coverage on this and their level of financial literacy with regard to how advisers are paid has increased substantially.”
