Where is your top line (revenue) headed?

A recent survey of large company senior executives reported that “driving top-line revenue growth” was their top business priority, far exceeding controlling costs.[1] Accelerated business spending to drive innovation and competitive differentiation is expected to follow.

What are the implications of this shift for owner/CEOs of middle market companies?

• Greater resources for your company if those large companies are your business partners – Hewlett-Packard’s renewed emphasis on selling through channel partners has greatly benefited both HP and its resellers.
• Greater competition if your company’s recent performance has resulted from less emphasis by large companies in your market space – small and mid-sized accounting firms have benefited from the shedding of smaller company clients by the Big Four in the wake of Sarbanes-Oxley.
• Greater market volatility as the large companies once again try to stake out larger pieces of the overall economy – beware of dancing under the feet of the elephants, especially in the midst of a stampede.

Protect your revenue by:

1. Staying close to your customers
2. Constantly improving quality while lowering costs
3. Focusing on market niches too small or specialized to entice larger competitors
   

---

[1] Research by Saugatuck Technology, Inc., reported in Financial Executive, May 2007, p. 10.