False Growth

Growth. The word has been used so much over the past couple of years that it is starting to wear a bit thin now. Quite frankly, I only want to hear about growth if it has been genuinely achieved.


Over the last few weeks, the industry magazines have been littered with reports of growth from various companies and organisations. This is where I'm going to split growth into two types. The first, growth through expansion of branches or franchises. The second, growth through increased revenues and profits.


To me, there is only one type of growth that matters and that is growth through increased sales and revenues. If jobs are priced right in the first place, this leads to increased profits - exactly what matters in times like these.


There have been various tweets and reports from a UK wide double glazing company, stating record weeks/months in terms of sales and frames produced. At first it sounds impressive, but when you consider the extra dealers that have been signed up over the last few weeks and months, this was always going to be the natural outcome - hence false growth.


Growth to me is always more credible when a single company or small group of branches manages to grow. Not by expanding the business. You can expand as big as you want but still not make the correct level of profit to make it work. But by increasing sales from the existing business. That sort of growth is a showcase of that business's ability to make the most from what it has got, rather than having to expand in order to post better figures which are a little bit misleading.


Would be interesting to hear all your thoughts on this one!