Why you should think like an investor

As a growth marketing specialist agency, we have experience working with lots of fast growth companies and have distilled 7 fundamentals into a guide for marketing leaders. This is the second in our series of 7 blog posts, each detailing one of the growth fundamentals.

The marketing team needs to produce a solid growth plan to warrant investment in the form of either budget or resources.

To deliver an impact on business growth, investment is essential, and it comes in the form of either budget or resources (even if growth is organic, it isn’t free - a lot of time and dedication has to be invested to create content and tools to drive organic growth).

It can be hard to convince stakeholders to invest - according to CrunchBase data from 2003 - 2013, just under 50% of the companies that raised a series A funding will not raise a series B (which is normally used to accelerate scaling).

To convince stakeholders to invest, you should put yourself in the shoes of your would-be investors to produce a clear growth plan which is both compelling and feasible, given the level of investment required.

Including a growth economics analysis is a powerful way to illustrate how the investment will be used to impact on profits, which is ultimately what your investors care about.

In our experience, a lot of businesses tend to underestimate the level of investment needed to hit promised targets, so a growth economics analysis also has the benefit of illustrating the potential outcomes on the profit line under different customer acquisition or cost scenarios, helping to frame the range of investment necessary for the growth strategy.

Download The 7 Fundamentals of Business Growth and learn how to calculate, enable and drive business growth.