Sales Growth

1+1=3: How Service Providers Can Build Scale

We are told that we live in an economy whose backbone is a strong service economy.  Yet, this sector carried a disproportionate share of the COVID-recovery when their fragile revenues and fixed expenses- model was laid bare.

Leaders of service businesses are expert-deliverers.  They are passionate, and tend to be nimble operators of small-but-dedicated shops.

But when they lose a key account – it can be a while to find another to replace it.  Pivots to new models – despite popular opinion – don’t happen easily, because the pockets aren’t as deep as needed, and the strategic might isn’t necessarily focused on the the entire market.

Building scale involves partnering.

Service providers that partner with others – even informally – generally find that doors are easier to open, RFP’s easier to win, costs easier to manage, and revenue grows.

These partnerships can be initiated informally – literally over coffee – or strategically – where a deliberate effort is made to source partners that fit certain criteria.

Regardless of how they are started, a deliberate framework to manage the partnership should be in place (even just a set of talking point to bring forward to each meeting can be helpful to keep the partnership on track).

But to achieve significant, beyond organic growth, requires the partners coming together to vision an entirely new entity – including new prospects, products, pricing, and markets.

Interested in growth-by-partnership? Let’s talk.




Sales Growth

Recurring revenue as a valuation-driver

Businesses with a high repeat client base tend to have higher valuations.

As the entrepreneur is contemplating a sale, the measurement – and implementation of a strategy to maximize the value of repeat clients is therefore an important activity prior to finalizing a valuation and going to market.

Depending on the type of business, a quick-to-market strategy is to consider the company’s customers as ‘total consumers’, and develop a strategy to provide augmented (but aligned) value across a variety of domains that customers would find helpful.

This strategy gives the business a way to provide value that reaches beyond the traditional limits of the business and sector, and bump-up the valuation with a recurring-revenue program that provides value to customers and short-term growth opportunities and insights to build loyalty, referrals, and cross-sell revenue.

Our Stratum Five recurring revenue team has the expertise and processes to help you understand the degree to which your customers:

  • Exhibit brand loyalty
  • Which are most welcome to upsell and cross-sell messaging
  • Which are most engaged with your organization, and most open to going deeper

The process is anchored by Accelerants – products and services that your customers need, want, and in many cases, are already buying elsewhere.

Accelerants can take a variety of forms: general, product aligned (eg; homeowner focus), or aligned with the interests of specific target demographics.

We also provide turn-key accelerants, ready for custom-branding and quick deployment, including:

  • Extra Mile Protection Plan – a hybrid AD&D and roadside assistance product that provides sponsoring partners with a new revenue channel that comes with its own marketing support, licensed underwriting, claims, industry-standard roadside support, and 24/7 bi-lingual helpline

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Let’s talk about a plan to engage your market:

Sales Growth

Distribution & JV’s

The ability to sell more can very often depend on the size and engagement of your distribution channels. Strategic decisions include size of the channel, geographic coverage, targeting, sales and marketing capability, and more.

  • How effective are your current distribution channels?
  • Are you missing certain profitable geographic segments?
  • How engaged are your channel partners?

We identify opportunities to improve distribution for you, and bring qualified, motivated channel partners to the table.

A joint venture meanwhile, can bring additional capacity and opportunity to almost any business at almost any time.

We identify JV opportunities, develop the business plans, bring the partners to the table, and negotiate the terms of the venture.

Contact us for a confidential conversation:

Sales Growth

Are we clear on our buyer?

One of the most consequential decisions that your team can make is deciding ‘who is our buyer?’…the target market.

It’s important to get right, but if you don’t get it quite right…it’s always changeable (it just costs more money).

Here’s a framework to help Boards and managers zero-in on the most profitable client group:

…this worksheet might also be helpful to you, in designing your service:


Sales Growth

Mind your revenue gap


One of the simplest and most effective tools that leaders can deploy is a sales gap analysis.

In essence, it asks 2 questions:

1. Where are we likely to end-up?

2. Where do we want to end-up? …the difference is the gap.

The management challenge is in figuring out how to close the gap – that’s why sales leaders make the big bucks. Run your numbers here, and use the dozen or so tools below to determine your strategic options:

If you find yourself shy of where you need to be…we should talk.