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Profit
Strategies
 While
there are many
different
strategies for
businesses to
follow, the book
summarizes them
into three basic
strategies that
will allow
everyone on the
sales team to
understand your
prospect's
strategy, and
quickly align
your value
proposition to
them. You will
be able to
understand the
impacts of
strategy and
execution, and
gain insight
into how you can
close business
with the
company, because
these are the
strategies that
the CEO is
following.
We will look at
three basic
strategies that
companies use to
garner these
advantages;
Growth
Strategies,
Profit
Strategies,
and
Operating
Strategies.
Growth
strategies are
what companies
use to increase
revenues, market
share, or both.
An increase in
revenues does
not necessarily
correlate to an
increase in
market share, if
these revenues
are growing at a
slower pace than
either the
market itself,
or the
revenues of
their
competitors.
Profit
strategies are
strategies
intended to
increase the
“bottom line” of
the company,
which in a
publicly traded
company means
increased EPS.
Finally, we’ll
look at
operating
strategies whose
intent it is to
manage the
enterprise on an
ongoing basis,
with the intent
of increasing
the value of the
business by
focusing on
market share,
revenues,
earnings, etc.
The strategies
are not always
mutually
exclusive, in
that a strategy
focused on
growth does not
inherently rule
out an increase
in the bottom
line. The intent
of this chapter
is to show you
the results key
initiatives have
on the financial
statements, so
that you can
understand what
strategies the
company is
executing on.
The chapter
provides tools
that make it
easy to
understand and
recognize a
company’s Profit
Strategies. For
example, look
below to
recognize a Buy
the Business
Strategy.
How to Recognize
the Buy the
Business
Strategy
1. Investment
cash flow on the
cash flow
statement is
increasing.
2. Increase in
cash flow
statement under
acquisition of
business.
3. Goodwill is
increasing.
4. The company
is raising cash
through LT debt
increasing, ST
debt increasing,
or additional
issuing of
stock.
This is a
unique and
powerful section
of Think Like a
CEO that will
differentiate
you and your
sales team from
everyone else,
and allow you to
truly get inside
the head of the
senior executive
you are calling
on.
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