Tactical & Practical You cannot serve two METRICS: How to Align Finance & Marketing
Dec 19, 2024
Discover how setting a minimum profit goal led to an incredible 100% growth for a business this year. Learn effective strategies for unplanned expansion and the essential tools that drive success. The discussion highlights the complexity of juggling multiple metrics and suggests a simplified approach to defining clear profit and revenue objectives. This straightforward mindset not only streamlines operations but has also proven to lead to remarkable growth.
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One Metric Focus
- Optimizing for two metrics (revenue and ROAS) creates internal conflict and lost profit.
- Focus on a single metric, profit, to align the entire organization.
Profit-Focused Strategy
- Set a minimum profit goal and a maximum revenue ceiling, based on inventory constraints.
- This protects your business from overspending while ensuring profitability.
100% Growth Story
- OG grew 100% this year by prioritizing profit over revenue goals.
- They continually sold out of inventory, reinvesting profits to increase capacity and further growth.