Originally Published Spring 2018
Growth hacking is the sexy new label the tech industry has applied to the traditional crafts of advertising, sales, marketing & product design.
Why is growth hacking so important to the future of your business?
Think of it as an arbitrage play.
Every $1 spent on growth hacking delivers $2 in revenue and this adds between $5-$20 to the enterprise valuation.
So when it comes time to sell the business, or do an IPO, you and your investors will make a lot more money.
The faster you grow. The higher the valuation multiple.
It is the investment growth formula at the heart of Venture Capital.
They know the market data supports an investment in sales and marketing
The same principle applies to product teams inside large corporations. Fast growing product launches = bigger bonuses all round.
So the next time the CFO or your accountant questions your Sales & Marketing budget just show them the correlation between Sales & Marketing spend and YonY Revenue Growth for accounting software sales.
And the correlation between YonY Revenue Growth and Valuation Multiples for accounting software.
Because, if it works for selling accounting software and services, just think what increasing your Sales and Marketing spend will do for your business.
What are you waiting for? It's time to start growth hacking...