7 good reasons for growthThe most important success factor for any software vendor

Daniel Maurer – December 2015Software Vendor Management Guidewww.softmanguide.com

A presentation for you who…• Is the CEO of a software company• Shall take over as CEO of a software company• Member of the management team of a software company• Is a board member of a software company• Is the owner of a software company• Is an investor in a software company• Wants to start a software company• Are generally interested in how software companies are

managed and developed

Content7 arguments to create a common understanding why growth is important – and, as a small bonus, CAGR explained

IntroductionFor software vendors - growth is an important success factor

IntroductionFor software vendors - growth is an important success factorNo – it’s probably the most important one

IntroductionFor software vendors - growth is an important success factorNo – it’s probably the most important oneThat’s why your employees must understand why it’s so important

1 – Growth is a powerful motivatorPeople – like your employees – like to compete……if not with others – with themselvesGrowth is a competitive sport with direct feedback

2 – Growth is a common motivatorGrowth is a very strong driving force for every individual……no matter what role you haveGrowth can easily become a common objective……for everybody……owners, management and all other employees

3 – Growth creates opportunitiesGrowth creates resources……which creates opportunities……for product development and innovation……which creates opportunities……for a long-term financial stability

4 – Growth creates dynamicsGrowth make things happen……and creates a dynamic working environment……for all employees

5 – Growth means career openingsGrowth creates career opportunities……with new and exciting jobs and assignments

6 – Growth is easyWell maybe not……but……it’s easier to achieve growth with a very low……or even a zero marginal cost

7 – Growth creates valueBe proud of your growth rate – your CAGR……because it proves scalability on which……the company value is highly dependent on

CAGR explainedCompound Annual Growth Rate

CAGRCAGR represents your average annual growthA high CAGR for a long period shows……a consistent and stable growth……which is loved by investors and ownersThe formula is ((FV/PV)˄(1/n))-1 where……FV is the end value and PV is the starting value and……n is the number of periods……if possible – wisely chosen where the annual growth is highest

So…- Growth is a powerful motivator- Growth is a common motivator- Growth creates opportunities- Growth creates dynamics- Growth means career openings- Growth is easier in a software company- Growth creates a higher valuation

7 good reasons for growthThank you for your attention!

Daniel Maurer – December 2015Software Vendor Management Guidewww.softmanguide.com