2.1 Growth Strategy — setting it up

Growth Strategy places every customer or product in a band by revenue and margin, for two periods at once, so you can see who moved and which way.

• Analyse — Customers or Products.
• Compare — the two periods: Last 12 months vs the 12 before, Last 6 months vs the previous 6, Last 6 months vs the same 6 last year, Last 3 months vs the previous 3, or Last 3 months vs the same 3 last year.

The “same months last year” comparisons remove seasonality; the “previous months” ones show the most recent change of direction.

Choosing the comparison. Seasonal businesses should start with a “same months last year” comparison.