The 4 characteristics of fast growing companies

In a recent study by Grant Thornton, the fastest growing companies were analysed and a set of 4 common characteristics emerged. The study involved a group of 119 companies identified with over 20% revenue growth last year. 

1. Purpose
   The identified companies all had a clear purpose where each employee, from senior management to those just starting their careers, knew the goals of the business and its strategy for the year ahead.
   
   
2. External Funding/M&A
   Access to external funding is crucial to accelerate growth and prevent cash constraints, and often M&A activity was used to grow the company. 40% of companies used investment from banks, while 35% used peer-to-peer investment or crowdfunding.
   
   
3. Technology
   The companies all utilised technology well, for example using agile management tactics enabled by communication technology; or more advanced technology including automation and robotics.
   
   
4. Culture
   An open-minded and change embracing culture enabled growth, including collaboration, and willingness to go beyond geographical borders and key competencies. 
   

While there are many routes to success, the above were identified as common amongst many or all of the businesses identified.

Read the Grant Thornton Growth Report 2018 here.