Jon Keating discusses the shift toward efficient revenue growth, the increasing scrutiny of company valuations, and the strategic use of technology and advisory roles to navigate changing economic landscapes.
Jon is a board advisor with extensive experience in the office of the CFO across multiple large tech companies, focusing on trends in fundraising, business environment changes, and strategic market entries.
Find out more about Jon, his background and experience -> Here.
Key Takeaways
- Focus on Efficient Revenue Growth: The importance of generating revenue efficiently has become paramount, contrasting with past practices where high growth overshadowed cost considerations.
- Selective Fundraising Environment: Only about 20% of companies seeking funding are currently well-positioned to raise funds, highlighting a “flight to quality” among investors.
- Shift in Valuation Perspectives: The valuation landscape has shifted significantly, with a decrease in high valuations due to a dried-up IPO market and cautious fundraising.
- The Role of Advisory in Strategic Decisions: Senior managers in financial services could benefit from leveraging advisory roles to navigate the complex and evolving business environment.
- Importance of Strategic Market Entry: Companies need to conduct thorough market research and have a clear go-to-market strategy when entering new markets, especially in varied regulatory environments like the UK and EU.
- Data Privacy and Compliance: Understanding local regulations such as VAT and data privacy laws in Europe is crucial for companies expanding internationally.
- Cultural Adaptation in Business: Adapting business strategies to fit cultural and regional differences is essential for successful market penetration and scaling.
- Technology Investment Focus: Investment in technology, particularly in automating financial operations, is a growing trend among companies seeking efficiency and innovation.
- Hybrid Approaches to Business Relationships: Combining in-person and virtual interactions can lead to more efficient and effective business relationships.
- Rising Importance of AI and Technology: Companies need to consider incorporating AI and other technologies into their business models to stay competitive and relevant.
- Long-term Impact of Strategic Decisions: Decisions made now regarding market entry, technology investment, and fundraising have long-term implications on a company’s trajectory and sustainability.
- Navigating Economic Fluctuations: Companies must be agile and strategic in adjusting their business models in response to economic changes and market demands.
Key Statistics
- Only 20% of companies are currently positioned to successfully raise funds.
- Target revenue growth rates vary by company size, e.g., tripling revenues for companies with 1 to 5 million, doubling for 5 to 10 million, and 50% growth for those over 10 million.
Key Discussion Points
- The shift from valuing high growth to emphasizing efficient revenue growth.
- The impact of economic conditions on fundraising and valuations.
- The strategic role of advisory in guiding businesses through complex environments.
- The necessity of detailed market research before entering new markets.
- Understanding and complying with local regulations such as VAT and data privacy laws.
- Adapting business strategies to cultural and regional specifics.
- The importance of technology in enhancing business operations and financial management.
- Combining virtual and face-to-face interactions to build and maintain business relationships.
- The potential of AI to revolutionize business but the need for it to be based on solid use cases.
- The need for businesses to prepare for economic fluctuations by making strategic adjustments.
- The role of senior management in supporting new market entries and expansions.
- Evaluating the cost-effectiveness and strategic impact of business decisions in new markets.
#JonKeating
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