Articles

When Was the Last Time You Took Your Growth Engine to the Garage?

Posted by [email protected] on 05/23/2025 12:00 am  

When was the Last Time You took Your Growth Engine to the Garage?

by

Michel Prive'
A Silver Fox Advisor

       

In my work as a sales advisor, I meet many business owners frustrated with their revenue generation.

They’ve invested heavily—sometimes as much as 15–20% of their revenue—across marketing, business development, sales, and customer service. Yet the returns feel underwhelming.

Often, they’ve tackled problems one department at a time—outsourcing marketing here, hiring a sales rep there—without stepping back to look at the big picture. The result? Disjointed efforts, no clear path to repeatable growth, and a team running hard without going far.

Let me offer a different approach. One that borrows from my early training in mechanical engineering and applies it to something every business has (or should have): a Growth Engine.

Think of your business like a machine.

A powerful, efficient Growth Engine runs on four cylinders:

  • Brand Awareness
  • Lead Generation
  • Sales (Inside and Outside)
  • Customer Service


If any one of those cylinders is weak or misfiring, your whole engine struggles. You burn fuel (aka budget) but don’t get far down the road.

And speaking of fuel—even the best-designed engine won’t run without it. In this case, your fuel includes:

  • Clear strategy
  • Aligned leadership
  • Motivated talent
  • Customer insights
  • Consistent execution

This is what turns a well-built system into a machine that actually moves.   

Here's a real-world example.

We were brought in to help a service firm ramp up new client acquisition. But during our initial assessment, we discovered a bigger issue: existing clients were leaving faster than new ones were coming in.

The “Customer Service” cylinder was broken. Yet the only investment on the table was “more leads, now!”

That’s like fixing a leaky bucket by pouring in more water. Instead, we convinced the owner to rebuild her Growth Engine—starting with retention.

We:

  • Investigated client churn and fixed root causes.
  • Turned positive client feedback into marketing fuel.
  • Equipped sales with better messaging and tools.
  • Upskilled the customer service team for retention and upsell.
  • Installed a scalable client journey with clear handoffs.
  • Brought in fractional specialists to handle each cylinder efficiently.


The result? Within two quarters, the investment paid for itself. Today, that company has a high-functioning Growth Engine—and a much higher valuation.

Growth Engines are not just for startups.

Whether you're an SMB in your second growth phase or a mid-size firm looking to scale, your Growth Engine must evolve with you. And if it’s been a while since you gave yours a tune-up, it might be time for a look under the hood.

A few key takeaways:

  • Growth doesn't live in silos: It’s the output of a connected system—Marketing, Sales, and Customer Service working as one.
  • A good Growth Engine feeds itself: One sale creates ripple effects—referrals, repeat business, content shares, and upsells.
  • Scalability is key: Growth should accelerate as your system matures—not drain more time and money.
  • Fuel matters: Strategy, talent, and execution are what make the engine run. No fuel, no movement.
  • Optimization is ongoing: The best engines are fine-tuned constantly—driven by data, feedback, and experimentation.


So, when was the last time you brought your Growth Engine in for a check?

If you’re not sure—or if you're hearing a few suspicious knocks—let’s talk.

Visit Slictexas.com to book a no-pressure Growth Engine Check-Up.


All I Need is Another Loan!!

Posted by [email protected] on 05/16/2025 4:09 pm  

All I Need is Another Loan!!!

May 2025

Richard T. Hendee, Editor
The Silver Fox Advisor

       

Something I have seen in my years of experience in advising small businesses that is often very disturbing is a business owner who is not able to identify or accept that the business either has a revenue issue or an expense issue (sometimes both) and then seeks to borrow additional money to keep the business going. There comes a point when the cash flow generated from a business operation simply can not cover the debt obligations. 

 Typically loan payments are made from the profits a business is able to generate. If the business is losing money month after month, then it is not generating the profits needed to pay loan payments. Therefore, adding an additional loan payment is not the answer.

 Further, when obtaining a new loan is not possible, many business owners seek to find an equity partner. While this can potentially be a workable solution, raising capital through an equity partner can be a very expensive process. An equity partner is looking for a rate of return that is higher than what can be earned in the open market. Let’s say a five-year Treasury Bill has a rate of return of 5.0%. Treasury Bills are considered a risk-free investment. Investing in a small business has risks associated with it, so an investor wants to be compensated for that risk. Thus, an investor may want to realize a 10.0% or even 15.0% annual rate of return. In addition, most investors want that return to be an after tax return, so if the investor is in a 34% tax bracket, that would mean for the investor to net 15.0%, the annual return rate must be 20.1%. Then, if the investor doesn’t get paid anything back for five years, that 20.1% annual return would need to be multiplied by five. This all results in a $100,000 investment turning into a $200,000 plus repayment after five years.

Instead of obtaining another loan or seeking an investor, what the business owner needs to be focusing on is increasing more profitable sales, cutting the cost of goods sold to improve the gross profit margin and/or reducing operating expenses.

There are also some moves that can be made to reduce the amount of debt on the business’ balance sheet, like selling off old inventory to generate cash, selling some fixed assets for cash that are not longer being utilized, collecting a note receivable that has been outstanding for some time. All these examples plus a few others could be used to generate cash that could be used to pay down or pay off debt, thus reducing the amount of monthly loan payments.

 If you need assistance in reviewing and identifying some customer experience  factors that you can build on, I recommend you seek a business advisor, consultant or mentor: Contact a Silver Fox Advisor. Remember, having experience on your side always helps. We encourage you to visit our Website at www.silverfox.org to select a Silver Fox Advisor and also to learn more about the Silver Fox Advisors, as well as our great programs and community outreach endeavors.