Private Equity backed Cloud and Managed Services Company
The Power of Strategic Planning I
Case Study: Private Equity backed Cloud and Managed Services Company
A small, highly talented team built a thriving cloud and managed services business.
However, as the company grew, its sales team struggled to maintain the same momentum. Despite their best efforts, growth plateaued, and the executive team and investors recognized the need for a strategic shift.
To address this challenge, the team worked with a newly appointed sales and marketing director to conduct a comprehensive review of the business. This analysis led to the identification of three key growth strategies:
Diversifying the Customer Base: Reducing reliance on two key customers was essential to mitigate risk and unlock new growth opportunities.
Enhancing Cloud Service Competitiveness: Improving the competitiveness of cloud services was crucial to attract and retain customers in a rapidly evolving market.
Developing Managed Services: The nascent managed service offering presented a significant growth opportunity, requiring investment and strategic development.
To execute these strategies, the team took decisive action:
Segmenting the Market and Aligning Sales Teams: By segmenting the customer base, the team could align the sales team with the most promising opportunities, optimizing their efforts and maximizing results.
Establishing a Dedicated New Business Team: A dedicated new business team was formed to focus on acquiring larger customers and expanding the company's market reach.
Investing in Training and Development: A significant investment was made in training the sales team, particularly in the skills required to write compelling customer tender responses and larger project proposals.
Reengineering the Cloud Platform: The cloud platform was reengineered to improve resilience and offer services at competitive rates, enhancing the company's value proposition.
Invested in Demand Generation: Choosing to outsource demand generation to a third-party marketing company delivered high target sales leads for the team to work on. The target market was well researched, bespoke contact designed, and a regular outreach program instigated to meet new customer acquisition KPI.
The outcomes
The outcome of these strategic initiatives was exactly what the team had planned.
The company experienced a rapid return to growth, doubling its revenue in just three years.
This impressive performance attracted the attention of a UK competitor, leading to a successful and value-enhancing exit.
This case study underscores the importance of strategic planning and execution in driving business growth. By identifying key growth opportunities, investing in talent and technology, and adapting to changing market conditions, this company transformed itself from a stagnant business to a high-growth success story.