A new report has been published by SAP and Delta Economics exploring the changing fortunes of Sunday Times Fast Track listed companies over the last decade.

This research is interesting and worthwhile. It makes valid points about the changing mix of business types and their ability to ride the economics of the last decade and makes  it clear that high growth is hard to sustain over time. Flexibility to anticipate and adapt to change – opportunity or threat – seems to be a mantra for business these days and so the fact that the report draws similar conclusions is perhaps unsurprising but consistent with other studies. From my experience working with companies of many sizes – including 2 Fast Track 2010 organisations – flexibility is clearly important and so, too, is building a sustainable business, one that develops the right skills, builds the right structure and infrastructure and which is clear that growth must drive profitability not just revenue expansion.

I wonder, though, whether the report misses a vital point in stating that 1/3rd are no longer in business because they have been acquired and grouping these with those that have gone into liquidation / receivership. Selling the business is often the reason for companies to pursue a high and fast growth strategy. Being acquired within a decade of achieving Fast Track status is probably seen by the original shareholders as a business success and achievement of the strategy, rather than the slightly negative connotation I pick up from this report. 

Read the full report at

http://www.businesszone.co.uk/files/siftmedia-businesszone/SAP-FastTrackDecadeReport-01.08.11.pdf

or catch the headlines at

http://www.businesszone.co.uk/topic/finances/infographic-fast-growth-kills-businesses/36309

Tags: business growth, fast track, profitability