The Patterson Logistics Growth Equation (PLGE) is the business model that Patterson built in 2000, when it expanded into the $500 million to $700 million market.
Today, Patterson has a growing business and growth equation that is a lot more efficient than a simple “grow by 50%” or “grow at 50%.”
In this post, we’re going to look at some of the key business trends in Patterson’s growth equation and how they could impact your business.
The growth equation is a way to analyze the business value of a business.
If you can’t understand how the business is growing, you can never understand its future.
For example, if your business was valued at $100 million in 2016, you probably have no idea how to grow the business to $1 billion by 2021.
The growth equation allows you to see how the value of the business will change with time.
It also gives you an idea of how to allocate capital in the business, so that you can optimize your growth equation to get the best return for your shareholders.
The Growth Equations business model has a few important lessons to offer for you as a business owner.1.
Your business isnt growing by 50% yet.2.
Your growth equation can change.3.
There are some factors that affect how the growth equation works.
We’ll look at these in the next post.