Friday, November 06, 2026

Most SME owners read a falling top line as a traffic problem and discount harder. In the businesses I coach, the offer is more often the real constraint than the price. Here is the three-step Offer Ladder to test it first.

Two SME owners can grow revenue by the same 30% in the same year, and end up in completely different positions. One funded that growth from margin — reinvested profit, disciplined cash management. The other funded it from debt — a loan, a line of credit, supplier terms stretched thin. On paper, both grew. In reality, only one of them actually got stronger.

The Enemy: Growth That Looks Identical From the Outside

Revenue growth is the number everyone celebrates — in the industry press, at the awards dinner, on the LinkedIn post. It's also the number that hides everything that matters about how that growth was funded. A business that grows 30% on borrowed money carries new fixed repayments whether or not next year's revenue holds up. A business that grows 30% funded by its own margin discipline has no such obligation hanging over it. Same top-line number. Completely different risk sitting underneath it.

This is where the FMCG and product-based businesses Kevin works with get caught most often: a big new listing or export order looks like unambiguous good news, but funding the stock, the packaging, and the working capital gap between production and payment often means leaning hard on debt or supplier credit — right at the moment the business can least afford a shock.

The Funding Source Audit

Before you take your growth plan to the bank, or before you celebrate the growth you've already booked, run this audit.

1. Trace the source — for every dollar of growth this year, was it funded by retained margin, by new debt, or by stretched supplier and customer terms? Most owners have never actually separated these.

2. Calculate the true cost — debt-funded growth carries an interest cost and a repayment obligation that exists independent of next year's performance. Margin-funded growth carries neither.

3. Stress-test it — if next quarter's revenue dropped 20%, could the business still service what was borrowed to fund this year's growth? If the honest answer is "barely," the growth was more fragile than it looked from the outside.

This isn't an argument against ever using debt to grow — sensible, well-priced debt against a proven opportunity is a legitimate tool. It's an argument against not knowing which kind of growth you're building, because owners who don't know often find out the hard way, in a quarter when revenue softens and the repayments don't.

"I have grown my business 5x since working with Kevin. Everything Kevin told me to do was the complete opposite of what I had been doing. Working with Kevin has truly been a complete game changer."

— Richard, Chem Suppliers

Why This Gets Missed

Growth conversations in SME businesses almost always start and end with revenue, because revenue is the number that's easy to state and easy to compare. Margin discipline and funding source are slower, less glamorous conversations — and they're exactly the conversations that separate businesses that compound in strength year after year from businesses that grow themselves into a cash crisis. Across nine companies of his own and 200+ businesses coached one-on-one, Kevin has seen the pattern hold: the businesses still standing a decade later weren't always the fastest growers. They were the ones that knew exactly what their growth was costing them.

Quick Wins This Month

  • Pull this year's growth number and trace it back to its funding source — margin, debt, or stretched terms.
  • If debt-funded, calculate your repayment obligation as a fixed cost against a 20% revenue drop scenario.
  • Set a target margin-to-debt funding ratio for next year's growth plan, even a rough one — it beats not tracking it at all.

Key Takeaways

  • Trace the funding source behind every dollar of growth — margin, debt, or stretched supplier terms carry very different risk.
  • Calculate the true cost of debt-funded growth before celebrating the top-line number.
  • Stress-test whether the business could service its growth-related obligations through a 20% revenue drop.
  • Use debt deliberately, not by default — the question isn't whether to borrow, it's whether you know you're doing it.

If you're not sure whether this year's growth made your business stronger or just bigger, that's exactly the conversation worth having before you plan next year's.

...and you become the owner who knows what your growth is really costing you.

Friday, October 30, 2026

If a prospect asked what makes you different, could you answer in one sentence? Here's the three-question positioning map that gets you there before your next pitch.

Thursday, October 29, 2026

Most sales die at silence, not at no. Here is how to build a first AI agent for sales follow-up in five steps, with a human in charge and NZ privacy and spam rules covered.

Thursday, October 29, 2026

AI speeds up whatever you point it at. Here is how to match it to the one link in your business that is actually limiting growth, before you spend on tools.

Thursday, October 29, 2026

36% of NZ SMEs use AI, but the smallest firms trail by 34 points. Here is a four-question test for choosing your first AI job, and a 30-day plan.

Thursday, October 29, 2026

Nearly half of SME owners say their business doesn't have a money problem — it has a time problem. Here's the 90-day Freedom Plan to fix it.

Thursday, October 29, 2026

A business with four equal customers loses 25% of revenue the day one leaves. Here's the customer-concentration math most SME owners never run, and three moves to fix it.

Thursday, October 29, 2026

A lot of owners try the wrong format, see no shift, and decide coaching doesn't work for them. Here's what a peer room is actually good for, what 1:1 coaching is actually good for, and a 3-check way to pick.

Thursday, October 29, 2026

HBR's review of meeting research found about 70% of meetings kept employees from the work they were meant to enable. Here's Verne Harnish's meeting rhythm, sized for an SME before year-end.

Thursday, October 29, 2026

Reps close 2.9x more deals at month-end and lose 11.4x more margin doing it, one major study found. Here's why the plan is the problem, not the rep, and three fixes.

Thursday, October 29, 2026

45% of US consumers used AI for a local business recommendation this year, up from 6% last year. Here's why schema markup won't fix your AI visibility, and what will.

Thursday, October 29, 2026

Jim Collins found that companies which broke away from average performance could name, with brutal precision, what they could be best in the world at. Here's the three-circle test and the goal that pairs with it.

Wednesday, October 28, 2026

Big-brand positioning is a decision, not a budget. Five questions, a one-sentence position and a five-touchpoint audit you can run this week.

Wednesday, October 28, 2026

Which jobs should a US small business hand to AI first? Published US data, a five-check test and a 30-day plan to pick one job, track one number and keep the decisions that matter.

Wednesday, October 28, 2026

Most small business owners already believe AI works, but barely one in ten has invested in using it properly. Here is the simple ladder for turning casual AI use into real, compounding productivity gains.

Tuesday, October 27, 2026

Vet and allied health practices rarely have a clinical problem. Here is how to find the real constraint, keep patients returning and build a 90-day growth plan.