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Find High-Speed Roads to Growth at Low Cost

Jan 24, 2008
All organizations should begin their search for high growth by looking into just the key questions they need to answer. This saves time, money, and effort while producing better results.

Having scaled down the search, you should also get help to reduce the costs of the search. There may be a database that already exists containing much of the information you want. There may be people who know major parts of the required answers and who can share that information with you at little cost to them. There may be a substitute piece of information that can further simplify the search.

Here are some ways to get that help:

1. Find out how the biggest successes have occurred in doing what you want to accomplish.

In the Goldcorp case of looking to find low-cost large gold ore deposits, you would talk to those who are familiar with acquired mine properties that have provided the most profits and cash flow annually compared to their purchase and development costs. From this research, you might determine that the best deals were all done after gold prices had been at low levels for many years.

If your current gold-price environment isn't like that, you may need to refine your search further to locate how those fared best who bought mine properties during a gold-price environment like the one you are currently experiencing. People who are regularly involved in financing such deals may well have learned how such properties were successfully selected. Since such financiers will be interested in assisting others who succeed with financing, valuable insights may be gained at no cost.

2. Look for ways to create new combinations of cost-reduction methods in answering your question.

From your interviews with those who know about the biggest successes, you will have discovered a number of different effective approaches to supplement free public data. Chances are, however, that no organization has combined several of these approaches.
Consider how you might combine those approaches sequentially to reduce the cost of your investigation. Let's assume in the Goldcorp case that some companies used tips from former employees, while others relied on talking to mining equipment suppliers, and still others got their insights from taking aerial photographs of the sites.

The easiest and cheapest of these resources are probably going to be the mining equipment suppliers. Talking to them first might reduce the number of acquisition prospects from every mine in the world down to as few as five mines. The next easiest to accomplish is probably an aerial photograph.

Combining those two resources, you may determine that you are interested in three mines. At that point, you could begin to look for former employees of those three mines to provide further insights and to validate what you think you know. If you only find the former employee information for one or two of the mines, that may be enough to locate a valuable investment opportunity.

Good luck in finding low-cost paths to growth!
About the Author
Donald Mitchell is an author of seven books including Adventures of an Optimist, The 2,000 Percent Squared Solution, The 2,000 Percent Solution, The 2,000 Percent Solution Workbook, The Irresistible Growth Enterprise, and The Ultimate Competitive Advantage. Read about creating breakthroughs through 2,000 percent solutions and receive tips by e-mail by registering for free at

http://www.2000percentsolution.com .
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