As private equity (PE) firms look to scale their portfolio companies, achieving alignment across marketing, sales, and customer success is paramount. Revenue Operations (RevOps) provides a strategic framework to achieve this, driving growth and operational efficiency.
Revenue Operations, or RevOps, streamlines processes across core business functions, ensuring that every team is aligned towards common business goals. By fostering better communication, data utilisation, and breaking down departmental silos, RevOps enables companies to adapt quickly to market changes and optimise their revenue potential
Traditional/Siloed: The above illustrates how businesses appoint divisional responsibilities to drive growth. This approach can often affect internal alignment, a poor customer journey and restrictions on scaling a business. This is therefore multiplied within PE Firm portfolios.
For portfolio companies, especially those in varied stages of growth, integrating a RevOps model can lead to significant advantages:
RevOps Approach: Compared to the Siloed approach, RevOps enables more alignment, better customer experience, omnichannel sales and marketing, and the ability to scale across an investment portfolio. While the above is a simplified model, putting this into practice requires a partner who is aligned to the RevOps approach.
While the benefits of RevOps are clear, implementing it effectively requires expertise. Having a partner with the necessary skills to support this transformation can be invaluable:
Face it, cost is a major decision-making factor for all PE Firms. This is also a major reason why RevOps wins. When it comes to partnering with a RevOps partner like Secret Source here are just some of the cost saving considerations;
As a shared service model, Secret Source deploys the right resources, skills, and technology precisely where they're needed across your portfolio companies. Eliminating redundant hires and infrastructure investments.
With over 10 years of established operations spanning the U.K., U.S., and Canada, Secret Source handle everything from strategic planning to transactional marketing execution, removing the burden of equipment procurement, software licensing, recruitment fees, training programs, and performance incentives.
Direct costs, along with the often-overlooked expenses of team management represent substantial savings to your bottom line.
Perhaps most valuable in the PE context is the ability to scale resources up or down overnight. Whether rapid growth demands immediate support or right-sizing and divestment require swift adjustments, Secret Source RevOps teams not only enable healthier margins throughout every stage of the investment lifecycle, when it comes to exit, these costs can be scaled down easier than internal teams.
This agility and resilience ensures your portfolio companies can adapt to market shifts with the precise skills required, when they're required, transforming what would traditionally be fixed overhead into a flexible, performance-aligned investment.
"When Secret Source delivers 70% savings to one portfolio company, that's impressive. When you multiply that across your entire investment portfolio? That's transformational." (Secret Source Marketing)
Secret Source is saving businesses a whopping 70% saving off the bottom line compared to more traditional alternatives. So, imagine the multipliers across a portfolio or group of companies? A Harvard Economics Degree is not required to work out that this will have a massive impact!
Then there are the 'opportunity costs' of not doing or delaying taking action. The 'Cost of Inaction' (COI), is a real thing, time spent on planning and preparing with delays in deployment is costing your portfolio businesses money, eroding your investment and delaying the inevitable exit. We'd love to be able to calculate the COI (cost of inaction) across PE Firm investment portfolio, but it is obviously not a popular calculation! Secret Source RevOps teams from signature of a statement of works (SOW) to the kick-off session with just 2 weeks notice! A 'Source Team' can then deploy resources within one week of a kick-off meeting being held. This is therefore cutting down the COI 99%
"The cost of inaction is invisible but devastating. Research shows that companies delaying digital transformation initiatives lose an average of 25% of their market value over five years (McKinsey). Every month spent planning instead of deploying erodes your investment and delays your exit. The question PE firms rarely ask: What is the cost of inaction across our entire portfolio?"(Secret Source Marketing)
For PE firms aiming to drive consistent growth across their portfolio, embracing a RevOps approach with the right partner can be transformative. RevOps not only enhances internal efficiencies but also propels companies toward sustainable success. Whether operating in the U.K., U.S., or Canada, having a partner with the expertise to navigate this landscape can make all the difference. Investing in such a partnership is not just an operational decision, it's a strategic move towards long-term growth.
If you would like to discover more about our active projects within the PE Firm space, including the ROI and efficiencies gained, then let's talk?
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Secret Source don't just talk the talk, we can demonstrate live RevOps Projects all over the world. Come and start your journey by simply booking a meeting with one of our specialists today!