January 2022
As covid continues to bring uncertainty around near-term growth, we are seeing those that are
reshaping their long-term strategies in response to its impact are accelerating their growth by
harnessing the opportunities that covid presents, instead of suffering from its negative impact.
Bold and strategic leaders are finding ways to succeed and investors with clear-eyed optimism about
growth will find those winners and support them. Business leaders predict that by 2026, half of their
revenues will come from products, services, or businesses that haven’t yet been created. According
to the latest McKinsey Global Survey, more than one-fifth of surveyed business leaders name
building new businesses as their companies’ top strategic priority.
There’s a lot to be optimistic about, despite the daily challenges, and we’re seeing significant
winners taking advantage of the tailwinds;
– E-commerce expanded like never before transforming all areas of retail across customer,
supply & fulfilment, processing and payments
– Digitisation and automation adoption took a quantum leap transforming everything from
employee collaboration, customer channels and core internal operations such as R&D,
production and back-office as well as supply chains with things like last mile delivery
changes, migrating assets to cloud, building redundancies into supply chains
– Workforce optimisation opportunities through remote and hybrid working arrangements
– Wide-ranging government interventions spurred new business models, such as virtual
healthcare
– Higher savings, home values, and equity prices increased disposable cash and changed
investment objectives
– Corporate balance sheets grew stronger as assets and equity growth outstripped the rise in
debt
– Increased innovation caused a surge in entrepreneurship, seeing 400 new unicorns and
record-high fundraising levels
As with all opportunities, risks are not in short supply and should not be underestimated either. The
impact of inflation, geopolitical risks, supply chain shortages, mental health challenges and labour
mismatches are all very real risks and must be considered.
It’s never been more important to think strategically about the future and position yourself for
growth amidst change while understanding all the risks. Reagan said it best when he said “there are
no great limits to growth, because there are no limits of human intelligence, imagination and
wonder”. Risks can be overcome or managed, if the growth plan is carefully considered.
Delivering a future that optimises how we live, work and play amidst our covid reality is a group
effort. From entrepreneurs to investors, business leaders to consumers, we’re all going to play our
part in creating our future. At SeventyTwo we’re looking for the fast-growing companies with the
highest potential so we can empower them with strategically aligned investors.
So if you’re reading this, I’d love to know what are you seeing our there? Who do you believe is one
such company poised for exceptional growth?
Tell me why “You. Love. That. Company”.
