The difficulty tripling $10billion and tripling $10 million would be “no”difference
Recent performance of NVIDIA is near 3.65x quarterly revenue growth YoY amount to US$26billion. There was the Nippon Yusen(Japan) track record that new business (ONE) generated US$40billion revenue and $20billion net income in the 5th year of startup incorporation. The R&D industry sees extraordinary growth and exponential returns several times in decades. But how shall we reproduce that success in the next decades.
Which is more difficult, tripling $10billion or $10million?
There are many entreprenuers who are trying to tripling US$10million in a year. But there are very small size of CEOs of $10billion company who are aiming to triple their revenue YoY.
There is one statement that hits me. It assumes “the difficulty of tripling $10bn is as same as tripling $10million”. Because the resource is limited for $10m companies and it will be similary difficult to make triple figures by limited capital.
The art of tripling the revenue
One of the our HITSERIES CAPITAL portfolio, TANAAKK generated tripling performance in 3 consecutive years. They are challenging triple this year but after 27x growth, the momentum is quite questionable. But to regain the momentum, the key will be to solve it by simple question.
Why they could do it in 3 consecutive years, they cannot do it in the next year?
There will be lot of answers but I will not write down it. The most important thing to do is to prioritize the sense of tripling and if there is no results, keep the question why there are lot of things what I can do so easily and what I cannot realize yet(tripling in the fourth year)
There will be extraordinary power required to make triple revenue happen. You have to find laws of power like nuclear fusion or particle physics.
Pose question, feel answer
This is the mental training. If you can easily use your arm to drink your cup of coffee, why you can successfully do it without failure. If tripling revenue is the same problem to accomplish with limited controllable resources in limited time and space, then there exists the metapher if you can drink the coffee, then you can triple $10m. And tripling $10b seems the similar question. If you can fly from Tokyo to Singapore without mortal failure without difficulty, then what is the difference between tripling $10bn? (To make body safely to be in singapore tommorow from Tokyo today is very difficult problem if you all let do it by machine itself. ) It’s fascinating question, the trial timing of us to check if tripling $10bn has same difficulty as $10mn is planned to be experimented within ten years from now.
Supposed real problem of tripling $10billion company is that, the CEO and managements is already materially wealthy and satisfied with stable position, cannot generate motivation of tripling their revenue.
How to be humble
It is very difficult to keep founders curiosity towards the universe and society at highest level than when they started it. How to continuously generate the driving force to grow sharper and bigger is what the question the founder should keep in mind every night.