In a recent webinar on IMTS+, Mike Watkins and David Capkovitz, cofounders of EBITDA Growth Systems (EGS), shared how their framework, the Capability Maturity Model (CM²), helps businesses assess and improve five core areas to streamline growth: marketing, sales, operations, finance, and management. "Companies that engage in planning grow 30% faster than firms that don't." Watkins states. But many manufacturers either neglect planning or fail to execute it properly, which stifles long-term success. Stability vs. Growth Many business owners believe that maintaining stability is enough. However, as Capkovitz warns, "If your business is sitting still, it's most likely turning backward." Without a structured plan, companies risk stagnation, inefficiency, and lost revenue. EGS emphasizes that a business plan should be a dynamic, evolving process that adapts to changing market conditions. Most importantly, the plan aims at success over stability. When it comes to business plans, Watkins says “Some people push back … but, the business plan isn't the goal. It's the planning. That's the goal.” Revenue vs. Profitability While revenue growth is often the primary focus in any business plan, Watkins stressed that profitability is the true measure of success. "You can't go to the grocery stores with top-line revenue. You go to the grocery store with profits. We want to engage in maximization of profits." Many manufacturers achieve significant revenue but struggle with slim margins due to poor financial planning and inefficiencies. EGS clients who implement structured planning have seen profit margins soar to as high as 40% — a stark contrast to the industry average of 5-10%. Five Core Business Functions for Scalable Growth EGS’s CM² model assesses business maturity across five essential functions: Marketing – Driving brand awareness and attracting ideal customers Sales – Converting leads into consistent revenue Operations – Streamlining production and improving efficiency Finance – Managing cash flow, profit and loss statements, and profitability Management – Developing leadership, succession planning, and employee engagement. The value of this five-pillar approach is that, in Capkovitz’s words, “You can't be optimized in one in an ad hoc in another.” If one area lags, so do the others. But EGS’s CM² model gives you a defined process to tackling this issue. “The nice thing about this being broken up into five different lanes is you have a bright line to follow,” Capkovitz notes. Execution: Key To Success A plan is only as good as its execution. Watkins emphasized that tracking key business metrics monthly is essential. "Without disciplined execution, even the best plans fail," he says. Businesses working with EGS report an average revenue increase of 15-30% annually, simply by improving execution and accountability. Annual Business Planning with EGS For manufacturers looking to take the next step, EGS hosts an annual business planning event in Golden, Colorado, with a new session planned for North Carolina in 2025. These events provide machine shops and manufacturers with hands-on coaching and an actionable roadmap to achieve measurable growth. “Our brand promise is to double the value of your company in three years and give you your money back.” Next Steps If interested in hearing more on how to transform your business, increase profitability, and secure long-term success in the booming manufacturing marketplace, watch the IMTS webinar here.
Learn how small and mid-sized manufacturers can achieve double-digit growth through a five-step plan that focuses on strategic planning, profitability optimization, and effective execution.
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