Growth is more than a KPI—it’s a signal of vitality, relevance, and long-term viability. At DOXA, we view growth as a strategic imperative that directly contributes to a business’s equity value. Why should growth—especially organic growth—matter to firms considering their future? Because regardless of whether your goal is to sell, scale, or sustain operations, increasing equity value gives you optionality. It opens the door to better deals, more favorable capital access, and a stronger negotiating position when opportunity (or challenge) knocks.
In this first installment of our three-part series on Pathways to Increasing Equity Value, we explore how organic growth can serve as the bedrock of a high-value business. While future parts will dive into operational and capital structures, organic growth is the lever that offers the most control, the least risk, and—when executed correctly—the highest long-term reward.
Strategic Market Positioning: Go Narrow to Grow Wide
The most consistently high-performing firms don’t try to be everything to everyone. Instead, they lean into their niche and dominate it.
Over time, successful companies tend to develop deep expertise in specific markets or customer profiles. Those that double down—tailoring their value propositions, messaging, and services to solve distinct problems—become category leaders. That positioning makes them referrable, recognizable, and resilient.
Organic growth begins with a deliberate market strategy:
-
Define who you serve and why.
-
Develop specialized solutions tailored to your core customer.
-
Build branding and thought leadership that reflects deep understanding, not surface-level generalism.
This level of clarity makes it easier to command higher pricing, build stronger client loyalty, and differentiate yourself in crowded markets. Specialization also simplifies decisions around staffing, marketing, and carrier selection—all of which contribute to long-term growth and equity value.
Account Size: Rebalancing for Profitability
Too many firms confuse activity with progress. A large number of small accounts may keep producers busy, but they rarely move the needle on revenue or margin.
Enter the 80/20 rule. In most firms, 20% of clients generate 80% of revenue. Conversely, the bottom 50% of accounts can drain resources—account managers spend hours servicing clients that barely cover overhead.
High-growth firms ruthlessly analyze their book:
-
Who are our top-performing accounts?
-
Which clients are profitable and scalable?
-
Where are we over-investing relative to return?
Once that data is in hand, they act:
-
Sunset or reassign low-margin clients.
-
Set account minimums for new business.
-
Refocus efforts on winning and expanding large, profitable accounts.
These decisions don’t just improve the bottom line—they increase capacity for producers and service teams to focus on higher-value relationships, improving morale and margins alike.
Controlling What You Can in an Uncontrollable Market
It’s tempting to celebrate growth during a hard market. Premiums rise, renewals are strong, and revenue looks robust. But there’s a danger in mistaking market-driven revenue for actual sales performance.
We call this distinction growth rate versus sales velocity.
-
Growth rate reflects all revenue increases, including those due to premium inflation.
-
Sales velocity isolates new business acquisition—the purest measure of sales performance.
When the market softens, growth rate will taper. But firms that have built real sales velocity through proactive strategies, pipeline management, and client segmentation will continue to thrive.
High-performing firms invest in:
-
Diversifying product lines and revenue streams
-
Developing partnerships that open new verticals or geographies
-
Building a culture centered on new business development—not just renewals
They also establish protections: revenue stream diversity, segment hedging, and scenario planning, allowing them to weather market cycles and maintain momentum even when premiums drop.
Human Capital Strategy: The Engine of Organic Growth
People drive growth—period. And human capital strategy is one of the most powerful levers a firm can pull to enable sustained, scalable success.
Key elements include:
1. Sales Leadership
You need leaders—not just managers—who can:
-
Set and communicate clear growth expectations
-
Design compensation models that reward behavior, not just outcomes
-
Create accountability systems that drive consistent performance
2. Recruitment Strategy
Hiring must reflect your long-term goals:
-
Early-career talent brings fresh perspectives, long-term runway, and bench strength for future leadership
-
Seasoned producers offer immediate book value and strategic relationships but require cultural alignment and thoughtful compensation
DOXA M&A advisors often recommend a structured talent pipeline that balances both. And remember: recruitment without development is churn.
3. Capacity Planning
Organic growth requires service infrastructure. The rule of thumb? For every additional $250K in new business, plan to hire at least one support FTE.
Yes, it’s an investment—but failing to scale your support team leads to burnout, turnover, and stalled growth.
Anticipating the Talent Cliff
The insurance industry is aging—and fast.
According to the U.S. Bureau of Labor Statistics, roughly 400,000 workers are expected to leave the industry by 2026. Worse, 50% of the insurance workforce is projected to retire by 2028.
For firms aiming to grow—and perhaps eventually sell—this presents both a challenge and an opportunity:
-
Challenge: A talent vacuum can slow production and reduce valuation.
-
Opportunity: Firms that build structured recruiting and retention programs will gain market share and look more attractive to buyers.
High-value firms:
-
Develop training programs to accelerate new producer ramp time
-
Build incentive structures to retain high-performers
-
Implement succession plans that de-risk founder or partner exits
These human capital investments don’t just protect current revenue—they future-proof your firm.
Organic Growth Is King
In our work with high-growth firms, private equity investors, and M&A advisors, one theme is consistent: organic growth is king.
You can optimize your operations. You can structure your capital. You can even pursue strategic acquisitions. But if you haven’t built the muscle of organic growth, your firm will eventually hit a wall—or risk being undervalued in the marketplace.
At DOXA, we believe organic growth is the non-negotiable foundation of any serious enterprise. It’s the indicator of real market traction, internal alignment, and future upside. And it’s the first lever any business should pull in pursuit of higher equity value.
Next: Operational Efficiency: Building Scalable Systems for Long-Term Value
Want to learn more about building equity value into your firm’s DNA? Connect with our team at DOXA for a confidential conversation about growth strategy, succession planning, or M&A readiness.
