What is a Growth Factor and Why you Should Care
- trentandria
- Jun 1
- 1 min read
For Consumer Packaged Goods (CPG), Growth Factor is one of the most important metrics in growing organically or raising money. Understanding and planning for your Growth Factor will help you understand the capital and sales required to increase inventory (and therefore grow)!
Rather than write about it, we decided to try our hand at an infographic.
See below and let us know what you think - is this a clear and helpful description of this vital business metric? Did you already know about this concept?
If you like it, we hope you share it :).
This infographic really works! The visual breakdown of production cost vs. selling price made the Growth Factor concept click instantly for me. I especially liked the example comparing a Hermes bag with a Growth Factor of 9 versus a more modest 2—it clearly shows how scalability ties into financial strategy.
One thing I hadn’t thought about before was how crucial that “2x or more” benchmark is for sustainable growth. It’s a great reminder that pricing isn’t just about market competition—it’s also about fueling future inventory.
Nice job making a complex business metric feel simple and actionable. Definitely sharing this with a few people on my team.