Types of Business Growth
Business Growth is a goal in every business. This could be around looking at expanding your product or service range. It could also be around expanding your footprint into new markets. Business growth remains the ultimate goal of a business owner or the executive team. You need a strategic plan to determine the best way to grow your business. It would be best if you also had a solid understanding of how to achieve the businesses growth.
Listed below are four types of business growth strategies. Evaluate your business, then determine which strategy is the best for your growth.
Organic Business Growth
Organic Growth is an ideal strategy for a new business or a business tapping into new markets.
Organic Business Growth is a basic and effective means of growing your business. Organic Growth focuses on producing higher volumes of product. In some cases, companies concentrating on Organic Growth may buy a larger storefront or larger production facilities. Companies may increase shifts at their production plants, ensuring they manufacture more product. Businesses focused on organic growth need to expand to meet their customers growing demands. They also need to fulfil their need to reach more customers.
New businesses or businesses who are penetrating new markets should use this strategy as these businesses stand the risk of running short on their products. Thus, stand the risk of not being able to meet their customer's demand for their products. Although this is not a sustainable growth strategy, it does set a business up for future success.
Strategic Business Growth
This strategy is ideal for businesses who have reached their organic growth milestone. This strategy is for businesses looking to exploit new markets. Strategic Business Growth is an important stage for businesses that have reached their plateau. This strategy allows companies to focus on their long-term plans. It also allows the business to use retained capital to meet their business goals. This strategy is difficult for new businesses, as well as for businesses who are producing less product than their customers currently demand.
This strategy achieves growth by increasing advertising or expanding your product range increasing your inventory list, thereby reaching new untapped markets. Strategic business growth requires an investment, the investment generated by your Organic Growth. A business needs to understand that there will not be a sudden business acceleration. A Strategic Growth Strategy will gradually increase sales and revenue.
Strategic Growth Strategy is excellent when looking at long term business growth.
Although this is a risky strategy, it has the most potential for success. Merging, acquisitions, forming a partnership with another company can have some unique benefits. It can also create opportunities for market expansion for a business.
A skilfully planned acquisition or merger can enable a business to enter new markets or manufacture more products. By acquiring another company, you can also gain customer loyalty developed by another brand.
This strategy requires a financial investment and change. This strategy forms part of the long term business growth plans of a business.
Internal Business Growth
The Internal Business Growth Strategy is the most challenging and most straightforward way to boost business growth. This is a practical strategy which is ideal during a lull in outward business growth.
This strategy looks inwards instead of outward. It looks at the businesses current resources and processes determining how to use them better. For example, implementing new or automated workforce management systems.
This strategy is often challenging because businesses must change how they conduct business. This process can be scary for employees and managers as it can create uncertainty.
In times between organic and strategic growth, this strategy is a good strategy to follow. This strategy is a great way to maximize your resources without a significant investment. Internal Growth Strategy allows a business to continue production using fewer resources. Recouping any costs spent maximizing processes.
Developing a strong business growth strategy is essential for your business success. It prevents your business from wasting time and money. It is crucial to determine which strategy is the best for your business.
For specialist advice on determining how to grow your business reach out to Coach Sonja Shear