Do you know what business growth is? Well, in this post, we get to know more about it. Well, we all want to own successful businesses, and to be successful a business must grow.
A business can be defined as a transaction between two people; one sells, the other buys. However, for a successful transaction, both must agree on terms.
A seller always makes sure they gain from the sale. A business can also be defined as providing goods and services for the purpose of gaining profit.
How to start a business
Starting a business is easy these days. With technology, one can just be done in less than 10 minutes and your business is legal.
However, before starting a business one needs:
- Have a plan- this is how you will implement different aspects of the business.
- Find a name- this is what your business will be associated with.
- Product- this is what you will be selling.
- Registration- it is making the business legal.
- Hire the right team- they will be responsible for dealing with customer needs.
These are just a few things to do before starting a business. To save yourself one needs to be careful before making this step.
There are many things a business needs to be successful.
It all comes down to these things:
- The team- the right team is always ready to deliver quality goods and services.
- Quality product- quantity is not enough the product must be of high quality.
- Customer treatment- customers are not the same, they need to be treated differently.
- Marketing- you need to have an awareness strategy to reach out to many.
- Online presence- you need to have a website, blog, and social media platforms.
- Good leadership- everyone needs to be shown the way at a time.
There is more to consider to make your business a success. A business starts with just an idea and after careful planning and inputs, it becomes a source of income.
Well, for an idea to become all that one needs research and proper planning. It’s said, “failure to plan is planning to fail”.
Most of the time businesses fail for a lack of planning.
Here are also other reasons why businesses fail:
- Hiring the wrong team- employees are the support for your business, one should get the best suited for the job.
- Bad planning- every business needs proper planning and strategies These are the guidelines to your business success.
- Losing control of finance- financial books should always be kept straight. Without finances, the business will fail.
- Trying to do it all- you must have the right product to sell. You can’t provide everything.
- Unsustainable growth- expansion needs careful market research, don’t just grow because you have an opportunity.
Businesses too face problems that make them unable to be successful. A business therefore should have the right team. It should have the right management that keeps it growing and reaching targets
What are the types of business growth?
1. Organic business growth
This strategy taps into focusing more on the business. This means that expanding storage spaces, producing more goods and services.
It also means expanding to accommodate more goods and service delivery. Such an approach is effective, especially with new markets.
This plan means that the business doesn’t run out of products and services. Also, means that the business meets the requirements of all the people.
2. Strategic business growth
It’s a long-term business plan; it’s not as same as organic but relies on it to grow. This plan involves using money and resources to make sure the business keeps growing.
Such plans can include marketing; which is a way of creating awareness and increasing reach. Results may not be instant but at long last the business booms.
This plan is essential, helps the business keep focus as it grows.
3. Partnership/Merger/Acquisition
It’s a plan where one business merges or buys another business. This plan is risky but has greater rewards.
With this partnership, a business can benefit by using the other business’s clients, laid ground, and the recognition it has. Growth also is instant.
4. Internal Business Growth
This is auditing your business internally. Checking on resources available and how best they can be utilized to grow the business.
It also checks on workforce management and many business aspects. It’s a bit challenging for all teams must work together.
Change must be done without affecting product and service delivery. However, it’s one of the best ways to maximize resources without running out.
This means that costs are saved, business continues to operate with low resources and greater profits. Every business needs a strategy to keep it growing.
Without plans, a business is doomed to failure. It’s a bit challenging running a business however with the right resources it’s easy to grow and succeed.
What is important for business growth?
Growth is crucial; it makes the business run. Growth gives the business an opportunity to reach wide markets acquire resources and more.
Here is why it’s important:
- Market reach- as the business grows one can target many clients easily. People are easily attracted to a business that is growing.
- Identify new opportunities- there is a wide range of opportunities that are available every time a business reaches new levels.
- Product and service delivery- an established business is able to handle a wide range of clients and provide them with all they need.
- Increase sales- the more people transact with you the higher the sales.
- Provide opportunities- as more market options open the business provides more jobs and opportunities for business to grow.
Every business needs growth for it to survive. Growth opens up opportunities for businesses to reach global market levels.
What is a business growth strategy?
This is a plan that one can use to make sure the business grows. These are plans that ensure your business is on the right path to success.
It’s what you will use to achieve business success. They help you shape the business to accommodate success layers.
What are the 4 growth strategies?
1. Market penetration
This getting a hold of the market. It means increasing sales of existing products and services. It involves beating the competition and making the clients stay.
One can accomplish this by:
- Offering discounts.
- Lowering prices.
- Distribution support
- After-sale services and more.
2. Market development
This is exploring untapped markets. Making sales to new clients; it’s expanding the market. To do this one has to have adequate information.
One must have an analysis plan and ways to grow from the existing market. It is easier to accomplish this by:
- Exploring new markets.
- Acquiring and selling to international markets.
- And many more.
3. Product development
A product is what clients will be getting from you. New products often get the market excited and thus can be a good way to attract customers.
A product markets the business; one needs to have quality over quantity. A good product will ensure your business grows.
One can accomplish this by:
- Having a quality product.
- Providing the best on time.
- Being with the right sales team.
- Providing more information on the product.
- And more.
4. Diversification
This is launching new products and services to a new market. This is risky but the rewards are amazing. Going to a new market with a new product is starting up.
It can be divided into:
- Horizontal- can be purchase or sale of the existing product to the existing clients.
- Vertical- choosing another product over the current product.
- Concentric- new products but uses the same aspect of the sale with the existing range of products.
- Congrolemate- having a new product or service that isn’t related to the existing products.
What are the four stages in the growth of a business?
1. Startup
This is the initial stage of the business growth where one explores different markets, meets new people, comes up with strategies, and more.
It’s simply where takes time validating the idea. Making it viable and bringing it to life. It’s where also one gets to encounter challenges.
However one can grow the business with the right plan and team. It takes well-calculated moves to take the business to the next level.
2. Growth
This is where one uses strategies to grow the business. Here you get to know how your plan is performing.
One needs however to have business goals that will ensure the business grows. These goals should be achievable and realistic.
Have the right team, product, vendors, and the best managing skills.
3. Maturity
This stage means the business is set and has a spot in the market. This also means it’s ready to accommodate new clients.
The business has established assets and is secure. It means it’s dependable and consistent; it’s able to complete transactions easily.
It also means the business is recognizable and brandable, it maintains its market position. It’s easy for it to expand into new markets.
4. Renewal/Decline
This step of business growth means that your business is set. It’s easier for this business to fail without the right management.
In a case where the business declines there are two options:
- Reinvest- using money and assets to bring the business back.
- Cash-out- this involves selling the assets and business aspects.
However, to avoid the decline one needs to have a good plan, the right team, and proper management of assets and finances.
To achieve business growth, one has to involve a series of steps and plans. Success is not overnight the plans have to mature first.
Without the right plans, the business is going to fail, the team you hire and the management traits will determine business growth. All these factors into business growth and success.
Sometimes, it’s challenging but we learn from challenges. It’s not a straight way process.
