Growth Strategies - What are the options for growing my business?

Growth Strategies - What are the options for growing my business?

Dec 3, 2021, 7:56:00 AM Business

Whether you are an SME manager, a member of the management of a large company or an entrepreneur, the “growth” of the company is probably one of your main concerns. In addition, it is often said that any business must develop and grow if it does not want to disappear one day. Indeed, the absence of growth reflects the inability for the company to innovate and demonstrates its inability to increase its customer portfolio, which leads it irreparably into decline. We must therefore seize the growth opportunities available to us. Otherwise, our competitors or even new players will do it. Finally, as a manager or entrepreneur, how can you stay motivated without seeing development prospects.

What growth?

In fact, there are many ways to grow. However, from a practical point of view, they generally only result in an increase in turnover and / or market share (existing or new markets). Quite naturally, our initial question is how to get this growth? To achieve an increase in market share or turnover, we will have to define a strategy. In strategic language, we will use the term "growth strategy" to name it.

Before addressing the different business growth strategies that may be available to us, it is important to determine what type of “growth” we want to move towards. Growth is vital in itself, but it can also have its share of complications. For example, when this growth is too great and we lose control. We must therefore be able to assume this progressively at the level of the organizational structure, the decision-making system, human resources, infrastructure, or even in maintaining the capacity to provide the promised level of service. This growth must also be profitable. Indeed, multitudes of companies are able to increase their market shares or their turnover, without generating sufficient profitability,

It is in order to obtain controlled and profitable growth that we will have to create an effective growth strategy, adapted to the possibilities offered by the markets and in line with the capacities and resources of our company & the Lifestyle of the Organization.

Market and type of growth

As mentioned earlier, it is essential to understand that every small business is in a different market situation. The market in question will have a direct influence on the growth of the company itself, regardless of the growth strategy that we have or are going to define. Three types of growth can be identified with companies

“Extensive” growth: the company grows by penetrating new markets by setting up in new countries or by launching new products. Before creating your growth strategy, it is therefore necessary (as with any strategy) to carry out a detailed analysis of the market (s) in which you are present, the targeted industries and / or the different geographic regions. Then, as a second step, it will be necessary to define what capacities and resources are available within the company for this growth strategy.

Obviously, everyone would like to be, at least, in a position of growth "carried" on his / her markets. Unfortunately, this is rarely the case. Either way, you have to be aware that if you are in this situation today, it may not last long (cycles tend to get shorter). Another situation is that of companies that are in a growing market, but these are not growing. This is usually due to an inappropriate business strategy, and not necessarily to the strategy of pure growth.So let us consider that whatever the market situation, we need to develop an effective and suitable growth strategy to develop the business.The orientation that we are going to set for the development of products and markets will give us precise and structured information. This will be useful to us for the development of our growth strategy.

Conclusion

Any basis for thinking about the growth of your business must therefore begin with the choice of the strategic option and the way to implement it. However, it is important to understand that creating a growth strategy is not just about the choices you make. These choices must be motivated by: The market situation: what are the possible options? Perhaps the market in which you are present will not allow you to implement a strategy of concentration. You will therefore have to look to another option.

 

Published by Harris Scott

Comments (1)

claudio-pires

Claudio Pires Feb 10, 2022, 2:01:30 PM

Good work!

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