The importance of business growth

Business Growth. The process of improving some measure of an enterprise’s success. Business growth can be achieved either by boosting the top line or revenue of the business with greater product sales or service income, or by increasing the bottom line or profitability of the operation by minimizing costs. www.businessdictionary.com definition

Successful businesses can only ensure sustainability by continually identifying opportunities for business growth. To stay ahead of the competition, your business must always be on the lookout for new ways to develop. By failing to retain a competitive advantage, you can easily fall behind your competitors and seriously impact your market position.

Business growth can be measured by examining key factors such as:
Business Growth

  • Revenue
  • Market Share
  • Profit
  • Sales
  • Staff

Where to begin for business growth

Before you can devise an effective growth strategy you need to have a clear picture of how your business is performing now. Your business coach will assist you in developing this and will help you create a realistic vision for the future.

To find out where your business is at now, ask yourself these questions:

  • Is your business running efficiently?
  • Do you have an effective marketing strategy?
  • Is your business ready for growth and expansion, or is it working to full capacity?
  • Do you have the resources to expand?
  • Are your systems ready?

Three options for business growth

There are only two ways of increasing your customer base or market share. Either you take customers from other competitors and / or attract brand new customers.

1. Increase market share

Achieving this requires a deep understanding of both your own customers and your competitors. When planning to increase your market share, you need to take account of the following:

  • Who your existing customers are
  • What your strengths are
  • What your competitors’ strengths are
  • Why customers buy from you
  • Why customers buy from your competitors
  • What your sustainable competitive advantage is
  • If you are you losing customers, why?
  • Can you bring back previous customers?
  • Do you have an effective marketing strategy?
  • Do you have an effective sales team?

2. Diversify or expand your product range

Diversification is a strategy used by many businesses for business growth. For this method to be successful, you need to carefully weigh up the costs and the benefits before you expand.

You can expand or diversify by supplying:

  • new products or services to existing customers
  • existing products to new markets
  • new products to new markets

Generally it is less risky to sell existing products and services to existing customers than it is to create a new product or service for a new market.

3. Form a joint venture or partnership

Joint ventures and partnerships can offer significant benefits to both parties and save money and resources by sharing business functions such as administration, accounting, sales and marketing.

Contact Lorraine, Strategic Marketing Specialist | Business Coach and Life Coach for a free assessment of your business growth