Business Strategy And Development – A clear growth strategy is more than just a marketing strategy, it is an important cog in your business machine. Without one, you are exposed to a volatile customer base and market volatility. So how do you plan to grow? If you’re not sure what steps are needed to develop an effective growth strategy, we’re here to help. Business Growth Business growth is the point where a business needs more ways to expand and generate profits. This can happen when a company increases sales, produces more products or services, or expands its customer base. For most companies, growth is the main goal. With this in mind, business decisions are often made based on what will contribute to the company’s future growth and overall success. There are several ways to facilitate growth, which we will explain in detail below. Types of Business Growth As an entrepreneur, there are several ways you can grow. Business growth can be divided into the following categories: 1. Organic In organic growth, a company expands through its operations using its internal resources. This is in contrast to looking for external resources to support growth. An example of organic growth is making production more efficient and producing more in a shorter time, which leads to more sales. The advantage of using organic growth is that it relies on self-sufficiency and avoids borrowing. In addition, higher revenues from organic growth can help fund more strategic growth approaches later on. We will explain below. 2. Strategic growth involves developing initiatives that help your business grow in the long run. An example of strategic growth could be launching a new product or developing a market strategy to appeal to a new customer. Unlike organic growth, these initiatives often require significant resources and funding. Companies often take an organic approach in the hope that their efforts will generate enough capital to invest in future strategic growth initiatives. 3. Internal internal growth strategies focus on optimizing internal business processes to increase sales. Similar to organic growth, this strategy relies on companies leveraging their internal resources. Internal growth strategy is the most targeted use of existing resources. An example of internal growth is reducing wasteful costs and working more efficiently by automating certain functions instead of hiring more employees. Internal growth can be more difficult because it requires companies to look at how they can improve their processes and become more efficient, rather than focusing on external factors such as entering new markets to drive growth. 4. Mergers, Partnerships and Acquisitions Although riskier than other forms of growth, mergers, partnerships and acquisitions offer high rewards. There is strength in numbers, and a well-executed merger, partnership or acquisition can help your business expand into new markets, expand your customer base or improve your product or service offering. Business Growth Strategies Growth strategies allow companies to expand their business. Growth can be achieved by, for example, adding new locations, investing in customer acquisition or expanding your product range. A company’s industry and target market influence the chosen growth strategy. Devise a strategy, consider options, and include some of them in your business plan. Depending on the type of business you are building, your growth strategy may include: Adding new locations Investing in customer acquisition Franchising opportunities Expanding your product line Selling products online across multiple platforms Your specific industry and target market will influence your decision. It is almost universally true that acquiring new customers plays a major role. Not sure what that would look like for your company? Let’s look at some measures to achieve growth. How to develop a business successfully? Use the growth strategy model. Select your target growth area. Conduct market and industry research. Set growth goals. Plan your action. Identify your growth tools and needs. Execute your plan. 1. Use the Growth Strategy template [free tool]. Image Source Don’t start without planning and documenting the steps of your growth strategy. We recommend downloading this free growth strategy template and developing the recommendations in the accompanying section to outline your organization’s planned growth process. 2. Choose your target growth area. Nice that you want to grow with your company, but what exactly do you want to grow? Your business growth plan should focus on specific growth areas. Common areas of strategic growth initiatives include: Expansion of the workforce Expansion of current office, retail and/or warehouse space Adding new locations and branches Expansion into new regions, locations, cities and countries New products and/or services add Expand purchasing locations (eg, sell in new stores or open an online store) Sales and/or profit growth Customer base and/or customer base growth rate Your growth plan may include more than one of the listed initiatives. The above makes sense – the best growth doesn’t happen in a vacuum. For example, an increase in unit sales will increase sales, and additional locations and employees will be added to support sales growth. 3. Conduct market and industry research. Once you’ve chosen what you want to grow, you’ll need to justify why you want to grow it in that area (if you can). Researching the state of your industry is the best way to determine whether the desired growth is necessary and possible. Examples include conducting surveys with existing and potential customers, holding focus groups, or reviewing existing industry research. The knowledge and facts learned in this step will better define the time frame, budget and end goal of this project to set expectations and growth goals. This brings us to step four… 4. Define your growth goals. Once you’ve determined what and why you’re growing, the next step is determining how much you want to grow. These goals should be based on your ultimate desire for where you want your organization to be, but they should also be achievable and realistic. That is why setting goals based on industry research is valuable. Finally, take steps to quantify your goals in terms of metrics and timelines. Aiming to “increase sales by 30% quarter-over-quarter over the next three years” is much clearer than “increase sales”. 5. Plan your course of action. Then define how you will achieve your growth goals using a detailed growth strategy. Again, we recommend writing a detailed growth strategy plan to gain your team’s understanding and buy-in. Download this template This action plan should contain a list of activities to achieve your growth goals, deadlines, team or responsible people and resources. 6. Define your growth tools and requirements. The final step before implementing your plan is to identify any requirements your team may need along the way. These are specialized resources that will help you achieve your growth goals faster and more accurately. For example: Funding: Organizations may need capital investments or internal budget allocations to complete this project. Tools and software: Consider what technological resources may be needed to accelerate the growth process and/or gain insights. Services: Growth can be better achieved with the help of consultants, designers or planners in specific areas. 7. Execute the plan. Now that you’ve completed all of your planning, resource-setting, and goal-setting activities, you’re now ready to implement your company’s growth plan and drive business results. During this time, you need to hold your stakeholders accountable, keep the lines of communication open, and compare initial results with expected growth targets to see if your planned results are achievable or if anything needs to be changed. Your growth plan and implementation tactics will ultimately depend on your business, but there are some universal strategies you can implement when you start out. Featured Resources Free Growth Strategy Template Please complete this form to access your template. Businesses can implement different growth strategies to expand their business and revenue. Examples of growth strategies include: Examples of growth strategies Viral Loops Milestones Word of mouth ‘If they are tickled, we are tickled’ Personal branding Market entry Market development Product development Growth Affiliates Acquisitions Organic growth Social media Excellent customer service 1. The Viral Loop Some growth strategies are designed to to stand completely on its own. They need an initial push, but ultimately rely mostly (if not exclusively) on user enthusiasm to keep them running. One strategy that fits the bill is the viral loop. The premise of the viral loop is simple: someone will try your product. They provide a valuable incentive to share it with others. They agree and share with their network. Sign up for new users, see the rewards for yourself and share with your network. To repeat. For example, a cloud storage company might offer customers