Business growth is a company’s progress in terms of economic benefits, number of customers, number of employees, infrastructure, technology, brand consolidation, and production of goods and services. When an organization meets a need in the market and achieves reasonable customer satisfaction. It is performing one of the essential principles to maintain itself and achieve business growth.
Benefits of Business Growth
- Increase in economic income: The most notable characteristic when experiencing business growth is the increase in monetary gain, which offers various advantages, such as hiring more personnel, expanding infrastructure, and improving equipment, technologies, and other tools.
- Process optimization: When a company grows, it is necessary to correct and eliminate possible failures and irregularities to make the processes more effective and efficient in their work, reducing production times and saving money.
- Improvement of logistics: Various aspects of logistics within the company improve. Such as transportation, the storage system, organization of products, quality control, and distribution of goods.
- Talent attraction: The company’s interest in talented people increases. So it is less complicated to attract trained personnel to work within the organization.
- Brand positioning: Consolidating the brand image in the minds of consumers becomes more significant.
- Job creation: The need for more employees increases to fill the new vacancies that arise as the company grows.
Types of Business Growth
- Organic growth is the growth experienced by a company using its resources.
- Strategic growth: Refers to the design of new strategies that propose long-term business growth.
- Growth by merger: It consists of the union of two or more companies to combine assets and form a new company.
- Growth by acquisition: It is when a company acquires another of a smaller size to become partial or complete ownership of it.
- Internal growth: Refers to the investment made by a company in its organization to promote its development and increase its production capacity.
Stages of Business Growth
Below are the 5 stages of business growth that Neil Churchill and Virginia Lewis proposed in the Harvard Business Review, whose publication date is 1983.
Existence of the Company
He defines the most basic strategy for the company to stay alive in the market. At this point, the organization must attract customers and offer products to satisfy some demand.
If the company manages to pass the first stage, it has a viable product. Which means that it already has active customers and a production process to cover said demand.
The fundamental key is to grow in size and profitability to continue concretizing. Your business expansion, which in this case would go to stage 3.
Business success comes at this stage, which is when real consolidation in the market is achieved. However, at this point, the organization owner must decide whether to use the achievements to continue expanding or to keep the company stable.
In continuing to invest, the next step is considered: business takeoff. The main problem is knowing how to increase and finance this growth.
Finally, if there is a successful business takeoff, business maturity is about controlling profits and eliminating failures during rapid business growth. At this stage, the presence of trained professionals, optimized production processes, appropriate technologies, and more complex systems is evident.
Business growth is about the processes that enable a business to continuously improve and also drive the organization to achieve pre-planned goals or milestones of success. When a company optimizes its internal processes, improves its organizational communication, and recruits more personnel. Its economic income increases, among other progress.
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