7 Different Ways to Grow and Develop your Business
As entrepreneurs, we do not necessarily hope that our companies will grow big, but we always hope that they will develop. So what are our alternatives if we do not intend to create a big company?
Seven alternative growth scenarios
Whether we grow out of need or desire, we, as owners, can choose from at least seven alternative growth strategies for the development of our businesses. These can be seen in the “Growth Star” (see figure) that illustrates seven different directions to follow and that these directions are all inter-connected. Businesses often grow diff rent areas at the same time in different ways and one form of growth can lead to another.
For example, we may want our business to become the best within its fi eld. We therefore, concentrate on increased quality development of our products (scenario #5: quality growth). In the long run, this could mean that the company can raise its prices and thereby achieve subsequent income growth (scenario #7: income growth).
Another example, could be that we focus on penetrating new markets with our business, and on internationalizing (scenario #2: market growth). Such a growth plan can, in some instances, lead to the business becoming mature enough to be bought up or open the possibility of us buying up others. (scenario #3: financial growth).
Finally, there are also many smaller businesses that want to grow through partnerships and alliances that generate the expertise to solve greater challenges (scenario #6: network growth). Such a focus can also result in the creation of entirely new products and services previously unseen within our existing market (scenario #4: idea and product growth).
Although the seven growth scenarios are connected and may not always be separable, the Growth Star provides a common language with which to talk about our alternatives and preferences. In this way, it can be used to initiate a dialogue on the future development of the business, with any business partners, our advisory board or the bank.
Suggestions for Next Steps:
- Prepare a prioritized list of those growth scenarios you prefer for your business.
- Examine the challenges the growth implies for your business and whether you are ready for them.
- Plan actions and initiatives that get the scenario moving forward.
The article, 7 Different Ways to Grow and Develop your Business, was written by David Madié, CEO of GrowthWheel International Inc. and re-published with permission from GrowthWheel®