Assess your options for business growth
Importance of business growth
Growth is crucial to the long-term survival of a business. It helps to acquire assets, attract new talent and fund investments. It also drives business performance and profit.
Why is growth in business important?
There are many reasons growth can be good for business. For example, it may allow you to:
- take advantage of new opportunities
- expand your products or services
- attract more customers
- increase sales
- employ more staff
It may also help you to respond to market demand, increase your market share and capitalise on your growing brand. It often spurs innovation, helping you to differentiate in the market and stave off competition.
Growth can also boost your business' credibility, allow you to broaden your supply base and increase stability and profits. However, to be successful and sustainable, growth must be strategic and must happen for the right reasons.
You should examine carefully if your business is ready to achieve and sustain growth.
Reasons for business growth
Most businesses grow to become bigger, perhaps through increased sales or market share, but size isn't the only driver. Some businesses pursue growth for:
- greater sustainability or resilience in the market
- lower costs - due to economies of scale
- greater market dominance
- greater buying and bargaining power
- ability to mitigate commercial risks - eg through diversification
- ability to reduce the threat of competition
- ability to survive market fluctuations and downturns
- ability to attract the best talent and staff
Whatever the motivation is, a full evaluation of the advantages and disadvantages of growing your business is always advisable.
Deciding how to grow
There is no one way to grow a business. You may want to expand your service area, form business partnerships, launch new products in existing markets, diversify your existing product line or explore other business growth strategies.
The prospect of growth is exciting, but it requires careful planning and preparation. Follow these tried and tested tips to help you prepare for business growth.
You can also get free advice and guidance from your local council to help you grow your business and scale up operations. To request support, complete a short enquiry form or call the Go Succeed helpline on Tel 0800 027 0639.