Table of contents:
- What is Business Growth? | Corporate Growth Definition
- Types of Business Growth
- Why Companies Need to Focus on Business Growth
- Growth Automation: Things to Consider
- Automation Consulting Services to Facilitate Business Growth
- How Automaly Can Help with Your Growth Automation Goals
There are over 30 million small businesses in the US alone, with 500,000 startups launched every month. Although personal business operations account for nearly 53% of all sales in the country, only 50% of them survive five years, with 33% reaching the decade mark.
As you can see, many businesses are straining to scale, let alone sustain their current expenses or employees. Hence, business growth and development remain a top challenge for most companies.
But how does a corporation grow? How do you achieve growth in business? And what is business growth and development in the first place?
This article gives an in-depth insight into business growth definition, tips, and how to leverage growth automation consulting services. Keep reading to learn more.
What is Business Growth? | Corporate Growth Definition
Business growth is when a company expands exponentially towards its success, goals, and vision. Typically, this includes increasing customer base, revenues, and produced products. Every stakeholder in an organisation is responsible for the growth of a business, from owners to employees. External factors also matter.
Types of Business Growth
So, how does a corporation grow? There are five types of business growth, including:
Organic Business Growth
Any business can achieve organic growth if it increases its product output to expand. It’s a go-to strategy for new and established companies that want to branch out to new markets and face an inevitable product shortage.
In the case of organic company growth, scaled production blends seamlessly with the prevailing market demand. Typically, it’s an organic process in a business that doesn’t involve high overhead costs.
2. Strategic Business Growth
As the name suggests, strategic company growth is about the long-term vision for the growth of a business. At this time, the firm has likely reached the peak of its organic growth and is now looking for other untapped potential markets to branch out.
Strong marketing and advertising are critical for strategic business growth. Businesses need the money generated from organic growth to steer this phase and achieve their strategic goals.
Acquisition or merger is the riskiest among all types of business growth but has the highest success potential if implemented well and at the right time. It’s an option for businesses that want to venture into or continue to dominate a competitive market.
4. Internal Business Growth
Internal business growth is the most viable expansion strategy for many small ventures because it only involves available resources. In this strategy, businesses must adapt to change and sometimes even overhaul their entire operations through workflow automation to explore more large-scale types of market growth.
5. Rapid Business Growth
Rapid company growth can be challenging because it happens quickly within a short span. At this phase, a business will need a more streamlined cash flow to handle increasing production and the demand for customer service.
Why Companies Need to Focus on Business Growth
It is a well-known fact that the whole idea of business means growth. A business can retain and attract top talents, acquire innovative assets, and even fund investments for survival only through scaling. That’s why every company is always looking into creating more business opportunities and realising its goals.
However, the principal reasons why companies focus on business growth include:
Business growth is critical if you want to stay relevant in competitive industries. A company can attain greater sustainability and resistance to market challenges with streamlined cash flow and automated operations. Moreover, active growth gives businesses an upper edge over competitors.
Lower Operational Costs
Companies that invest in business growth obtain additional resources to optimise their operations. As a result, they become more productive and spend less on routine tasks. It involves manufacturing costs, marketing, sales, and other domains.
Greater Market Influence
Businesses need to grow and expand their market reach for greater dominance, which has many benefits. For instance, controlling a diversified supply chain empowers a business to withstand market fluctuations and downturns. A business with high company growth rates can offer more services to mitigate commercial risks.