In this day and age, the world is rapidly changing in the way we function, and this has greatly affected the world of business as well. This is why so many people are opting to take a brave leap into the world of entrepreneurship and venturing towards starting their own business. The growth of a business plays a significant part in its survival. In a world where technology has made it easier to start and grow a business with few resources, you must understand the relevance of business growth. We will briefly look at why it is essential, the various ways an organization can grow, and the benefits of growing a business.
A business should keep growing to ensure it survives in the long term. A sole proprietorship business is one where a business owner controls the everyday activity of the company. While this is fine in the short run, it can be catastrophic going forward. If the business owner passes on, it can spell the death of the venture. Customers and suppliers would have been loyal to the person and not necessarily the organization.
There is also the challenge of unfavorable economic situations impacting the organization. Adverse government policies, an unforeseen pandemic (COVID-19, anyone), or a hostile takeover from other competitors are only a few reasons a business should aim to grow. Just as growing physically, mentally, and financially is necessary for human survival today, so it is for any entrepreneur running a business.
There are different ways to grow a business. Some of the more obvious ways are to increase sales by either increasing the unit price of your goods or services.
Do it by increasing the number of people buying your product, cutting costs you incur on materials you purchase, cutting costs on business operations, and merging or taking over competitors. Most firms grow by focusing on one or all these methods. Many people don't know how to start their growth journey, and the advice that Gio Letellier gives to aspiring entrepreneurs is to talk to a business consultant. A consultant can help by going through your books, records, and industry trends and then suggesting strategies you can adopt that will be effective for your business.
The best way to know if your venture is growing is to measure it. Guessing or estimating may be okay while starting, but as it grows, a structured way of operation should be on the ground; measuring the signs of growth is crucial. You can measure growth by looking at your revenue on a monthly or yearly basis, your profit on a yearly or monthly basis, the number of customers you have, including the number of new customers introduced to the business.
There are multiple advantages of growing your business. While some are obvious, other benefits are not as clear, and these are some of them:
The business attracts more customers.
Talented employees will want to work for the firm.
It will be cheaper to buy products from manufacturers because of discounts.
The business can charge more per unit and reduce costs because of the economics of scale.
These are the 4 leading benefits of growing a business and reasons to do so if that is not in your plans.
It’s a given that when anyone goes down the path of starting their own business, that they really need to plan ahead before making any final decisions. Business growth is crucial for the success of any venture. It's a non-negotiable principle that every entrepreneur should seek to do. It’s challenging enough just to get a business started, but staying relevant as well as being able to stay at the top of your field is something that takes a lot of work. This is why it’s important for you to utilize the information provided here and make it a point to focus your energy on the future of your company, and what you need to do to really stay on top.