The features of business growth
Explore the elements of growth in business
When we think about the business, then our mind always looking for its expected growth. But in the reality, you will see that the business will need some important elements which steer it to get its destination. Even, it is true that business growth is somehow a swelling process that is visible in its exterior look. But maybe the word of development comes to your mind when you are thinking about growth. Indeed, growth and development are different in their meanings and purposes as well. Growth means an increase in physical size whereas development is a gradual transformation which is a continuous process. If you like to describe the different kinds of business growth strategy, then you will find the main two types of business growth strategy. One is organic and another is strategic. Both are different in their action and executions. Organic business growth is most popular and effective for any kind of business particularly startup or small new business as well. It focuses on products, services, and space for expansion. For any established business, strategic business growth is highly suitable. The reason is that it puts eyes on long-term business planning. So that the business can propel on the right pathway for further expansion. Growth is indeed a motivational process to invest, innovate and improve as well. Now, let us get into the main topic.
If the business has to run smoothly from the very beginning, then it should be innovative about its functions and executions. Moreover, you can think that innovation is the process that caters to the new improvement of the existing product or services. But you should never compare with the invention. Because the invention is a process for creating a new product. In this case, the business always needs the first final product from the inventive mechanism, and after that innovation process takes it to a new dimension. Indeed, every business starts firstly on the principles of scalability, big ideas, systems, sustainability, growth, vision, purpose, and autonomy. But the importance of innovation comes first and works on its growth mechanism. The reason is that the business growth which always instantly needs an immediate push up from the stable process like innovation. Indeed, the main purpose of innovation is to create a new value for an existing product. Therefore, innovation always strives for creating powerful value of service in such a way that business could achieve its growth well. It is observed that any kind of business always needs more innovation than invention. What happens is that innovation is more powerful than invention at the primordial stage of a business. It is found that it steers the business to reach the customers through a lot of innovation marks on its products and services as well. For better business growth, you will need different kinds of innovation like process innovation, product innovation, and business model innovation as well. All these innovation patterns have different functions and ability also. Overall, innovation is an important criterion for business because it is responsible for sustainably resolving collective problems. Another point to ponder is that the importance of innovation is required for business when it requires reaching out to business growth goals, effective response to the industry disruptors and quickly responding to the external challenges as well.
It is the most challenging part of business growth. The reason is that it is not easy to implement in quick succession. Moreover, if you think deeply, then you will find that a lot of elements are responsible for making it difficult to achieve as well. Generally, market penetration depends on price, distribution, and product. Precisely speaking, market penetration works exclusively on the price front which ultimately determines the market penetration success. Therefore, how the company develops the pricing policy for market penetration, then it will make the way for deeper penetration into the market. The different kinds of pricing strategies like competition-based pricing, cost-plus pricing, dynamic pricing, penetration pricing, and price skimming are available for the company to penetrate the market. The price skimming strategy of all kinds of pricing strategies is highly intimidating for any business. The reason is that the high introductory price never works well for most of the time for a product. It is observed that it may deliver a wrong sign to the consumers as well. Maybe the consumers think that the company is using ambush marketing for capturing the market share. The main purpose of market skimming price is to make the company for earning more money. Always the company should fix the price in such a way that price skimming should not give a negative impact on the company’s reputation.
You should not always think that competition is stressful for business growth. Practically, you are wrong in your conviction. You should keep in your mind that competition always nourishes the prime business and its rival simultaneously. Indeed, you will never see the development quickly. First, it starts to nourish internally in the business infrastructure and after that, it will show on the exterior form with its transformation as well. Maybe you think that the competition restricts business growth. But it is wrong. The reason is that without competition, not only a single business could survive in the economy. Moreover, you should keep in your mind that more competition will create more business growth in an economy. But the forms of business growth will be different in their way. There are indeed three types of competitors in the business world. They are direct, indirect and replacement competitors as well. The direct competitors are the competitors who directly compete with the products of the main rival with the same product category and price. It depends on the marketing strategy of both the prime product manufacturers and the competitors also. For any business, identifying the replacement competitors is very much difficult. The reason is that the replacement competitor who provides services besides the product selling to your area in a more precise manner. Therefore, you will never able to find it easily with their business plan as well. But you should keep in your mind that whatever may be the competitors, you will always learn something from them and also you will able to apply in your business for further business growth.
For business growth, you will need to take the risk of floating on the business circle also. It is observed that more business growth will increase more business risk. Indeed, it is true that it is a great opportunity for business to control the risks and makes the way for business growth. It is found that different kinds of business risks have different measures. Therefore, the business should comply with the right measure to tame these risks as well. The business risks like compliance risk, financial risk, reputation risk, and operational risk have the unique interpretation of these risks as well. When a business starts its journey, it always comes through a series of rules and regulations, then maintaining the rules and regulations in the right way is the prime concern for business growth. The reason is that the compliance risk always deters business growth if it could not maintain it in order. When a business takes a loan from the financial market and could not pay on time due to rising interest, low market demands and other factors, then the business could face financial risk. Practically, it is possible to control financial risk by taking measures for mitigating this risk. For any business, reputation is highly volatile and it is an intangible asset. Once it gets into a risk matter, then the business will face a huge threat for its existence in the business community as well. For earning a reputation, the business will need a long time journey and it has to maintain it throughout its lifespan. If somehow it gets damaged, the reputation will be in danger. Only the business could bring its reputation back through its sublime measures. The reason is that a reputation is very much delicate and have to handle with care also.
According to business ethics, business stability is one of the important elements of business growth. The reason is that it tastes the business in adverse conditions to withstand the negative impact on it. It is found that every business has to face the difficulty at the regular interval. Moreover, a business should indeed follow some measures to make it stable at the time of adversity. The measures like stay focused, keeping the details records, analyzing the competitor, understanding of risk, be creative, prepare to sacrifice and others. But one thing is that business should have to chalk out the anticipated plan for any kind of emergency.
You should always keep in your mind that demand always depends on need or want. Therefore, demand will always attract the need for a product and it will be possible only through the buyer’s requirement. Even, you will observe that sometimes demand suddenly arises due to some unexpected events like calamity, pandemic and other negative trends as well. Sometimes you will feel that demand not always follow the economic principles, rather it follows the basic principle of human need. Therefore, the business should develop a suitable approach to make it on the growth path. Generally, the demand relates to the product’s credibility and services as well. Indeed, the demand sometimes plays an independent role for the business growth as well. It is found that the first product’s credibility attracts the buyers’ attention and thereafter the services come second.
No business could indeed survive without capital. When you are asking about the survival of a business without capital, then you could find that a business could survive a maximum of 27 days without capital. It is unique in its term. But it is found that sometimes a business could survive more than 27 days without capital due to a robust contingency plan. Since survival does not always depend on the capital flow, rather it also depends on the management policy, skill workforce, product credibility, robust distribution system and others as well.
For business growth, market expansion is a vital proposition. Moreover, the business itself depends on it due to the greater penetration in the consumer base. It is found that market expansion is required when a business like to win over its competitors as well. But sometimes it is not easy for a business to expand its market within its territory. Because there are the different kinds of competitors exit in its surrounding as well. But one thing is sure that a business needs some support to expand its market. In this context, a business should concentrate on the smaller competitors through the acquisition process. In this way, the business could see growth in the long term. Another point you could ponder that the strategic expansion plan sometimes needs the proper investigation from all quarters of the business surroundings as well. If the reports give a positive vibe, then the market expansion of the business will get momentum.
A business plan is just like a pack of cards that demarcate the horizon of business expansion. But developing a solid business plan will require a thorough exploration of the business infrastructure to find the strong area and loopholes as well. If the business plan finds anomalies in the business infrastructure with a solution to it, then the business will go on the growth path. Otherwise, it will never shine. A business plan generally consists of different parameters like management, finance, marketing and sales. Moreover, for business growth, a business plan should synchronize with every element of the parameters.
Therefore, business growth depends on the different elements of the business infrastructures and its functions as well. Moreover, the true sign of business growth is only possible when all elements work altogether for future success.