Business growth: 10 strategies to start today!

Every business wants to grow. Or at least stay healthy. However, sometimes it isn’t easy to figure out how to achieve business growth. We are going to help you. In this article, you will discover different stages of business growth and get 10 strategies for business growth.

Business growth definition

Business growth is the increase in an organisation’s size, capacity, profit or market share in a given period.

How do you measure business growth?

You can measure business growth in different ways. For example:

• The number of employees or locations
• The number of customers
• The revenue or profit
• Return on investment
• Market share
• The expansion of products, services or locations

The benefits of business growth

In the introduction, we already told you, as a company, you want to stay healthy to survive. Many more reasons exist why you want to grow as a business. You can:

• Get more certainty for the future;
• Provide customers with better service and quality;
• Get more return on investments;
• Get a more robust market position;
• Invest in branding;
• Invest in innovation;
• Increase the resale value of your business.

The business growth risks

Business growth offers your business attractive benefits. But it also brings risks. Below, we discuss some business growth risks.

1. Overload

If your company grows too fast, it can overwhelm everyone in your business. The result is staff shortages, longer (delivery) waiting times and poorer customer service.

2. Financial setbacks

As you grow, you want to invest in different components. Are you not managing this properly and spending more than coming in? You could be in financial trouble.

3. Change of corporate culture

A growing company also often means more staff and shifts of teams. Changes can lead to a different culture within the company.

4. Operational challenges

Keeping up with growth requires new systems and processes. Managing this transition can be challenging.

5. Loss of focus

Because you have to focus on operational challenges and strategies, the company’s original mission, vision, and values may be diluted.

6. Greater risks

Growth also means more competition, obligations and a changing market. Growth brings risks.

How much should a company grow per year?

No exact rule exists for how much a company should grow annually because growth depends highly on the company, market, targets, competition and circumstances. A company may aim to grow 1% or 5% a year. Some startups even want to achieve 20% annual growth.

The important thing is to set achievable and realistic goals for you that contribute to the annual growth of your business. For example, a 20% growth during an economic crisis is unrealistic. But a 1% growth in a growing market may not be ambitious enough. So always look at the current circumstances and make adjustments when necessary.

What is the average growth rate of a company?

The average growth rate of a company is also challenging to say. However, an indication can be given.

Startups and early-stage companies can achieve high growth rates because they start small and quickly capture market share. You can assume a growth rate of 20% or more. Companies around longer often have a lower growth rate: 5% or more, depending on circumstances.

Which industry is growing the fastest?

According to three Dutch banks, 2023 will be challenging for businesses. Nevertheless, several industries are likely to grow. These are:

• The transport sector
• Technology, media, entertainment and telecommunications companies
• Professional services
• IT and telecoms
• Cybersecurity, big data, software and digital infrastructure
• Catering industry

5 business growth models

Several models exist you can use to grow your business. We won’t go into depth in this article, but below are 5 models you can research further:

1. Business Model Canvas
2. Ansoff Matrix
3. Treacy and Wiersema model
4. Blue Ocean Strategy
5. Porter’s generic competitive strategy

The 5 stages of business growth

Besides the above 5 models you can use for business growth, there is a model you can use to determine the growth stages of your business. That is Greiner’s growth model. Greiner created 5 stages of business growth:

1. Pioneering phase – Growth through creativity

The company is young and small. The organisation is flat, and employees are committed. The focus is on product development and market positioning.

2. Management phase – Growth through leadership

The company is growing; there is a need for structure and control. A middle management is hired who focuses on planning and coordination.

3. Decentralisation phase – Growth by delegation

The company continues to grow. Middle management gets more responsibility than the top management used to do.

4. Standardisation phase – Growth through coordination

Systems, procedures and communication channels are needed. Managers are appointed to manage different sites or teams. Managers report to middle management. There will also be more unity for products and services.

5. Collaboration phase – Growth through collaboration

Different departments start working together. Employees have a lot of contact with each other to innovate.

10 business growth strategies

Now you know more about business growth, you want to know how to grow your business. Several strategies exist for business growth. Below are 10 helpful strategies to help you take your business to the next level.

1. Define your strategy

First, look at where you currently stand and what strategy you have come up with. Has this strategy worked, or do you need to fine-tune it? Think about what key actions are going to help you grow your business.

Example

Suppose you want to increase the growth of product X. That’s your core action. But how will you approach that? For example, do you want to advertise via Google Ads? Make your goal SMART.

Example: ‘I want to generate x% more sales through Google Ads within x months by hiring a SEA specialist to manage the ads daily.’

2. Create a roadmap

A roadmap maps out the key goals and milestones of a project, product or company. A roadmap gives you and your employees insight into what is done within the company to achieve growth. You can compare a roadmap to a time-bound to-do list that you can tick off to achieve goals.

3. Develop knowledge

As a business owner, many skills are required of you. It is not wrong that you do not have the same knowledge about everything. To brush up your knowledge and keep up-to-date on the latest developments, it is wise to follow courses, read books, watch presentations and attend training programmes. Knowledge will give you more insights into how best to manage people.

Don’t hesitate to outsource work too. You used to be responsible for marketing but have critical management matters to take care of. By giving a professional the responsibility, you will have time for the things that are more important to you and encourage the growth of your business.

4. Focus on what works

Focus is important. You can keep all the balls in the air, but then you will divide your time over too many things. Therefore, make an overview of all the activities you are doing and make choices. By focusing on the core actions that are already working, you will drive growth easier, and the quality of your business will increase.

5. Work for your business

Many entrepreneurs (of small businesses) work in the business. Still, it is essential to work for the company. Set aside a few weekly hours to improve productivity, market position, planning and finances. The following questions can help you work for your business:

• Are we being effective?
• Are we focusing on the right customer?
• Where do I see the company in 2 years?

6. Engage your employees

Did you know motivated employees help grow your business? After all, they are professionals in a particular field and stand closer to the customer. Without employees, your business is also at a standstill. Involve your employees in decision-making, hold regular brainstorming sessions, and ensure a pleasant and attractive company culture.

7. Collaborate with others

Collaboration is key. Not only internally, but also externally. After all, together, we know more. Let different departments work together to create a total product or comprehensive service. Or look externally at possible collaborations. A good example is clothing brands that partner with a popular film or series.

8. Keep a grip on finances

As an entrepreneur, you have many opportunities in mind to grow. The important thing is not to lose sight of finances. Ensure you always know how much you can spend so you don’t spend more than comes in. In addition, look for a form of financing that best suits your ambitions for your business.

9. Stand out from the competition

Suppose you buy a new coat. Moments later, you see 10 others with the same jacket. No one wants to be the same. Not you and not your customers. Therefore, differentiate yourself from the competition. What makes your product or service better than the rest? What can you use to be different and stand out? For instance, you could use a popping colour of product packaging or another way of communicating with customers.

10. Invest in innovation

Finally, you can only grow if you invest in innovation. The world is constantly changing. If you don’t change with it, you stand still and don’t grow. For example, if you have a physical shop, the next step is to create an online shop with Website Builder’s online shop.

Also, ensure your employees stay updated with the latest developments by enabling training, for example.

A recap

Growing your business is essential to stay healthy. However, thinking about steps to achieve business growth cannot be easy. Hopefully, the information and 10 business growth strategies from this article have given you new ideas and opportunities to grow your business. Good luck!