In this section
- Rapid growth can destabilise a business and so needs to be managed.
- Having a suitable plan for growth is vital.
- Ensure finance and operating systems are in place before growth.
- Think about vertical integration – selling to the public as a route for growth.
Business growth can be achieved in a number of ways and is usually quantified by an improvement in profit. It should be noted that rapid growth is not always good and can quickly destabilise a business from both an operational and cash perspective if not controlled and managed correctly.
Growth opportunities need to be found and created.
Networking will often help to uncover opportunity. This may be achieved in a number of different ways, whether this is by talking to people, working in industry and hearing of opportunity, building relationships through consistency of work or simply being in the right place at the right time.
Organic growth - Expansion of an operation using its own resources as opposed to borrowed money or via acquiring other operations.
Non Organic growth - Growing the business through borrowing or through acquiring/merging with other companies.
Organic growth on the whole tends be slower and safer as opposed to non-organic growth which tends to be faster and riskier. Therefore the appropriate strategy will depend both on the company and the person in control.