What is growth in business? Every business owner dreams of success through growth, but business owners need insight into what is growth in comprehensive yet understandable terms. Growth can be described in one of two ways. The first is organic growth-making changes within the company, such as creating new products or making a certain process more efficient. External growth is more assertive and includes companies that absorb or merge with others. Growing a business doesn't just happen-it takes planning and control to ensure that goals are set and met without straining personnel and resources.
Organic Growth
When a business experiences organic growth, or internal growth, it focuses on measures within the business that can be improved and perfected. From expanding the product base to being more efficient in customer service, organic growth is all about getting a larger piece of the market. New and improved products will draw in more customers and expand your piece of the market pie. A greater market share means more profitability and, to remain successful, a company must create long-term plans to hang on to and increase that share.
New products and services must be introduced to consumers regularly to maintain constant growth. While it may seem like profitability suffers at first as resources are put into development, internal growth following a thoughtful plan lays a solid foundation for company longevity.
External Growth
A business can grow outside of itself through takeovers, partnerships or mergers. When an existing business entity chooses expansion and absorbs another separate entity, this is considered external growth. Advantages of external growth include the reduction of strains on current resources and the expansion of the ability to enter new markets. Options for external growth should be examined and reviewed carefully to ensure that realistic goals have been set and progress is being made on schedule.
External growth capitalizes on shared knowledge and expertise and allows for diversification in the market. There are also disadvantages of external growth, including growing too fast, losing existing customers, lack of control during expansion and numerous challenges in communication and cohesion.
 | Successful small business expansion depends on more than just the numbers. As the owner, you need to be willing to take on the challenge, shift your responsibilities and have a strong, strategic plan in place. |
 | Do you own a small business? If so, you have a choice between a small business server or staying with a shared server. |
The importance of business growth strategies cannot be underestimated. Good entrepreneurs know where they want to take their companies in the future. |
Growing a business from its simple, humble, home-based roots can be tricky. Things can start to get awfully complex within a very short time. You'll find yourself dealing with the issues of licenses, employees, workers comp, lines of credit, outsourcing, and other "real" business issues. |
If you're an entrepreneur, then you know that it takes more than just a fictitious business name and an open door to be successful. Business guru and author of "Seven Figures in Seven Years," Michael Masterson, offers sound advice to blooming business owners in an online publication "Early to Rise." |
