iCrowd Newswire
18 Dec 2020, 21:14 GMT+10
Although growth can be beneficial for a business, it is not always a defined concept. While expansion can lead to increased sales and a stronger market position, the question of whether or not growth is good for business resonates.
Data points used to highlight company growth include:
Conflicting metrics used to measure growth can muddy the waters. Companies may see improvements in some of these metrics but not in others. For example, revenue can increase without a growth in the number of customers when gains are the result of existing clients buying more products. It is also possible for one metric to increase while another falls, such as sales growth resulting from a reduction in the price of a product.
All of these factors make it difficult to define growth but companies looking to expanding should define their business goals from the outset. This will help them to establish important growth metrics. Learn more about a business growth accelerator and how they can HELP your business.
For some start-ups, this could translate into increasing their customer base, even if it means suffering losses in the early growing phase. Less ambitious businesses could benefit from slowly increasing sales and revenue to ensure an income stream to help cover costs.
The type of growth required by a company is dependent on the stage of its development. In other words, while start-ups need to cement their position in the market, more established companies may need to protect against future risk by adopting a slow liquidity building process.
Start-ups usually need to grow to a size large enough to generate sufficient revenue to cover costs and to make a profit. Mature companies may still want to increase profitability by increasing sales.
Companies wishing to achieve organic growth have to adopt systems known to generate growth. The growth drivers are:
While a company needs to expand, the business must keep track of its growth rate. If an owner knows that his customer base will increase by 10% within the next six months, they can begin to implement structural changes such as buying new equipment or hiring more employees.
There are said to be four stages of business growth - start-up, growth, maturity and, finally, renewal and/or decline stages. To succeed in a competitive market, it is always wise to have a realistic long-term growth plan for any size business. The six business growth strategies advocated, particularly for start-ups, are:
Tags:, Content Marketing, English
Get a daily dose of International Technology news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to International Technology.
More InformationPort of Spain [Trinidad and Tobago], July 5 (ANI): Prime Minister Narendra Modi paid an official visit to Trinidad and Tobago from...
Port of Spain [Trinidad and Tobago], July 5 (ANI): During his visit to Trinidad and Tobago Prime Minister Narendra Modi made a number...
Port of Spain [Trinidad and Tobago] July 5 (ANI): India and Trinidad and Tobago have signed six agreements during Prime Minister Narendra...
President Trump has ordered higher entrance fees for foreign visitors to U.S. national parks, sparking concerns from environmental...
Bhopal (Madhya Pradesh) [India], July 4 (ANI): Chief Minister Mohan Yadav on Friday transferred Laptop grants worth Rs 235.58 crore...
NANNING/GUANGZHOU, July 4 (Xinhua) -- Hidden for years in a flowerpot behind Zhan Pu's childhood home in the southern Chinese city...
Patna (Bihar) [India], July 5 (ANI): BJP leader Ravishankar Prasad on Saturday said he was 'saddened' over the murder of businessman...
Hyderabad (Telangana) [India], July 5 (ANI): Social media abuse of children must be treated without mercy for the culprits, said Telangana...
Patna (Bihar) [India], June 5 (ANI): Following the murder of prominent businessman Gopal Khemka, Bihar Director General of Police (DGP)...
(Photo credit: Isaiah J. Downing-Imagn Images) Colorado coach Deion Sanders, who has been suffering from an undisclosed medical condition,...
Washington [US], July 5 (ANI): Actress Julia Roberts and cinematographer Danny Moder marked 23 years of marriage with a private camping...
Moscow [Russia], July 5 (ANI): The Russian military has carried out a series of strikes on Ukrainian military-related targets in response...