Organic business growth is the holy grail of sustainable success. Every entrepreneur dreams of organic business growth, but few actually achieve it.
Running a business can be challenging, especially when you’re dealing with complex issues ranging from micro-operations to macro-management. While Texas offers a great business environment with favorable tax structures and incentives, you may want to understand things first before hitting the treadmill.
So, if you want to quit your 9-5 job to start your own business, or if you already run a small business, this article will help you. Let’s explore different lines of business activity to teach you about the art of organic growth in business. But first,
What is organic growth in business?
Organic business growth refers to the process of increasing a company’s revenue and market share through internal operations, without relying on external factors such as mergers and acquisitions. This type of growth is achieved by expanding the company’s customer base, increasing sales, and improving profitability through operational efficiency and innovation.
To achieve organic growth, a business can expand its existing product or service offerings, develop new products or services, enter new markets, or improve customer engagement and loyalty. These organic business growth strategies often require investments in research and development, marketing and advertising, and hiring new talent.
Organic growth is generally considered a more sustainable and less risky approach to business growth than relying on mergers and acquisitions. This is because organic growth allows a company to maintain its independence and control over its operations while building a strong foundation for future growth.
Additionally, organic business growth typically leads to higher profitability and return on investment in the long run.
What are the challenges of organic business growth?
Before we get into the elements of organic growth in business, we’d like to discuss some of the challenges most entrepreneurs face. It is important that you understand the problems of organic business growth before looking at their solutions.
You can run your company smoothly, but as soon as you take the step towards organic business growth, you run into financial problems. This is often an indicator of poor financial management, particularly a blatant disregard for due diligence, which is vital to a company’s financial structure.
Similarly, retaining the desired talent also becomes a hurdle for many small business owners because they are unable to offer the incentives that employees demand after giving their blood and sweat to the company. This causes the company to lose the fuel that would otherwise power its engine as it heads for growth.
Furthermore, since not all entrepreneurs are educated in business, the lack of relevant knowledge, particularly in relation to business expansion, becomes an obstacle.
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How can a business expand through organic growth?
There are many other challenges that entrepreneurs typically face when trying to grow their business organically. You can look them up for further learning. The next part of this article will now discuss the different ways to pursue organic business growth.
1. Evaluate your position
You can’t really make a difference until you know where you stand. The same principle applies to business. If you want to direct your business to growth, you need to assess its current position. This includes all aspects from finance to operations.
So, assess how the company has been doing lately and what problems you have faced. Likewise, you should evaluate how the company has been performing. This should give you a good idea of your current position and help you identify weaknesses in your business.
2. Facilitate finances
After assessing your business, you can proceed with corrective actions. The first one obviously applies finances. You can’t do well unless your company’s finances are in order. Good financial management is an important element of business success, so go into it with utmost care and seriousness.
You need to assess whether you need to spend more and in which departments, or whether circumstances require your business to operate with savings. This depends on the factors you mentioned in the previous step, so this should be your call after careful evaluation. There is no hard and fast rule here.
3. Facilitate operations
Once you have your finances in order, you should begin to examine your company’s operations. At this stage, you need to scale your business correctly.
You need to see if you have the necessary manpower so that your business can reach the heights you want. You also need to see if the business’s ability to grow is being hindered. This is essential for streamlining operations.
Once you’ve done this, you’ll be in a better position to make the necessary changes. If important departments in the company are understaffed and would do better with the right talent, you need to hire more people. If the lack of professionalism is hurting business performance, you need to establish a new policy.
4. Understand your competition
Many believe they can make it big by focusing on their products and customers. While this formula works in select territories, it unfortunately does not work in established markets. You can’t do well unless you do better than those you compete with. Therefore, understanding your competition is an important part of the process.
Just as you would evaluate your own business, you should evaluate your competitors’ businesses. You need to see how well they’ve done recently and what mistakes they’ve made over the past few months or years.
For publicly listed companies, financial statements can be a good place to start. This should help you identify your competitors’ strengths and weaknesses and allow you to outperform them.
5. Improve your products or services
Once you understand how your competitors are doing, you can then continue to work on improving your products or services.
Remember, you need to approach this step with an informed mind. So be aware of your competitors’ hits and misses while you develop a plan to improve your products or services.
See if your product’s feature set or quality needs improvement, and allocate the necessary resources to the task. You should do this under your supervision to make sure everything is correct. Similarly, train your employees to ensure good service delivery. There are different approaches to this and you can look them up in detail.
6. Invest in marketing
You can’t really drive your business towards growth if you’re not serious about it marketing. Many businesses assign marketing responsibilities to existing employees and hope it all works out. However, it doesn’t work that way.
You need to have dedicated and qualified resources to approach marketing correctly. Marketing is an umbrella term for the various processes that lie beneath, so you first need to assess which approach you’re aiming for.
Once you’ve narrowed it down, you need to aggressively pursue your strategy with the right resources. Someone qualified in SEO is not automatically qualified to be a social media growth manager. Similarly, different marketing lines should be handled properly. As a business owner, you need to invest properly in marketing to reap the desired benefits.
In conclusion, organic growth in business is a vital strategy for sustainable growth and long-term success. Each of the above steps should enable you to take advantage of organic business growth processes.
Focusing on innovation, operational efficiency, enhance service delivery and customer satisfaction by increasing your company’s digital footprint, expanding your target market, developing your company’s employees, and customer engagement, businesses can achieve organic growth and reap its many benefits.
So, explore these ultimate goals through the points discussed above as you guide your company toward organic business growth.
I am Adeyemi Adetilewa, a media consultant, entrepreneur, husband and father. Founder and Editor-in-Chief of Ideas Plus Business Magazine, an online business resource for entrepreneurs. I help brands share unique and compelling stories using PR, advertising and online marketing. My work has been featured in the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and more.