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What Does Business Growth’ Really Mean?

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Defining business growth is difficult as many experts disagree on a formal definition. The most commonly used definition of business growth is when the profit and market share the company achieves.

A different definition of business growth is a company’s growth that occurs through various methods. There are endless possibilities for businesses to grow from a marketing plan to changes to the business model.

One of the most important factors to consider when determining whether something happening in a company is considered business growth is whether that event can be quantified. If something isn’t assessed, it’s difficult, if not impossible, to know if it is expanding.

Growth in sales and the success of a business is the primary motivation for many who start a company. But, even though the vast majority of them do but not every business considers selling and business growth as their primary goal.

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Certain businesses wish to ensure that their employees and customers remain at the top of their list. For these businesses, their growth strategies could concentrate more on the overall customer experience and the employee experience.

To stimulate growth, plans, strategies, and objectives must be aligned and complementary to each other. In reality, a business growth strategy must be considered in all aspects, from the beginning of a business plan creation to the improvement of product lines.

Growth vs Growth-Driven Business.

Identifying the cause of business growth and assessing the effectiveness of growth strategies is not easy. Studying the differences between growth-driven and growing companies is beneficial for many professionals.

While a growth-driven business is mostly focused on speedy outcomes, a growth-driven company is focused on the long-term sustainable growth of the business. Five essential considerations to make when understanding the distinction between growth-driven and growth-driven companies are:

1. Marketing and Sales Relationship.

The relationships between the marketing and sales departments can be difficult and full of miscommunications. The incompatibility between these departments could cause major problems for growth throughout the business. Growth businesses try to correct the departments’ misconceptions about one another.

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The most frequent misconception that the marketing department personnel hold about sales departments is that sales reps don’t understand the effectiveness of marketing material. However, the majority of full-time sales professionals say that they are not aware of real-world sales tactics.

A good alignment between sales strategy and marketing strategy is vital to developing and maintaining growth strategies for businesses over the long term. Companies need to ensure that both departments have goals for growth that they are working towards in tandem.

2. Customer Journey.

Everyone knows that having an existing customer base is essential for long-term business performance and profit. There is a distinct distinction between a growing company and one driven by growth regarding customer base requirements.

A growing business is focused on acquiring new customers and expanding markets quickly. A growing business is focused on the long-term retention of its customer base.

Focus on the growth goals of a business driven by growth results in retaining customers new to the business in the long run. A growing company could have high volumes of new customers at first but not be able to keep these new customers over the long haul.

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Companies that are driven by growth are intentional in every stage of the customer journey, right from the initial awareness to the stage of brand ambassador. Growing companies understand that their business’s success largely depends on long-term customer retention.

3. Brand Development.

In small and large corporations, a key indicator of a growing business is the harmony between the brand’s image and the customer experience. A well-established brand and image should be evident in a company’s services capabilities.

Defining a brand’s identity requires a thorough understanding of the company’s business model as well as the growth goals of the business. A company’s distinctive brand needs to be considered in every aspect, from the customer service experience and social media profiles.

4. Market Focus.

Growth-driven and growing business are two different things concerning new customers and markets. At the same time, a growing company might appear unstoppable in its efforts to gain new customers. However, the goal and motives behind the effort are for revenue generation, not the customer experience.

A business that is driven by growth is passionate about customer service, both for new customers as well as long-term customers. Growing companies ensure that they are aware of the market before entering and even anticipate market shifts before they happen.

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A company growing a successful business often ensures that clients receive the best product and outstanding customer service.

5. Technological Investments.

A growing business has a great and long-term business plan for technological advances. As opposed to waiting for the onset of a crisis to bring adjustments, companies driven by growth are ready for any change that the future might bring.

A growing business might not be able to make this kind of proactive technological investment because of an insufficient capital base or the unbalanced pursuit of a growth target. For instance, the focus on a marketing or sales strategy of a small-sized business or a new venture may result in a lack of capital to meet the demands of the looming market crisis.

The Importance of Business Growth.

Each business must be aware of the importance of growth for the success of its business and its profitability. All professionals must be aware of many other reasons to grow for business.

The most well-known reason why growth is crucial is the boost in profit businesses experience because of it. The increased profitability gained from making more sales provides a business with more resources.

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Another major reason expansion is essential is the opportunity to hire more employees. The proper amount of employees in the workforce helps in everything from customer service capabilities to improvements in product lines.

Furthermore, employee retention rates are often higher during times of growth, particularly when the growth objectives and employee goals coincide. With more employees on the payroll, growth goals can be added, and new opportunities could be considered.

Growth allows a company to profit from new opportunities that might not be possible otherwise. For instance, small businesses can successfully enter an entirely new market by using the additional funds and resources acquired during their expansion.

The range of products or services that a company offers can expand in direct response to the expansion of the business. Not only can the expansion of a service or product line aid in increasing profits for businesses and increase profits, but they help businesses gain a competitive advantage.

If a business has gained an edge in its market, it will be more likely to secure a greater market share. With a higher market share percentage, the continued growth of the customer base is possible, even if it isn’t certain.

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The ability to maintain and gain your competitive edge is dependent on continuous development. Therefore, small and big corporations must be certain to constantly search for opportunities to grow.

Creating a solid brand and reputation for outstanding customer service will draw more customers in the future. In the future, the coherence between brand image and customer service experience can increase the odds of a company keeping new customers for the long haul.

Four Types of Business Growth.

Beyond defining a company as a growth-driven or expanding business, they also grow in four ways. The four primary kinds of growth that businesses could experience are organic, internal, strategic and finally, partnerships, acquisitions, or merger growth.

Understanding the four kinds of growth could aid in making business strategies more efficient and well-organized.

1. Organic.

Organic growth is usually thought of as the most efficient method of business expansion. It’s also widely regarded as the most efficient method.

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Organic growth can be described as the company’s substantial growth, from developing new products to a brand new store opening. As more products and services are provided, and sales rise, organic growth usually requires expanding the physical space available to customers.

Organic growth is an excellent strategy if you are a brand new company or small business that is entering the market for the first time without adequate stock. However, it is to be remembered this plan is not sustainable over the long run.’

2. Strategic.

Contrary to organic growth, Strategic growth is characterized by an emphasis on the long-term. Strategic growth is a fantastic option following the conclusion phase of the growth organically phase.

One reason it is essential to complete the organic growth phase before moving into the strategic growth stage is the number of resources required. The ideal situation is that during the stage of organic growth, you would produce a substantial amount of capital that allows the company to invest in long-term growth objectives.

Businesses planning their business should ensure that they keep in mind strategic growth. Strategic growth strategies can include releasing new products for a particular product line or updating marketing strategies targeting a particular customer base.

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3. Internal.

The principal goal for internal development is to use and maximize resource use. This is why internal growth differs from organic and strategic growth since it doesn’t focus on production.

Internal growth is frequently used in conjunction with an organic or strategic approach due to its capacity to maximize resource utilization without requiring an investment of a significant amount. Instead of investing in expanded production or business development, internal growth seeks to use resources more efficiently.

Internal growth could include a more efficient business plan or business models modified to optimize resource use. Although internal growth might initially be intimidating for team members, making the most efficient use of the resources at hand is beneficial.

Four Partnership, Acquisition, or Merger.

Many companies may choose an acquisition, merger, or partnership for a growth strategy. A partnership or merger is usually regarded as the riskiest growth strategy, but it is also the one with the greatest likelihood of reward.

This approach can allow easier market access while expanding the existing customer base. Furthermore, increased production capabilities could make the design and launch of new products easier.

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Another benefit to executing the acquisition or partnership and merger is the possibility of spurring businesses to innovate and improve the chances of business success by working together.

Four Main Strategies for Business Growth.

There are four main growth strategies that all businesses should think about implementing. These strategies cover the development of products and diversification, market development and market penetration.

Utilizing these strategies correctly will result in long-term growth and profitability for your business. The four strategies comprise the following types of strategies:

1. Product Development.

In the process of product development, New products are developed to meet the needs of a market already in place. The major benefit of this growth strategy for product development is that existing customers can be used instead of a requirement for establishing a new market.

A good example of product development could be an expanding product line to include games for cards.

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2. Market Development.

Contrary to product development, marketing development opens up a product or service in a new market. Market development may be based on geography or a new market.

A good example of market development might be a toy manufacturer setting up a new location for its business in a different nation.

3. Diversification.

Diversification happens when a new product is introduced into an entirely new market. The diversification strategy comes with risks and also the possibility of high rewards.

One example of diversification might be a toy manufacturer creating parts for machinery that they can sell directly to manufacturing customers.

4. Market Penetration.

The goal for market penetration would be to expand market share by utilizing the products or services already in existence. Methods for market penetration vary from price reductions to boosting marketing strategy investments.

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A prime instance of market penetration could be a toy manufacturer reducing the price of their most selling item.

How to Write a Business Growth Plan.

Growth plans for the business are short-term blueprints that companies develop to predict the business’s success in the future. A growth plan for a business should contain both business strategies and models.

The end of every quarter provides a fantastic opportunity for businesses to assess the progress made in achieving their growth objectives and what needs to be addressed. Growth plans are typically designed in the belief that they are to be made available to investors and focus on revenues.

Numerous experts have pointed out that writing a growth plan is similar to writing a business composition. The information in the growth plan must include:

  1. Opportunities for growth and expansion
  2. Goals for fiscal growth
  3. Marketing strategy specifics
  4. The outline of the fiscal strategy
  5. Employee scheduling requirements

Conclusion

  • The growth of the business is vital to bottom-line profits and for the success of your business.
  • All businesses should know about the significant differences between growth-driven and business growth companies.
  • Four types of growth for businesses are organic, strategic internal, mergers, acquisitions or partnerships.
  • Four strategies are the development of products and market development, diversification, and market penetration.

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Apple Plans To Double Its Digital Advertising Business Workforce.

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The move raises industry concerns following the launch of privacy guidelines which make it impossible to create ads that are tailored to iPhone users

Apple plans to more than double its workforce within its rapidly growing digital advertising business in less than 18 months after it enacted radical privacy rules that crippled its larger competitors in the lucrative business.

The iPhone maker has about 250 employees per LinkedIn advertising platforms team. On the Apple careers website, it’s looking to fill additional 216 positions, which is quadruple the 56 positions that it had hired in the latter half of 2020. Apple denied the claims. However, it declined to provide any further details.

The digital advertising industry has been apprehensive over Apple’s plans for advertising since the company introduced privacy regulations this year, which have shaken up the market for digital ads worth $400 billion and made it more challenging to customize ads for Apple’s one billion+ iusers Phone .

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Since the new policy was implemented, Facebook parent Meta, Snap and Twitter have lost billions of dollars in revenue and a significant amount in market valuations, even though other contributory factors exist.

“It was almost like a global panic,” Jade Arenstein, global service director at Incubate, a South African-based marketing performance firm, was quoted as saying about the impact of Apple’s recent changes.

The once-flourishing advertising business is “incredibly fast-growing”, according to an ad for jobs. The business has grown from a mere few hundred million dollars in revenue in the last quarter of 2010 to an estimated $5bn in the current year, according to research firm Evercore ISI, which expects Apple to be able to grow its $30 billion advertising revenue within four years.

Compared with Google and Facebook and their 2021 revenue from advertising was $115bn and $209bn. For instance, Apple’s business in advertising is small. The digital advertising industry is worried that it will increase due to establishing rules that critics and rivals believe provide it with an advantage.

“Building new ad systems to effectively compete with incumbents with tens of thousands of employees and 10 to 20 years of maturity would normally be an impossible task,” said Alex Austin, chief executive of the ad tech group Branch. “Unless,” he added, “you were somehow able to disadvantage those competitors on your platform.”

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Apple has been for a long time the most prominent Big Tech outlier for not taking part in “surveillance capitalism” — the practice of offering customers free services but making money on their data through targeting ads on them.

“We could make a tonne of money if we monetized our customers — if our customers were our product,” chief executive Tim Cook said in 2018. “We’ve elected not to do that.”

However, with Apple having twice the number of developers who can purchase ads on the App Store over the last two years and preparing plans to expand, the critics are seeing Cook taking a significant turn.

David Steinberg, chief executive of Zeta Global, a marketing technology firm, said Apple had been “Machiavellian” and “brilliant” in implementing privacy regulations that required rivals to revamp their advertising infrastructure while creating an opening to fill the gap.

“They could build out (their advertising business) dramatically (and) the ‘air cover’ is they are protecting the consumer’s privacy,” said the researcher. Added.

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Apple did not comment on its long-term plans. The job advertisements tell prospective employees that the company’s goals are nothing more than “redefining advertising” for a “privacy-centric” world.

The 216 positions Apple wants to fill are managers and designers of products, in addition to data engineers and sales experts.

An advertisement for an engineer, released on August 24, is a reference to “Apple’s most confidential and strategic plans” and explains how the company plans to “build the most secure technology-driven, technologically sophisticated . . . Supply (Marketplace) Platform and Demand Side Platform”.

These are the core aspects of an ad tech company that allows advertisers to purchase and sell ads across multiple exchanges, possibly advertising in mobile applications downloaded through the App Store. Apple may be able to consider apps for mobile “first-party” data because all activities take place on the iPhone, which is in line with its privacy regulations which ban third-party apps’ contentful monitoring of users.

The positions are predominantly located in the US. However, there are at least 27 roles in Europe and 12 in China and 12 in India and four located in Japan, as well as two positions in Singapore.

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“That’s a giant team — that’s bigger than most small companies,” Arenstein said. Arenstein. “Wherever there is smoke, there is fire, and that’s some smoke.”

Apple has never been averse to advertising by itself. Its CEO Steve Jobs even tried to create an in-app advertising business in 2010, so that iPhone apps would remain completely free. Cook is against how personal information is purchased and traded by opaque third parties without iPhone users’ consent.

Yet, Apple set the rules regarding how advertisements should function and later expanding into this very subject is seen by many as unsatisfactory.

At the moment, it’s more secure — in terms of the economy of surveillance using an Apple phone over one that is a Google phone, as Google has designed its products to support surveillance, while Apple isn’t, in its essence, an advertising firm,” said Claire Atkin co-founder at Check My Ads, a surveillance agency. “But if Apple suddenly delves into that realm, they won’t have a that competitive advantage.”

Apple might be putting its image at risk if regulators and consumers oppose its privacy claims which have been a significant part of the recent iPhone campaigns. If the argument prevails, Apple would have an unobstructed runway.

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Margo Kahnrose, Chief Marketing Officer at Skai, an omnichannel advertising platform, has said that she believes it “makes absolute logical sense” for Apple to develop its advertising network, following the lead of Google, Facebook and Amazon.

Adtech’s power has, she explained, for a long time been flowing from the decentralized “open web” to “walled gardens” run by one company that can control how ads are purchased and served, as well as how they are measured and tracked.

“The world has been unnerved by Apple’s ambitions for a long time,” she said. “There are a few companies that have vast quantities of power, and Apple is the one that is sleeping.

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Six Ways To Maintain A Growth Mindset While Running A Business.

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To be successful as an entrepreneur, starting your business with the appropriate mentality is essential. A growth-oriented mindset implies always striving to improve the product or service you offer or the ability to communicate with people in your industry. Many companies start as small, but they expand in time to become massive businesses that impact people’s lives in the millions. However, this kind of growth isn’t a quick process – it requires a lot of time and effort, and it’s all with constant improvement.

Six Ways to Maintain a Growth Mindset While Running a Business.

1.) Change your outlook

If you’re in the business of managing, it’s easy to become caught up in the day-to-day and forget about the bigger perspective. However, if you’d like your business to flourish, keeping an attitude of growth is essential. Being able to open your mind to be fully engaged in the things you believe are the best for you is crucial.

2) Are you in your comfort zone?

One of the difficulties of managing a business is it’s easy to get into a routine. Once you’ve discovered a method that works, it might be tempting to stick to it. However, staying with the same formula with different outcomes isn’t intelligent. If you’re looking for your business to expand, make sure you alter things with slight adjustments to ensure that your business feels fresh and exciting.

3.) Be prepared to take the risk

Nobody said creating and running a company was easy, regardless of whether you’re putting together an exercise calendar or an entirely new line of clothing. It’s one of the most challenging tasks you’ll ever have to do. If you want to succeed, you must have a mindset of improvement. Create a staff around you. Find people who can assist your company in its growth. It’s not necessary to shoulder all the responsibility for your company. After all. Make sure you take sensible risks. There is undoubtedly a danger involved in taking risks, but when you take calculated risks, you reap a calculated reward. The most successful entrepreneurs realize that sometimes it takes a long time to bring an idea to fruition. Therefore, they remain in the game and push forward.

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4.) Connect with others who are adamant about your abilities

One of the most effective methods to keep a positive mental attitude is to surround yourself with people who are confident in your abilities. If you’re always around optimistic people who believe in your ambitions, It’s easier to stay inspired and push ahead.

5) Discuss your concerns

If you’re in charge of an enterprise, it’s simple to become distracted by the day-to-day and forget about the bigger overall picture. It’s possible to worry about how to make ends meet and meet deadlines or having to deal with demanding customers. Discussing these concerns with the rest of your entrepreneurial friends and colleagues is essential to ensure that things stay on the right track.

6) Be focused on progress, not perfect

When you’re an entrepreneur is effortless to be caught in the pursuit of perfection. You’d like your service or product to look flawless before launching it, but the reality is that it’s impossible to be perfect. It is essential to keep in mind that the pace of progress will always be better than perfect. Start by taking it one day at a. The advantage of keeping a single day in mind at a time is that even should things not go as scheduled. It doesn’t matter since tomorrow is another day to start from scratch. Create workable goals. After creating some feasible goals, please keep track of them and assess how they performed based on outcomes rather than the amount of time and effort poured into them.

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What Is Good Debt and Bad Debt for a Small Business?

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There are two kinds of loans for small companies. Find out which one is best and which one is not.

For many people, the term “debt” has negative connotations. However, when setting up a small-sized company, it is not necessary to stay clear of debt completely. There’s “good debt” that is essential for growth when you start an enterprise, but there’s “bad” debt that could cause long-term harm to your financial situation.

The difference between good and bad debt and how to manage your company’s finances to keep them in check.

Good debt in contrast to. Credit card debt What’s the distinction?

Lyle Solomon, principal attorney for Oak View Law Group, states, “good debt returns money to your pocket, but bad debt takes money from your pocket.”

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“Debt that increases your future net worth is considered good debt, and debt that reduces your future net value is referred to as bad debt,” Solomon added.

Good debt

Kenneth Hearn, fund manager and director of research for Swiss One Capital AG, describes good small-sized business loans as the money borrowed to finance things that contribute to the development and growth of their company.

“This could be for anything from paying for improvements to meet new safety regulations or expanding your human resources team,” the man explained. “A general rule of ‘good debt’ is debt that is low-interest, or will increase the overall net worth of your business.”

Paying off your debts shows you have a good payment history, which your credit rating can show. The more debt types you can manage responsibly and pay off, the more favourable. This means that more lenders will permit you to get in the future.

Bad debt

When a lender takes out money to purchase an item that doesn’t increase in value or produce revenue, it is often regarded as bad credit. Any loan or borrowed funds that could lower the value of your company’s net future must be avoided. The signs of bad debt are the high-interest cost, fees, and strict loan repayment conditions.

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Examples of lousy credit include cash advances and payday loans, usually called “predatory loans.”

“These loans . Target people with bad credit or low income with few options to consider,” Solomon added. Solomon. “[They often] come with exorbitant interest rates and unethical terms.”

Things to think about when making a “good debt an investment

If you are considering getting a loan, entrepreneurs in small businesses should consider the type of debt they’ll be taking on. If the lender takes out a loan for an asset that isn’t going to depreciate, for example, real estate, education, or their own company, on favourable terms, it’s considered to be a good debt.

“Healthy debt entails borrowing money for investing in items that do not depreciate over time,” Solomon explained. Solomon. “Keep the above in mind when you borrow money to run your business. Use the funds to minimize the chance of a catastrophe or loss.”

One approach small business owners may employ when borrowing money is to commit to the lowest rate of interest possible.

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“Your interest payments are tax-deductible,” Hearn said. Hearn. “These tax deductions could help you get over the red line and into the realm of profitability. If you manage your cards correctly, interest rates can benefit you rather than against you.”

Strategies to get out of credit

If a small-sized business owner is trying to escape the burden of bad debt, There are options to overcome the situation. First, examine the company’s budget and financial statements.

“Financial management software has come a long way over the past couple of decades, and having proper procedures for data entry and its use from the start of your business is crucial to managing good or bad debt,” Hearn said. Hearn.

For business owners who are in “bad debt,” Solomon advised consolidating debts to one loan.

“Debt consolidation is an intelligent debt management approach to ensure you’re paying the lowest rates and on the most optimal or flexible terms available,” said the expert to CO–. “Such a move would benefit your business, as you can avoid worries regarding payments.”

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Companies must ensure they have the funds to repay this consolidating loan, or it could negatively affect their business credit and financial situation. However, if used properly in the right way, consolidating or restructuring multiple debts is an innovative method of managing the finances of small businesses.

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