Business growth

What is business growth? Strategies and examples

All small businesses start with the goal of growing. But what does growing a business mean and how do you achieve it?

Read our in-depth guide to business development to learn more about growth strategies, how to develop a business growth plan, and the different stages of growing a business.

What is growth in a business?

Growing a business can be achieved in many different ways – from expanding your team, increasing sales figures, launching new products or moving to new premises.

Organic growth it’s when your business grows without making drastic changes.

For example, the longer you stay in the same market, the more your reputation can begin to grow and generate more sales. Recruit new staff or receiving investments can also lead to organic growth.

Why is business growth important?

Growing companies are in a strong position to attract top talent, attract investors and innovate to take advantage of new opportunities.

And with a focus on small business growth, you’ll quickly identify what’s not working and how to improve your operations. Whether it’s improving customer retention or scaling your products, with the right strategy, you could increase your profits.

How to Develop Business Growth Strategies

If you are actively looking to grow your business, you will need to develop a business development strategy.

An example of a growth strategy in a business is when a series of deliberate actions are taken to change the way your business operates.

Here are some examples of the most common strategies:

  • diversification – the sale of new products or services in a different market can generate additional sources of income

  • product development – launching a new product or improving an existing one can help a business sell more to its existing audience

  • increase in market share – also known as market penetration, is when a company increases the promotion of its existing product or service in the same market

  • partnerships – teaming up with another company could help a company increase its resources and expand its target audience

  • new channels/tactics – also known as market development, is when companies use new marketing methods and expand into new markets to introduce their existing products to a new audience

Do you need a business growth plan?

A business growth and development is similar to a standard business plan.

The main difference is that it covers a shorter period, usually one to two years, rather than three to five years.

So how do you start business development planning? First, you’ll need to assess what stage your business is currently at (see below) and monitor performance. A good way to do this is to do a SWOT analysis, which is a deep dive into your strengths, weaknesses, opportunities, and threats.

Next, you’ll need to create a plan for growing your business and identify goals that will help you reach the next stage.

What to include in a growth plan

It’s important to break your growth plan into sections, with clear goals you want to achieve. Here are some of the key areas covered in most growth plans:

  • growth strategies – what growth strategies will you use to achieve your goals? Looking to partner with other companies or diversify your service?

  • operations – do you need to move to new business premises? Are there new suppliers you need to work with to achieve your growth goals?

  • people – does your business need more staff to grow quickly? Defining your company’s staff structure and ensuring the right people are in the right roles is key to future success. As your business grows, creating an org chart can help you define the hierarchy and structure of your business.

It is also useful to include an overview of your financial information, such as accounts, profit/loss forecasts and cash flow forecasts.