What Is Growth in a Business?
Evaluating what is growth in a business, is done in a myriad of
ways. I will outline some key indicators of growth in a business, what
to do when those indicators arise, and how to be prepared for that
growth.
The most common indicator of growth in a business is an increase in cash flow. This increase in cash flow is caused in various ways.
For example, a product may go viral or catch on in the marketplace or the value of what your business does/promotes has increased dramatically. Although these examples are very general, it illustrates a common indicator of growth in a business.
Many businesses utilize an increase in cash flow the wrong way. Whenever a business has an increase in cash flow, they should look to the business first to determine what the additional capital should be spent on.
You may want to upgrade computer software, buy new stationary or establish an emergency fund for the business if problems arise. These examples may allow an easier transition when an increase in cash flow happens, most importantly, helping the business delve into other stages of growth.
Many businesses go through periods where everything is clicking, there are no stalls in the day-to-day, and things couldn't seem greater. This is identified by my favorite indicator of growth, momentum.
Whether you are a small start-up or a multi billion dollar corporation, momentum is a key component in helping your business grow. Utilizing this momentum is beneficial in helping a business get to the next plateau (growth) and it is also a prime indicator on the timing of certain decisions, product launches, etc.
Momentum and Cash Flow are specialized areas of growth in a business, but the most important factor is innovation. This can come by way of new or better systems, products, or services and can also come by selling new or better systems, products, or services to a different market or niche.
Let's take a moment to put this example in perspective:
Business A sells barbeque/oven mitts. Business A is in a highly competitive market. Business A has been the leader in this market and sells to a general demographic opposed to a specific niche.
Business A is acquired by a new company, Business B. Business B sells silicone oven mitts at ¼ of the cost and will personalize them with your favorite team, word, or simple picture.
The above example illustrates the ability innovation has on growth in a business. Business A kept the same model and did not care about innovation. Business B figured out a way, through innovation, to grow their business exponentially.
They market to a specific niche of people, they have a lower sale price for a higher quality product, and it's customizable. Innovation led to the momentum and rise in cash flow, all fantastic illustrations of what growth in a business is.
Utilizing what I've outlined above, you too can help redefine what is growth in a business.
The most common indicator of growth in a business is an increase in cash flow. This increase in cash flow is caused in various ways.
For example, a product may go viral or catch on in the marketplace or the value of what your business does/promotes has increased dramatically. Although these examples are very general, it illustrates a common indicator of growth in a business.
Many businesses utilize an increase in cash flow the wrong way. Whenever a business has an increase in cash flow, they should look to the business first to determine what the additional capital should be spent on.
You may want to upgrade computer software, buy new stationary or establish an emergency fund for the business if problems arise. These examples may allow an easier transition when an increase in cash flow happens, most importantly, helping the business delve into other stages of growth.
Many businesses go through periods where everything is clicking, there are no stalls in the day-to-day, and things couldn't seem greater. This is identified by my favorite indicator of growth, momentum.
Whether you are a small start-up or a multi billion dollar corporation, momentum is a key component in helping your business grow. Utilizing this momentum is beneficial in helping a business get to the next plateau (growth) and it is also a prime indicator on the timing of certain decisions, product launches, etc.
Momentum and Cash Flow are specialized areas of growth in a business, but the most important factor is innovation. This can come by way of new or better systems, products, or services and can also come by selling new or better systems, products, or services to a different market or niche.
Let's take a moment to put this example in perspective:
Business A sells barbeque/oven mitts. Business A is in a highly competitive market. Business A has been the leader in this market and sells to a general demographic opposed to a specific niche.
Business A is acquired by a new company, Business B. Business B sells silicone oven mitts at ¼ of the cost and will personalize them with your favorite team, word, or simple picture.
The above example illustrates the ability innovation has on growth in a business. Business A kept the same model and did not care about innovation. Business B figured out a way, through innovation, to grow their business exponentially.
They market to a specific niche of people, they have a lower sale price for a higher quality product, and it's customizable. Innovation led to the momentum and rise in cash flow, all fantastic illustrations of what growth in a business is.
Utilizing what I've outlined above, you too can help redefine what is growth in a business.
Marcus Offutt is an expert and highly trained at determining, what is growth in a business.
He is also Director of Business Development at Business Growth and
Development Services. For more information about what is growth in a
business, go to http://www.BusinessGrowthandDevelopmentServices.com.
This article may be reprinted if sent in its entirety and with the author and contact information attached.
This article may be reprinted if sent in its entirety and with the author and contact information attached.
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