Business Innovation & Growth Acceleration
Business Innovation & Growth Acceleration          

Deciding How To Grow Your Business

There are two key strategies for growing your business, either organically or through acquisitions and mergers. There is no right or wrong answer, each has its pros and cons. However, it’s important from the outset that you’re clear about which growth strategy you wish to pursue as it will affect the way you structure your company and your operations. 

 

Here we shed some light on each strategy to help you decide how to best grow your business.

 

Organic Growth 

 

Organic growth means expanding your business by continuing to do what you’re doing, or moving into new markets. The main objective is to increase sales, and typically, it’s steady, low-risk and profitable. Everything moves slowly and in sync; your revenue grows as fast as you can hire skilled workers, and your brand awareness is a true reflection of the quality of the goods/services you provide.

 

Pros

  • By re-investing your profits back into the business, you don’t need to seek third-party investment.
     
  • There’s less pressure on your resources and recruitment, as you only need to hire new skills to meet the growing demands of your business.
     
  • Much safer than mergers and acquisitions, because you're using a tried-and-tested business model. 

 

Cons

  • If you find a lucrative market, you might find it difficult to scale the business quickly and keep up with demand.
     
  • It’s a longer-term strategy, so if you’re looking for a quick return, it’s probably not the right strategy for you.
     
  • As an entrepreneur, you might feel constrained operating within one business model, and miss the pressure of being reliant on investors.

 

Mergers & Acquisitions 

 

Growth is fast, fuelled by lots of outside investment; it’s ideal if you need to move quick and take advantage of a new opportunity. An acquisition is when you buy another business and end up controlling it. A merger is when you integrate your business with another and share control of the combined businesses with the other owner.

 

Pros

  • Access the funds or valuable assets you need for new development, such as better production or distribution facilities.
     
  • It can be less expensive to buy an existing business in a new geographical region/market sector, than to attempt to grow organically.
     
  • Become more competitive by lowering your costs through shared budgets, increasing your purchasing power, and buying intellectual property.

 

Cons

  • It can become expensive if you enter a bidding war for an acquisition, or can’t agree the terms of your merger.
     
  • Involving a lot of your time and effort to complete the deal, they can become a distraction, which impacts performance and profitability.
     
  • Your new venture may leave staff feeling uncertain or worried about their future, and it’s possible that you could lose some members of staff.

 

Making it happen

 

Deciding how to grow and actually achieving it are two different things. Achieving true, sustainable growth is difficult, but if you have the desire and genuine commitment to grow, we have the services to support your ambition.

 

Our consultants are industry experts and fully qualified members of The Chartered Institute of Marketing. We provide comprehensive support to help you develop and execute powerful growth strategies that achieve your goals and drive value into your business. We guarantee to:

 

  • Increase your business efficiency: reduce your operational costs and increase ROI on your investment through more structured planning, control and management.
     
  • Create powerful competitive advantage: through things that truly differentiate you from the competition, helping to make you stand out in your industry.
     
  • Acquire more customers: through an integrated sales and marketing strategy that generates leads, grows existing accounts and wins more customers.​

 

It all starts with a one-day Assessment costing only £950. We will analyse your business model, identify barriers to your growth and recommend possible solutions to help you realise success.

 

 

Discover More Below & Contact Us For Your 1-Day Assessment  

 

Further reading


 

 

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