Growth is an imperative. You have to continually strive to get bigger because there are so many forces, domestic and foreign, that are conspiring to make you smaller! These include business rivals, replacement technologies, new products, government rules and regulations, financial downturns, lawsuits, disloyal insiders…I could go on, but you get the picture. Many of these forces are partially, or totally, outside of your control.
So, if we agree that every business needs to grow, then every business needs a Growth Strategy.
Growing a business is simple (notice I did not say, “easy”!). There are basically only 3 ways to grow a business:
- Sell more current products to current customers
- Add customers
- Add products or services
- Do all the above
Some would argue that growth via acquisition is a fourth way, but I view most acquisitions as just a shortcut to either adding products, or adding customers. For most small to mid-sized companies, an acquisition growth strategy is not an affordable option anyway.
I always encourage owners to pick choice D. above. Why? Because working on projects related to A, B and C simultaneously greatly increases your chances of success. A single project may turn into a home-run, resulting in geometric vs. just organic growth (Think Apple’s I-Phone).
Remember, whether your Growth Strategy is a separate document or embedded in your 3-year Strategic Plan, it HAS to be in WRITING!
All the Best,
Rick