Business growth: what strategy to adopt to make it grow?

What growth strategy should be adopted to make your company grow?

 

For a company director, manager or entrepreneur, the economic growth of the company is one of, if not the main reason for their concern. Whether they are small and medium-sized enterprises, intermediate-sized enterprises or companies belonging to large groups, developing growth is at the heart of the strategic issues for all companies.

As a result, a growth crisis can have important or serious repercussions on the future of one's company. Consequently, an insufficient or zero growth rate is problematic for the ability of firms to innovate and to stand out from competing companies.
This is why it is essential to put in place efficient growth strategies to enable companies to maintain or obtain a leadership position, to have a competitive advantage and to have prospects for evolution.

Growth, the quest of every entrepreneur

There are various levers to be used to promote business growth. What is the best strategy to put in place to reach the Grail? This article provides the answers.

Growth strategy: focus on 2 possible paths
When an entrepreneur wants to develop his or her business, there are several possible approaches. Which strategy is best suited to the objectives? Two methods are generally used for this purpose:

Internal growth strategy
External growth strategy
Also known as organic growth, this involves developing the business by mobilising the company's internal resources to increase turnover. Here are some examples:

Recruitment, which allows the acquisition of new skills
Targeting new markets
Improving customer relations to build loyalty and win new customers
Diversification of the service offer and development of new products
Digital transformation to provide a new customer experience and increase productivity
Investment in research and development to gain competitive advantages, and possibly even to register new patents

These projects allow the company to grow and diversify its offer, which can help it to gain market share and thus acquire new customers. This type of growth can be implemented regardless of the company's sector of activity. Here are the main advantages and disadvantages:

Advantages of an internal growth strategy

  • The growth process is generally long but is considered more secure
  • Independence is maintained thanks to the self-financing capacity
  • The pace of growth is defined by the company and can therefore be controlled as projects progress
  • Offers employees new career prospects and new challenges
  • Disadvantages of an internal growth strategy
  • A development strategy that achieves results over the long term
  • Can be expensive and sometimes requires significant financial resources, it can be difficult to apply for funding
  • A sudden arrival of a competitor with an aggressive strategy can be a threat (by virtue of the funds mobilised and the time spent)