fbpx
Connect with us

Executive Voice

A Comprehensive Guide On Business Growth And Its Importance

silver laptop on white table

Growth is a crucial indicator of a good and stable business. Expanding companies are always on the lookout to boost sales and fortify their market position by acquiring more customers and gaining a larger market share. Still, it is vital to note that the notion of growth is not strictly defined. 

So, what is business growth, and why is it important, especially for start-up companies? This article sheds light on the primary notion of growth and how it differs from business to business. It also explains why growth is one of the most essential elements for small and budding enterprises. 

What is Business Growth?

Business growth is the stage in which a company reaches its saturation point and is on the lookout for additional ways to make more profit. It is an integral function of the industry growth developments, business lifecycle, and company owner’s longing for equity value creation. A growing business is likely to take off in one or more than one way. 

Note that growth cannot be measured using a single metric; instead, multiple data points are emphasized to reflect the areas where a business is growing. These include:

  • Sales
  • Revenue
  • Profits
  • Company value
  • Number of
  • Customers and Employees 

Firms can grow in a few of these areas but remain stagnant in others. For instance, your company revenues are likely to increase despite a standstill in the number of new customers. The gains will increase even if your existing customer base will buy in more quantity. 

Sometimes, two metrics can be inversely proportional. An example would be increased sales due to price reductions but a downfall in overall business revenues. This suggests that defining and measuring growth is complicated. 

A few go-getting start-up companies will go to any lengths to increase the total customer count despite facing losses in the initial growth phases. Conversely, other companies gradually improve their sales and revenues to reach the breakeven point and ensure that their investments will cover the cost.

Reasons why Is It So Important For Businesses To Grow

Growth is an integral element for all business types. Still, the kind of growth is clearly dependent on the company’s growth stage itself. Newly established businesses need to grow initially to strengthen their market position and instantly reach a higher point. This enables companies to generate ample revenue for covering the costs and making a profit. 

Mature businesses do not require fast-paced growth. Still, they might want to keep a watch and ensure the stability of growth metrics. A rise in profits resulting from a boost in sales will help a stable firm generate liquidity and prevent forthcoming risks. 

Business growth enables you to respond better to changing market needs, boost your market share, and make the most of your budding brand. Chances are it will encourage companies to produce innovative offerings and services to customers. This differentiates them from the others and prevents competition.

Growth leads to an increase in company reputation. It establishes credibility, enabling them to widen their supplies and generate higher profits. Still, companies should aim for strategic growth and grow for the right reasons to succeed and sustain in the market.

As risky as growing is for company leaders, it is absolutely vital for the company. Without continuous growth, company operations will start to decline. This leads to reduced product and service quality standards, poor employee and staff morale, and a horde of other challenges. 

Benefits of a Growing and Thriving Business

Moreover, growth is the primary factor in ensuring a business’s survival in the long-term. It is hard for any company to grow and thrive unless it has passed the life cycle’s introduction and initial growth stages. Alternatively, it is absolutely challenging for companies to survive in the long-term if they stop growing. 

The customer needs and preferences and the environmental and technological needs keep changing from time to time, so no one strategy will be fit forever. Hence, it is essential to implement the growth strategies you deem best for your company once the saturation point has been reached. All of this eventually leads to the following set of benefits: 

  • It makes it simpler to increase resources.
  • It permits businesses to increase the sale of products and services.
  • It enables firms to expand business in various other product and service offerings.
  • It makes it easier to acquire new and retain existing customers.  
  • It makes it easy to find and avail new sales opportunities. 
  • It boosts the business’s credibility and reputation, enabling them to widen their supply station, increase profits, and maintain stability
  • It lets them take advantage of new and better economic opportunities.
  • It allows firms to win society’s trust and confidence and create a sense of goodwill. 
  • It helps businesses in effectively facing cut-throat competition on a national and international level.

Josue Arteaga is a Mexican serial entrepreneur, a new-age marketing consultant for realtors, and a Mortgage Advisor. Started his first business at the age of 17 dipping his toes in SEO. By the time he was 20, he was rubbing shoulders with the biggest entrepreneurs and real estate companies in the world. Josue Arteaga has used his new-age marketing strategies not just for clients but for his own ventures as well. He has his hands in the blockchain, real estate, lending, and new-age digital marketing industries. He’s been featured in Inc Magazine, Entrepreneur Magazine, Yahoo Finance, Thrive Global, etc. Josue has worked with world-famous entrepreneurs and influencers such as Tonio Skits, Julius Dien, Sam Bakhtiar, and Ed Mylett. He’s consulted companies like Century 21, Keller Williams, California Bud Co, and Fortafy in leading their branding and growth efforts. Josue has worked with clients worth over $100m, celebs, and the world's biggest entrepreneur influencers like Ed Mylett, Julius Dien, and more.

Advertisement Become A Crypto Expert

Join Disrupt Magazine

Become A Disrupt Contributor

Most Disruptive

Meatsmith Team Snowboard Canada Meatsmith Team Snowboard Canada
Press Release6 hours ago

Beijing 2022: Grass-Fed Beef Protein Bar Meatsmith Partners With Team Snowboard Canada

Meatsmith – Official Partner Of Team Snowboard Canada For Beijing Olympics 2022 Toronto, Ontario – Meatsmith is proud to announce...

Disrupt Prime Video2 days ago

Top 3 NFT Projects under 1 ETH | NFT Disruptors Podcast

A non-fungible token (NFT) is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger. NFTs can...

NFT6 days ago

Polly Kole, The Beauty With Gifted Hands Tycoon Of NFT Sculptures

In a society full of stereotypes, people clinging to appearance and disregarding one’s achievements is the magnificent Polly Kole stunning...

News4 weeks ago

Spider Man; No Way Home’, Crushes Box Office Estimates Generating A Mammoth $253 Million In North America.

After only 3 days in the cinemas, the latest and last Spidey outing disrupted the international market as the highest-grossing...

Cryptocurrency1 month ago

Nike just bought a virtual shoe company that makes NFTs and sneakers ‘for the metaverse’

Nike, the sportswear mogul, recently stunned the globe as it moved into the realm of the metaverse industry and blockchain...

QR code screenshot QR code screenshot
Diversity in Tech1 month ago

BTC did 62% more in transactions than PayPal this year

MasterCard and Visa have always topped as the runaway leaders; however, Bitcoin’s Lightning Network will soon disrupt this norm. Starting...

high angle photo of person holding turned on smartphone with tall buildings background high angle photo of person holding turned on smartphone with tall buildings background
Social Media2 months ago

How to Organically Grow Your Social Media Following In 2022

Instagram On Instagram, use Reels to reach new audiences and grow – find popular sounds and use them in your...

gold-colored Bitcoin gold-colored Bitcoin
Cryptocurrency2 months ago

Julio Domenech On How Banks Can Engage In Bitcoin in 2022

As cryptocurrency continues to become a popular trend in the US, many people are looking for an opportunity to participate...

Diversity in Tech3 months ago

Microsoft Teams, Incorporating New 3D Avatars And Virtual Meeting Spaces Before Mid 2022

Microsoft Mesh has always led as the future of Microsoft Teams meetings. However, Meta, the newly launched Facebook company, is...

Health + Fitness3 months ago

Stephen Campolo – How A Former Fat Kid Transformed His Body And Is Now Helping Others Do The Same

UPDATE: During a recent interview with Yahoo! News, Stephen revealed that he will be speaking at the next Disrupt Puerto...

Trending

Copyright © 2020 Disrupt ™ Magazine - Disrupt is a Minority Owned Privately Held Company

Disrupt ™ is the voice of Latino entrepreneurs around the world. We are part of a global movement to increase diversity in the technology industry and we are focused on using entrepreneurship to grow new economies in underserved communities around the world. We enable millennials to become what they want to become in life by learning new skills and leveraging the power of the digital economy. We are living proof that all you need to succeed in this new economy is a landing page and a dream. Disrupt tells the stories of the world top entrepreneurs, developers, creators, and digital marketers and help empower them to teach others the skills they used to grow their careers, chase their passions and create financial freedom for themselves, their families, and their lives, all while living out their true purpose. We recognize the fact that most young people are opting to skip college in exchange for entrepreneurship and real-life experience. This Podcast was designed to give them a taste of that.