For a business leader, manager or entrepreneur, the economic growth of society is one of, if not the main reason for their concern. Whether small and medium-sized businesses, mid-sized companies or companies belonging to large groups, developing growth is at the heart of the strategic challenges for all companies .
Therefore, a growth crisis can have important or serious repercussions on the future of his 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 leading position , to have a competitive advantage and development prospects .
Growth, the quest of every entrepreneur
The levers to be activated to promote the growth of the company are diverse. What is the best strategy to put in place to reach the Grail? The answers in this article.
Growth strategy: focus on 2 envisaged paths
When he wishes to develop his activity, the entrepreneur has several possible approaches. Which strategy is best suited to the objectives pursued? Two methods are generally used for this:
Internal growth
Also called organic growth , it is a question of developing one’s company by mobilizing internal resources in the company to increase turnover. Here are some examples: Recruitment that allows the acquisition of new skills Targeting new markets Improving customer relations to retain customers and win new ones The diversification of the service offer and the development of new products The digital transformation that will allow a new customer experience and an increase in productivity Investments in research and development that will enable the acquisition of competitive advantages, and possibly even the filing of new patents.
Seeking funding from BPI france, for example for the development of innovation activities and for business development projects for export
These projects allow the company to grow and diversify its offer, which can help it gain market share and thus acquire new customers. This type of growth can be implemented regardless of the business sector of the company.
Benefits of an internal growth strategy
The growth process is usually long but is considered more secure Maintained independence thanks to self-financing capacity Maintained independence thanks to self-financing capacity The rate of growth is defined by the company and can then be controlled as projects progress Offers new professional development prospects to employees and new challenges to take up Disadvantages of an internal growth strategy A development strategy that achieves long-term results.
External growth
An external growth strategy consists of developing a company through a merger operation or an acquisition project with another company with the aim of bringing them together.
Combining two entities is, from a strategic point of view, a good way to achieve rapid growth. Depending on the profile of the target company, whether with a view to acquiring a young company with high potential (rather frequent case in the life of a startup) or considering the absorption of a competitor, the results will be felt quickly.
A merger and acquisition is a growth accelerator for your company which very often makes it possible to gain in competitiveness. Here are the main advantages and disadvantages of external growth operations:
The new structure must adapt from an organizational point of view (integration can be complex and requires significant business transformation work)
Employees may have doubts about their future in the post-merger company, the company must set up effective internal communication to reassure and launch a change management project
Beyond the purchase price of the new structure, it is necessary to anticipate the effort necessary for a successful merger (communication, harmonization of processes, change management, etc.)
The corporate culture may be different between the 2 companies. An action plan must be put in place to retain and mobilize the employees who will join the company.
The two growth strategies are not mutually exclusive; it is entirely possible that business growth can be achieved with the combination of these two methods.
The key success factors for growing your business are multiple, but the success of such an operation does not depend on chance. To drive growth and achieve the objectives set, the people chosen are as important as the strategy implemented.
Determining the right growth strategy for your business is pivotal, and partnering with a data mining service provider can expedite this process. By leveraging their expertise, you can harness valuable insights, identifying market trends and consumer behaviors. This enables the formulation of an informed growth strategy, enhancing market penetration and business expansion.
