Business Growth Strategy Options

By | October 28, 2023

Business Growth Strategy Options – Contrary to popular belief, global growth strategy is not about getting more customers and selling more products. I mean, getting customers is very important, but there are so many a

If what you want is to learn about different ways to target more customers and grow your existing businesses, then I recommend downloading a free copy of my book.

Business Growth Strategy Options

Business Growth Strategy Options

, where I explain how established companies and startups are implementing AI and other technologies in their marketing efforts.

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But if you’re looking for a comprehensive growth plan, then you’ve come to the right page, read on.

As we have explained in our business strategy, the first order of business for any entity is to have a core business under control, which means ensuring that the company’s products and services are in a profitable and profitable position in the market.

Once you achieve this, you can shift your focus to growth and start thinking about different ways to increase the value of your business in the near future.

In an ideal world, we would expect managers to only pursue growth measures that are beneficial to their organization, but in reality, we have all seen how pressure from shareholders and investors and misleading incentives can lead a company to sometimes pursue growth.

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In general, we say that a growth plan is global if a combination of the following conditions are met:

For this reason, you should always pay attention to the “cost” of your growth effort (both financial and non-financial) and how you expect these efforts to be sustainable over time.

In this article, we explore the many ways you can grow any business and provide ideas to help you create your own growth plan. These are some of the things we will cover:

Business Growth Strategy Options

We’ve included some charts, links, and other references to help you better understand what a good growth strategy is. We’ve also created a mind map with all the growth strategies we cover so you can download and take notes as you read this article.

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This mind map is also a visual representation of the strategic choices you can make as a business executive when developing a new growth strategy.

) or “Free Cash Flow” (commonly referred to as FCF), concepts we consider further in our Financial Analysis section.

Your job as a business manager is to examine how this list relates to your organization and make informed decisions about which trends you believe will have the greatest impact on your bottom line.

A collection of carefully selected strategies is the core of your growth plan, which together with your strategic positioning and implementation process, gives you everything you need to succeed in creating and executing your plan.

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While a growth strategy can be broadly defined as a set of business initiatives aimed at increasing a company’s bottom line, I prefer to speak in terms of a company’s management strategy.

Organizational growth, which contains actions taken by the executive team to increase value in the near future.

Not all growth strategies will have the same impact on the company and for this reason, it is necessary to limit the nature of their initiatives.

Business Growth Strategy Options

Go with the minority that will produce the most impact in the given time, with the least effort and resources.

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That’s why your growth plan must be strategic in nature, because in the end, no company has unlimited resources or bandwidth to manage to follow every opportunity that arises, so you must carefully choose the things to which you will devote your attention and resources.

This results in a growth strategy that requires doing more, improving it and finding new ways to create value, leading to a growth and synergistic approach.

I’ve also found this list helpful in clarifying sources of growth in executive meetings and making better decisions about resource allocation.

But beyond sorting out growth opportunities, the main issue you often face is choosing which growth initiatives to focus your energy on.

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The best way to start a growth plan is to predict the growth of the “gap” that new businesses want to fill.

For example, let’s say you plan your strategy for the next five years and your goal is to grow by 15% per year. If your current business is projected to generate $100 million in net income this year and you expect it to grow at a rate of 9% per year, you can easily calculate the type of income your new business will need to generate annually.

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Having a number that shows the revenue gap can help you better understand the type of growth steps you need to pursue.

Business Growth Strategy Options

For example, in the case above, you may know that the growth strategy ventures you choose should bring in $47 million in net income at the end of the fifth year, which can help you prioritize and make their choices easier.

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A good way to think about potential campaigns is to go through each of the growth paths we mentioned earlier, asking simple questions like:

Ideas that show the best potential can be further developed to get a better idea of ​​the kind of profit they can make, the level of investment required, cooperation and building capacity, etc.

There is no perfect way to select strategic growth opportunities as the selection must respect the variety of business preferences (including returns) and meet current strategic goals.

Our recommendation is to choose a few investment metrics that are most important to your business (for example, net income, required investment, yields, preferences, or for strategic reasons), then “close the growth gap” by starting with campaigns. promising to improve those metrics until the gap is closed.

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Ideally, you’ll end up with a growth plan balanced across all three of McKinsey’s areas (expansion, construction, and optimization), but in reality, you’ll end up with a strong bias in one direction, based on your expertise. The main ones at the moment, which is good in our experience.

The next step is to work on your five-year model which is the subject of the next section.

Logic, where you want to increase the value of the portfolio as a whole over a period of time, usually five years.

Business Growth Strategy Options

This provides a 5-year growth model, which will help you better coordinate efforts across business units and make better capital allocation decisions.

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Putting all your eggs in one basket is always dangerous, and while it is true that many companies have been very successful by betting on new products and technologies, there is a difference between betting “big” on a growth initiative and betting “All”.

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Of your growth initiative that includes multiple markets, business units, or products that may be launched at different times in the future.

By creating such a map, you can easily track all the opportunities in your pipeline, better tools to measure between each other.

Unless you can tell how much each effort is contributing to the growth of your business, you won’t be able to get the most out of it. You know, when Peter Drucker said “

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By understanding how each business unit, product, or improvement experiment contributes to your company’s growth, you can double down on what’s working, focus on what’s missing, and find opportunities for improvement.

, created by Michael Treacy and Jim Sims that allows you to create a beautiful waterfall that shows how your income comes out over a period of time, which is very useful for evaluating growth efforts and restoring resources.

We describe this tool in great detail in the book where we provide a step-by-step process for creating a waterfall.

Business Growth Strategy Options

You can make a similar division of profit or net income if you have enough information to allocate expenses and balance other accounts, but this sales report can give us a good start to understand where our income comes from.

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Mind, where you want to maximize the systematic growth generated by the portfolio as a whole over a period of time.

This will help you better coordinate efforts across different business units and make better capital allocation decisions that will lead to a better growth strategy.

You can do this by placing the business units in a four-by-four matrix based on their competitiveness and the planned growth potential of their markets.

It was revised by the Boston Consulting Group (BCG) in its early days, where we use competition and market forces as a proxy for real size.

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Following the BCG naming of each quadrant, we can define each business unit as one of the following:

By choosing where each company fits into the matrix, you can evaluate its competitiveness based on its ability to secure a profitable position.

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