Every startup or an existing company hopes that their business grows and expands to make more profit. But how do we do this? What does it mean by a business’ growing’? These are some questions you might be asking yourself. So let’s break things down!
1) What is business growth?
Business growth can be defined as an increase in the value of your product/service over time. This value is represented by revenues, profits, market share, etc. However, there are many ways to calculate these things, and different companies have their own methodologies. So whether you want to measure revenue or profitability, for example, then you will need to figure out a way to do so.
2) Why is business growth important?
There are several reasons why business growth is important to every company. These include:
a) Increase in size and profit
Every company wants to grow larger and bigger. If they don’t grow, they feel like they aren’t growing. As such, if they increase in profit and sales volume, they would be able to sell at higher prices and make a better return on investment.
b) Lower costs
Another reason for business growth is that once the company has grown, it would be able to achieve lower operating costs, thus saving money.
c) Brand recognition
A company with high brand recognition and visibility would be able to attract more clients than those who don’t have any name recognition. More exposure usually leads to more sales since it’s easier to get new customers than convincing existing customers to buy from you again.
d) Long-term success
As long as a company continues to grow and expand, whether it be in terms of the number of employees, products sold, or just the total number of customers, it will continue doing well in the future. The main reason is that people trust them and keep coming back to them, especially if they offer great customer service. They also build up good relations with other businesses, which result in referrals and word-of-mouth marketing.
e) To attract top talents in the industry
If a company wants to attract new and highly talented staff, they must grow to ensure they have enough workspace. A lack of workspace and office space also means that people won’t know about your company and may not apply as they think they wouldn’t fit into the culture. Also, the bigger the company is, the larger the compensation pool becomes, and therefore, the chance of finding someone suitable increases.
All the best!
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