Business growth means the growth of stakeholder’s wealth. What represent the business growth? The business growth does not only mean big profits but it includes the expansion of product line, acquisition, market penetration and other factors. Before planning for your business growth model you have to analyze your market position, your strengths, your weaknesses, available opportunities and pertinent threats.
Business growth means capitalizing on your strengths along with competitors weaknesses to achieve the competitive advantage over your rivals. You can list down different factors on which you can expand your business; these factors can include production and cost efficiency, product distribution, logistic and inventory, raw material supply and other such options. Actually business expansion is to follow either forward integration or backward integration with market penetration and also market concentration. Forward integration can be done by taking control of distributors, developing own franchises or through direct selling. You can get backward integration by getting control of raw material.
Other than these above techniques the business can get growth through joint ventures, mergers and acquisition which ever seems better according to prevailing market conditions. The five stages of business growth can be defined as growth through creativity when an entrepreneur takes risk of developing a new business, the second stage is growth through direction, then growth through delegation which means empowering your employees with resources and outsourcing, growth through coordination and the last but not the least includes growth through collaboration. Good luck! May you get success in expanding your business.
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