The Importance Of Business Growth

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Business growth Growth is a natural by-product of a thriving new venture. It enables a new company gain a foothold in the market and also helps to maintain or secure competitive advantage. (Kathleen 2005, 356). Growth is complex and challenging, it comes with another phase of business risk. Growth brings change; growth requires continuous learning and improvement. Generally, expansion requires people and processes and if they are not properly planned and managed, the expansion process can lead to failed initiatives and also stress out the people and processes involved. Since growth is dynamic, it has to be managed proactively. (Hess 2011, 12 Growing an Entrepreneurial Business) Even in the face of enormous market demand for a company’s product…show more content…
Companies should not grow for growth’s sake but have a more realistic view of growth. It is essential for an entrepreneur to understand that if growth does not have a coherent plan and budget to match the plan, it can undermine the fundamental strengths of a business. In fact, research has shown that, in some circumstances, excessive growth can kill a business. Getting bigger and bigger should not be a business goal but continuous improvement of its customer value proposition should be the prime objective, by doing this, a company can beat its competitors with its value. (Kathleen 2005, 358; Hess 2012,…show more content…
The decision should rather be a strategic decision made only after a proper assessment has been carried about the risks of growing or not. Successful growth depends on the timing, processes, capital, and whether the right people are available, the controls to manage the growth should also be in place. (Grow to greatness) The question comes down to, how then does an entrepreneur make the decision on whether to grow or not to? Hess (2012) in his book “Grow to Greatness” developed a tool called the “Growth decision template”. The tool consists of strategic questions for business owners to analyze a company’s risks of growth. It should however be noted that the decision to grow sometimes might not be the entrepreneur’s decision at all but demand for the company’s product or service might compel the entrepreneur to keep up with the market. (Kathleen 2005, 358; Hess 2012, 26) (Hess 2012,
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