Choosing the right strategy for growth

By Simon Robbins

Companies emerging bloodied, bruised, and battered from the troubled economic situation are starting to think about the future, with the question of how to accelerate growth being high on their agendas.

Lots of growth options are available – launch new products; raise/lower prices; enter new geographic markets; acquire a competitor – but how do you choose the right one?  Try to pursue too many options at once and you will dissipate resources and ultimately achieve nothing.

Much better to invest time up front to choose the growth option that is right for you.  Do that by asking yourself the following questions:

By how much does the company want to grow?

– What is the growth objective?

– What measure of growth is most important (sales, profits, other?)

– Over what timeframe should the growth objective be achieved?

How much growth will the existing business deliver?

– How much growth will existing products and services deliver?

– How much growth will the existing approach in sales, production, etc. deliver?

– Are there products and services which on closer inspection are draining company resource and, if so, should they be discontinued?

– Is the company growing with the market (and if so, how much will the market grow in future)? Or is it also taking share from competitors, and if so, will that continue?

– Is there a gap between the company’s growth objective and the growth that the existing business is likely to deliver?

 What is the best way to close the gap?

– Should new products / services be launched?

– Should new markets (including online) / customer groups be addressed?

– Is a new approach required (e.g. on pricing)?

– Would acquiring another business be the most effective way of growing?

Thinking through these questions will be key to helping develop a growth plan for your business.  Without it, there is a danger you will drift along, growing with the market but failing to truly capitalise on your real potential.

Simon Robbins has 30 years experience in helping companies to grow. If you are considering your company’s opportunities and would appreciate a sounding board, contact Simon for an informal discussion on 07951 788376.

October 2012