Friday 25th October, 2024
What is Growth?
When defining “What is Growth?”, we each may have a different opinion. Our views will be influenced by our current situation, experience and even where we are.
Likewise, in business, the same applies; “what is growth” can be influenced by numerous factors. For example, Peter Drucker (influential management consultant) said, “Grow or die”. Reed Hastings (co-founder and former CEO of Netflix) said “In this business, you’re either growing or you’re losing ground. There’s no middle ground.”. But, these views can create pressure on company leaders to create growth, but in which direction and how?
Growth example
How many different potential growth areas for a business are there? For example – a cattle farmer.
Areas could include:
- More cows
- More land
- More farmhands
- Diversify and add other animals, i.e. – pigs/sheep
- Diversify and add arable crops
- Increase value per cow
- Increase financial stability
- Increase personal time with family
As you can see from the above list, targets could cover a wide range of options, but all could be considered forms of growth.
Can Growth be Negative for a Business?
Isn’t all business growth good? Well, no, not always.
It can be bad for a business if it is uncontrolled or unplanned. As a result, sudden spikes will;
- create pressure on cashflow
- increase credit risk
- impact service to customers
- increase workload and stress for staff
- lead to a false sense of security
- take the eye off key issues
- hide fundamental issues inside a business
How to Control Growth
Being in control of growth is the key to maintaining balance. Above all, having a clear long-term goal, mission statement and vision, will enable businesses to start with the end in mind. In addition, use these as a lighthouse for businesses to avoid crashing into the rocks. Firstly, create short term strategic plans that break the long-term goal into manageable steps. Secondly, set check points along the journey to keep on track towards the goal.
“What is Growth” Conclusion
Growth – creates an endless list of potential opportunities for businesses.
If done in a sustainable, manageable and ethical way it can lead to great success for individuals or businesses. Ultimately it can only come from two ways. Doing more of what you currently do or doing something different.
Make sure you choose the best growth avenues that suit you!
If you would like any assistance finding the “right path” for your company, why not reach out for a no obligation chat at info@fbsconsulting.com.au or phone 0468 794 040.Also, if you enjoyed this blog there is more to be found at our Latest Blog Pages.
We are here to help your company grow.
Have a great weekend. Drew