Four Strategies to Achieve Organic Business Growth

Every business strives to grow organically! By organic business growth, we define the growth, where production and sales are enhanced by internal methods. The rise of the company’s sales and expansion lean on the business’ means.

Advantages and Disadvantages of Organic Business Growth

Organic business growth has several favorable results to the company. Among the advantages are that organic growth encompasses manageable operation and coordination of the business. This happens due to the utility of internal resources. In addition, the same fact of being based on the business’ own powers, results in a decrease of risk and a more stable profit.

However, an action of organic growth may include disadvantages as well. For example, in a case of cash shortage, the business owner might search for additional cash resources.

Organic Growth Strategies

Organic growth strategy is vital for the success of a company; hence, vital in achieving organic growth as well. Here are four strategies that drive to business growth:

  • “Protect and build” strategy is the approach, where the company’s establishment is achieved in the market by selling more existing products to existing customers.
  • There is also the strategy of product development, where the business focuses on creating products and services; and, promoting them to existing client. The key element of this strategy is researching and mapping the market’s gaps.
  • An additional approach is market development, where existing products enter new market, whether that is other industry sectors or other regions.
  • The riskier strategy of all, is the development of new products and services and entering them into new markets.

Institute of Entrepreneurship Development (iED) is an active participant in numerous European projects that research this subject.

Among these projects is the Erasmus+ project “ROSE: Rural Organic Sustainable Enterprise”. It is a strategic partnership between four countries; and, is aiming at promoting sustainability in organic businesses. For more information, regarding ROSE, you can visit the project’s official webpage.

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