Most businesses, large and small, view growth as a primary objective. It is widely accepted that businesses must “grow or die,” and that failure to grow increases the risk of being overtaken by competitors. But how to grow is another story. Where are the opportunities, how should they be prioritized, and how should the organization change to best capitalize on those opportunities? The key to steady, profitable, and sustainable growth is executing a growth plan that makes sense for your industry and organization. That is how AriVance Business Growth Consulting, LLC can help your business grow.
While growth often bestows many advantages on a business, not all types of growth are good. Market share gains reflecting unprofitable deals with no end in sight are a recipe for disaster. Unsustainable growth may lead to overcapacity, or may tax existing systems, processes, and people to the breaking point. Companies that grow too fast, without the proper support systems in place, may damage customer relations in ways from which it is difficult to recover.
Examples abound, but a particularly striking one from our experience is a manufacturing company that was geared to high-volume customers. Envious of the margins of some niche-oriented competitors, it decided to grow market share by serving these low-volume segments. However, it merely instructed its sales organization to aggressively secure such business without making any changes in engineering or operations. The result was unsustainable growth, reduced satisfaction among core customers, and ultimately the abandonment of the new segments. With a proper plan, however, this need not have been the outcome.
These are concerns that need to be addressed by all firms. But recent research indicates that the risks of not planning for growth are particularly severe for small to mid-sized businesses. The margin for error in these companies is quite low. They often don’t have the resources needed to weather a damaged reputation or other issues caused by overexpansion.
The answer is not to abandon aspirations to become a larger company, but to carefully evaluate growth opportunities while putting in place a plan to manage the growth properly. At AriVance Business Growth Consulting, LLC, we are committed to helping small and mid-sized businesses benefit from the innovation and growth processes which have made large firms successful, including a rigorous planning cycle.
Let AriVance become your partner in growth. Begin the transformation of your business today with a phone call: (240) 439-5980. We look forward to your success.