The growth of a business is not always a guarantee. The growth of a business is identified as a core value in business culture and is a parameter to recognize and celebrate growth. The fickle economy can bring down today’s high-growth small start-up crashing to become tomorrow’s stagnant company. In this time, we must ask ourselves, what is the most efficient way to evaluate and recognize growth in order to sustain it? The secret to unfold this mystery lies when one can sufficiently understand the distinction between growth-driven business and growing business.
What do you mean by a Growing Business?
The first indicator to figure out if your business or someone else’s is a growing business is to evaluate the percentage of annual revenue increase annually. In a growing business, you will observe consistent charts of revenue increase annually. You can go a step further and measure gross profit or EBITDA (earnings before interest, taxes, depreciation, and amortization). Another indicator is to evaluate the increase in employees who join annually. The company’s percentage of market share is another great indicator. These indicators help to suggest momentum which is the ability of a business to maintain its graph of success over time.
What is a Growth-Driven Business?
While treading with caution, we must take a serious look at what distinguishes a growth-driven business and growing business. Hereunder are some essential elements of a growth-driven business.
Systems and process are growth driven
The companies which are growth-driven plan and build consistently. They are always a step ahead of their growth trajectory. A growth-driven company will identify that they must have adequately planned three main elements which are revenue generation, customer service, and technological developments. While a growing company would put all their resources into sales and marketing.
A market-focused and market-responsive business strategy
A growth-driven business evaluates, examines and understands how the market functions and develops. This means that they really look at the customers and even potential customers. Further, they are responsive to the changing demographics.
Aligning sales and marketing
A good strategy is to effectively integrate sales and marketing via digital and non-digital avenues. A growth-driven company would follow a unified approach. Often sales and marketing experts do not see eye to eye and that leads to the problem.
Define the brand
A company that is growth-driven will ensure that it not only defines what it stands for but also make sure it delivers upon its promise. While defining a company it is essential to see what it stands for and where it comes from. It injects life into the company.
Integrating customer awareness, retention, acquisition and leveraging
A growth-driven company will recognize the need to not win the battle but the war by strategically interacting with customers. Your goals must align with what you are putting on it and the customers you are serving.
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