A common challenge that all businesses face is the growth of the business, and it is always on the mind of a businessman to think about different strategies to grow their business. People opt for different methods to opt for their businesses in different ways. Growth of a business can be divided into two categories at a most basic level.
The two growths of business are organic growth and inorganic growth. A growth is called organic when a business grows by using internal resources and through the natural system without the involvement of any external factor.
On the other hand, when a business grows by the involvement of external factors such as a merger with other organizations, takeovers, or acquisitions, etc. then it is known as inorganic growth. Both types of growth are important and have their advantages and disadvantages.
But in this article, we will discuss the organic growth of a business, what it is, and how organic growth can be achieved.
Definition of Organic Growth in Business
Organic growth can be defined as the growth output and sales of an organization using internal sources and not by mergers, acquisitions, and takeovers.
The meaning of the term “organic” is something that happens naturally without the influence of any external resources. The same meaning implies to the organic growth of the business when the sales and output of business grow by using internal resources.
The organic growth of a business is different from the growth that happens due to the merger of a company with other companies or by acquiring other companies.
The organic growth of a business requires expertise, smart planning, capability, reputation, and consistent hard work. The profit or earning made by the company is used for the expansion of the business.
The organic growth of a company is shown by the growth in promotions, services provided to customers, better workplace environment, happy customers and employees, and the introduction of new product lines.
Organic growth of business assists in enhancing customer-base and attracting more investors. As both investor and customers want to associate with companies with better work culture and quality of products.
Investors go through the year report of companies to learn about its performance a year ago before putting their money in it.
The growth of a company also reflects in the prices of its products. Different industries measure the organic growth of the business through various means. For example, in retail, the organic growth of a business is measured as comparable growth.
The sales of stores located at different locations or sales of the same store are compared over a decided period, and the organic growth in retail is not measured through opening new stores.
Strategies to achieve Organic Growth in business
Everyone who is in business strives for organic growth, but organic growth can’t be achieved just by setting up your business and leaving it at the hands of destiny. You need to plan your business carefully and work consistently to grow your business.
Adopting a few smart strategies will help you to grow your business organically. In this section, you will learn about a few strategies to grow your business organically.
#1. Focus on your expertise and use it as your selling tool to attract customers:
Your expertise is your that one product which is your identity. Your customers know you by its name.
Don’t take your Expertise for granted when you are trying to expand your business by trying your luck in different fields. It will be disadvantageous for you if you fail to keep the quality same.
Put extra emphasis on to grab the attention of people toward your expertise or to make it visible to them. Target your customers by constructing a campaign of traditional methods, blogging, writing articles, social media optimization, and social media advertising, etc.
You will get enormous benefits if it comes in the eyes of the public. It will attract more and more customers to your business and will enhance your customer base. This process is transformative and can help in the organic growth of your business.
#2. Learn more and more about your target customers:
A business professional makes a common mistake to put all their efforts into developing their marketing strategies and overlook to learn about their ideal clients and about their choices and expectations.
The companies which conduct a regular study on their target customers grow ten times faster than the companies which don’t conduct such studies to learn about their ideal customers and makes much more profit.
Your market efforts will be less effective if you don’t learn about your target customers. In this way, you can develop your competitive edge by avoiding marketing mishaps and on the other hand, if you have knowledge about your customers you can prepare much stronger marketing strategies and you will exactly know where to put money to get maximum profit.
#3. Put your all efforts on a well-defined opportunity:
Once you have research about your target marketing and have outcomes of your research with, you can take some effective steps. Once you know what are the opportunities that you must focus on at present you can concentrate all your efforts on those opportunities by narrowing down your focus from a much wider area too small area.
In this way, you can reduce your marketing expenses and maximize your profits. Businesses which became successful in a short period of time most likely to have a highly-focused function.
#4. Work hard to establish your expertise, something that sets you apart from others:
People have business ideas, but they don’t know what that one thing that sets them apart from the others is. They don’t know their differentiator. A differentiator which is something that makes you unique and keeps you ahead of the competition.
For example, if you run a restaurant and your one unique dish is the expertise that sets you apart. If your products are not directly benefiting for your clients, then your differentiator is of no use.
Your differentiator products must provide an authentic experience to your customers and should be able to address the concern of your clients.
#5. Give equal importance to both traditional and digital marketing:
Keeping the balance between traditional and digital marketing is another aspect that ensures the success of the business. Your customers can be a mix of both digitally literate and people who are not very well-versed with the technology.
For the clients such as youngsters, you should opt for the digital platforms to reach. And for clients who are not well-versed with the technology and still rely on old traditional methods such as old people. You can get information about the choice of your customers with the help of thorough research.
You can choose the right platform to reach your customers on the basis of the data provided by your research. You can use the information to spend your hard-earned dollars in the right place so that you can make maximum profit.
Examples of Organic Growth
The best example to understand Organic growth in a business is the example of “Apple” Company. Since its inception, the Apple company embraced this strategy over the merger and acquisition. Apple has an average of one acquisition in 25 years, whereas other giant companies such as Microsoft have the acquisition of more than 45 companies, and Google has acquired more than 40 companies.
The Apple company grew enormously by focusing on innovation and by not focusing on the merger and acquisition. The Apple companies have grown from zero to the most profitable company of the era by focusing on its differentiator. Their differentiator is their innovation for technology.
They have always introduced A-class products in the past and have the largest number of the loyal customer base. In future also they will manage to make innovation that will make them stand separate from the crowd.