Seven paths to growth
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For an existing business, there are usually seven possible paths to growing revenue and profitability. The following resource expands upon these seven growths paths and will assist in determining which one or two paths you should be focusing on.
There is more to growing a business than simply making it ‘bigger’ – there are a number of ways you can achieve growth, and selecting the right path is crucial. Growing too fast, or in the wrong direction, will end up costing you time and money, and might set your business back instead of taking it forward.
In this video, Bill explains the importance of exploring all of your growth options via a ‘Growth Path Analysis’. A Growth Path Analysis involves the business owner and other key people in the business identifying the risks and rewards of each growth path and creates ‘buy-in’ amongst stakeholders that will encourage them to see the project through.
For an existing business, there are usually seven possible paths to growing revenue and profitability (although it is rare for a business to pursue more than one or two at a time). These are:
- Retain and grow existing customers
- Optimise pricing
- Attract new customers
- Offer new products/services
- Improve process efficiency
- Acquire and integrate competitors
- Enter new geographic areas.
Business growth scoreboard
So you’ve decided to grow your business. You’ve chosen a path and made a plan – how will you measure your progress? Measurement needs to be taken across all aspects of the business, not just profit. A comprehensive measurement strategy will teach you more about your business, and make it easier to adjust and improve your growth path.
It is important to monitor growth in your business so that you can identify any issues, make improvements and ensure that your growth is sustainable. The resource document attached to this page contains a template you can use to measure your business, allowing you to direct your growth and improve in areas that are lagging behind.
