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.