How Is Business Growth Defined and How Do We Measure It?
It’s vital for ambitious businesses of all sizes to seek methods of growth.
Traditionally seen as the point at which a business expands or scales up, in actuality, there are endless ways for a business to grow and endless ways to measure business growth.
Ways to measure business growth
Revenue: A growth in revenue caused either by an increase in new customers, an increase in the money that existing customers spend, or a combination of both.
Sales: An increase in sales transactions made by customers/clients. Sales may decrease without affecting revenue negatively, and revenue can increase even if sales drop if existing clients are spending more money.
Website traffic: An increase in website traffic is a good indication that your business is becoming known to more people. Traffic increases often come hand in hand with increases in sales and revenue, as well.
Staff: The number of staff on your payroll is a key indicator of business growth.
Reputation: How often and by whom your business is being talked about is another indicator of business growth. Carrying out market research and monitoring traditional and social media can give you an idea of how people are responding to your business.
Company value: Your company value will fluctuate depending on the factors above and others.
Ways to drive business growth
There’s no simple formula for driving business growth. Much will depend on the businesses’ product/service and individual objectives. Below are some of the ways you can help your business live up to its full potential.
Strategy: Establish a robust growth strategy or explore new directions for the business. Trialling strategies and replacing those that aren’t working with new ones can change the way your business operates and promote significant company growth if it’s done well.
Harness the power of marketing: Marketing your business through the right channels and developing the right strategies for your marketing – both on and offline – will encourage huge business growth.
Build partnerships: Building partnerships will help boost the reputation and value of your brand. To ensure partnerships are effective, clearly define the relationship at the outset. Keep communication smooth and expectations managed appropriately.
Invest in staff: Your staff are the backbone of your business, so make sure you invest in and develop talent. Investing in your workforce improves staff happiness which in turn boosts productivity and attracts new talent, driving business growth.
Invest in research and development: A growing business needs to stay ahead of its competitors by producing innovative products. By investing in research and product development, you’ll be able to cement your position as a market leader, improving your reputation and, potentially revenue.
Business growth will also require an organisation to use or develop automation platforms that will help speed up operations to keep up with customer demand.
Expansion to new locations: If your business is already well established, expanding your business to new locations could be an effective way of growing your customer base and reputation, promoting business growth.
Enlist the help of a business growth expert: Working with experts in the field is a sure-fire way to boost the growth of your brand. Consorticon Group has supported tens of businesses in preparing, planning, and executing for growth.
We can support you with the logistics of growing a business from creating growth strategies through to preparing you for investment pitches. As entrepreneurs ourselves, we understand our clients’ fears, concerns, and needs, and we have a track record of achieving amazing results.
Are you ready for tailored support on growing your business? Let’s work together.