What is Business growth?
It is when a Business decides to take the financial risk of expansion to
try to find more options to generate more profit, increase their market
share, and gain greater power to control the market.
How do some businesses decide to grow?
There are many ways that a business can grow depending on their size
and objectives, however, business growth can be usually achieved by:
• Internal growth – when a business expands by increasing the
number of their products, developing new products, or finding
new markets for its products.
• External growth – which occurs when a business merges with or
takes over another business in the same or a different industry.
Advantages of business growth:
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Creates new opportunities
Expand your products or services
Attract more customers
Increase sales and revenue
Disadvantages of business growth:
• Internal growth tends to be slow, which allows businesses with an
external growth strategy to grow much faster
• Managers from a business merger may have different
management styles which could lead to poor decision making
• The original owner might lose control of his business after a
takeover