GROWTH STRATEGY: LEAVE IT ALL ON THE FIELD
A solid growth strategy provides companies with a quantifiable vision for growth in revenues and profitability; thereby, enhancing the value of the company post-implementation and increasing its attractiveness to strategic buyers.
Company owners must identify the value drivers of their business, determine an acceptable level of risk, and decide on the best method for their business’ expansion and growth. Although largely contingent upon finances, the competition, and government regulation constraints, some of the most common growth strategies for businesses include:
- Market penetration – sell more products, current customers
- Market expansion/development – sell more products, adjacent markets
- Alternative channels – different avenues, i.e. Internet
- Product expansion/development – new products, existing customers
- New products for new customers
- Acquisition – horizontal, forward, backward
- Diversification – unrelated businesses
With the successful implementation of a growth strategy and anticipated earnings growth for the foreseeable future, business owners position themselves to receive numerous offers for their business and capitalize on a much higher sales price.
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