SUSTENANCE AND MAINTENANCE BUSINESS GROWTH AND DEVELOPMENT

SUSTENANCE AND MAINTENANCE BUSINESS GROWTH AND DEVELOPMENT

QUESTION

As a business man for about 7 years experience, invalidating, planning and implementation to see the light of your business success, but still suffering from certain constraints, explain way and manners in which you can sustain and maintain business growth and development

INTRODUCTION

Businesses organization of any type and size look for ways to expand their market share and increase revenues. Organization often choose to implement specific growth strategies to overcome several challenges faced and advance their business. Business growth and development is a phenomenon that occurs when business owners, employees and outside factors influence the success of a company. A business grows when it expands a customer base, increases revenue or produces more product.

Growth and development is the goal of most businesses and is the reason behind many decisions that affect the daily workings of a company both internally and externally. Business growth is impacted by consumer trends, market opportunities and decisions made by company leadership.

Growth and development of a business organization takes planning and concentrated efforts that fall into these main categories: Organic growth which happens when a business creates the right conditions for expansion. This includes physically expanding office space to allow for company growth or increasing product offerings;A strategic approach which focuses on long-term growth through specific initiatives. Businesses often move into this growth stage after a period of organic growth. Companies may try to gain a share in untapped markets or plan to produce new inventory; Partnership/merger is growth and development strategy which occurs when a company joins with another business to create more market opportunities and finally an internal growth strategy that works to maximize internal processes to increase business and revenue.

WAY AND MANNERS THAT CAN SUSTAIN AND MAINTAIN BUSINESS GROWTH AND DEVELOPMENT

For business organization to surmount their challenges, the need to focus on planning. A business plan is a written document of research proposing business activities before a business owner begins developing a product. Planning should begin with the development of a forecast for profits, income, and cash flow for five years.

Chaudhry et al. defined strategic planning as the process of awareness on business environment, documentation about the future course of action, and awareness of short and long-term implications of strategies.

Therefore, business organization need to face the challenge of developing strategies which will add value for sustainable growth and development. Thus, strategic planning is a process aimed at documenting strategies which may result in a positive performance of the business. 

There for the business organization to be sustained and maintain business growth and development the following must be put into consideration

1. Market penetration: Market penetration occurs when a business tries to generate further growth within their current market. To do this they may try to lower prices or increase marketing efforts to gain more market share. Increasing brand awareness can be an effective way to implement this strategy.
2. Product development: Businesses may choose a growth strategy that involves innovating current products or creating new ones to increase revenue. Some companies choose to take existing inventory and add new features to attract more customers. Investing in the design and creation of new products is one way businesses foster growth.
3. Market expansion: In the market expansion method, a business tries to expand in their current market by reaching untapped customer bases. For example, an office supply company may try to gain market share by selling to educational institutions, healthcare organizations and government agencies instead of strictly selling to corporate office clients.
4. Vertical integration: Companies who decide to growth through vertical integration strategies take on another part of the manufacturing or distribution process. This may mean that a company begins to produce their own packaging materials or buys a factory that produces a key item for a product.
5. Productivity and efficiency: Some businesses grow by changing their processes to increase productivity. Efficient production methods can help cut costs and increase revenue. A business may choose to conduct an audit of their manufacturing processes, distribution methods and other parts of their production chain.
6. New geographies: Investing marketing efforts into expansion in other locations can also be a growth strategy for businesses. This can mean regional, national or even worldwide expansion of product offerings and distribution. Offering products outside of a current geographical area can generate new revenue streams if distribution is also handled effectively.
7. Share of wallet: By focusing on customer retention and quality service, companies can initiate growth by expanding sales to current customers. Selling to existing customers typically costs less than other marketing efforts. This strategy can be effective for companies with excellent customer service practices and a loyal customer base.
8. Diversification: Companies that choose to grow through diversification create new products for a completely new market. This kind of growth may mean moving into international markets or areas where the company has no prior sales history. Some companies do this by looking for areas of large-scale expansion, hoping to gain market share. Diversified companies may own a stake in multiple industries through a range of product offerings.
9. Acquisitions: Companies may implement a growth strategy by buying another business. A company might buy out a competitor to absorb their market share and acquire their assets. The parent company will then experience growth in sales and revenue. This strategy encourages more immediate growth because a business is essentially buying into a market instead of having to invest time in organic growth methods.
10. New channels: Offering products through new distribution channels is another way for businesses to expand. For example, a company may decide to offer product in retail stores after operating exclusively online. A company may also decide to work with consumers instead of selling just business to business.
11. New business models: Changing the way you do business can affect growth patterns in a company. When a business decides to make operational changes, they have the chance to create more growth opportunities using other strategies.
12. Investment: Owning shares and investing in other companies may be a way to expand business growth. When a company uses their revenue to increase the assets of another business, they have the opportunity to receive benefits as a stakeholder. This may include dividends, stock options or other investment earnings.
13. Market segmentation: By focusing on a small segment of industry and growing specifically in that area, businesses often find growth opportunities. Small businesses can benefit from this strategy in markets where big businesses already dominate a large portion of the market share.
14. Business partnerships: Strategic partnerships can increase business growth by leveraging the key elements of two or more brands. In this strategy, businesses often create a contract with clear terms outlining the agreement for both parties. Companies from different industries or markets benefit from gaining the attention of another consumer group.

CONCLUSION

Business intelligence including the technologies, processes, and applications needed to provide complete data to enable productive decisions by managers is one area explored by business organization to overcome the challenges of sustaining growth and development. Thus is believed that adopted the strategies outline above the any business organization can sustain growth and development.

REFERENCES

1. Crals, E., and Vereeck, L. (2004). Sustainable Entrepreneurship in SMEs. Theory and Practice. Research Gate Journals. Retrieved from https://www.researchgate.net
2. Erhum, M.O. (2015). A Sustainable Approach to Economic Development in Nigeria. A Legal Perspective. Journal of Economic and Sustainable Development 6(14); 1-6.
3. Okpara, J. O. (2011). Factors constraining the growth and survival of SME in Nigeria: Implications for poverty alleviation. Management Research Review, 34, 156-171. doi:10.1108/01409171111102786