What is one reason you could give a business owner for why a business has to grow?
Don't explain, just list a thought... I did a training presentation recently on Creating Growth Mindsets for Business and started it with the question above. Avoiding cliches (grow or die), we brainstormed answers. There were so many but with such a great wealth of biz brains here, I thought it could be a great resource to Business Owners to have our community share 1 simple insight each on a briefly stated reason a business must plan/prepare/act to grow. (Please list 1, don't lecture) So many small business struggle with this, or struggle to give it meaning, I thought your thoughts could add inspiration...
Growing the business and the competition is fun,----It really is....
HI, Think about how important grows is not only to future relationship but if their isn't any current advancement to reflect on how do a business stay improvement towards satisfaction as a whole. It simply don't existed.
I don't think a business has to grow.
Let me explain.
Your use of 'Growth Mindset' harkens to the work of Carol Dweck, and certainly in people, a Growth Mindset is a strong underpinning for log term success, personal development, and achieving big goals.
But the usual meaning of growth in business terms is 'getting bigger' - more turnover, more profit, more staff, more success.
But for many people, stable lifestyle of plenty can be enough. The need for growth sometimes (yes, I said sometimes, before anyone accuses me f over-genralising) arises from greed - the need for more and a failure to recognise success... enough.
A business does not *need to grow. It needs to stay solvent, to treat its stakeholders with respect, and to act with integrity. There is no harm in one business growing... or one million.
But remember this, as businesses grow, they use more resources. At some point, if economies continue to grow, the resource utilisation will exceed the capacity of our finite planet to continue to meet the demand.
If our species successfully navigates some of the huge challenges facing us in the 21st century (many related to resources such as energy, water, and rare-earth metals) then weaning ourselves off growth, or finding new capacity beyond Earth are likely to be the challenges for our 22nd Century great great great grandchildren.
Not quite the answer you were after, I suspect.
It's personal! Growth is an objective indicator of success. Success breeds confidence and confidence breeds even more success...
It also depends on what kind of growth you are talking about. The main growth should be your bottom line or profit. The bigger your industry profit margin, the more you can grow. In many cases, growth can increase your overhead and operating costs. If a business doesn't have a good profit margin, they can't afford to grow.
1.there is no such think as a point of sustainable perfect equilibrium in a world with competition.
2. regardless of your objectives, its never a question IF you should grow, but HOW you should grow
Growth means change, not necessarily enlargement. I'm actually writing a client post now on the concept of "enough". A wise business owner grows in the direction of her vision in order to keep her service fresh, on point and viable, whether that means creating a venture that ultimately employs thousands ~ or remaining an imaginative sole proprietor.
Focusing on growth will lead you to the ultimate point of having a business. Generating a profit with or without your involvement.
If it doesn't grow, you likely are not sufficiently leveraging being an independent business owner ... and you might as well work for the man!
"Grow" means different objectives/strategies/tactics/things in Marketing. Customer needs and wants change. But simply to pay the employees.
There's a product lifecycle to everything. Think about "People" (segmentatation and targeting), Products, Place, Promotion, Presentation, and more in the 9P's of Marketing. Here to help.
The Goal of any business is to be an increasingly successful company which cannot be achieved without growth.
If you are not rowing there is something wrong with your business model.
Being engaged and intentional will lead to growth. So doing what is required to be sustainable, inevitably will cause growth.