For starting businesses, it might be difficult to raise money and expand. It is expensive to scatter all your resources on different platforms. A workaround is to concentrate your efforts on implementing small projects. Organic growth is the best way to grow. This article will show you how to grow a business organically.
Growth for bigger companies means merging and acquisition. But capital is one resource that small and medium scale businesses don’t have a lot of. That’s why what works for big companies doesn’t work on small ones.
Organic growth is the best way to grow the business without raising a considerable capital.
So if you’re a business owner looking on how to expand your business to the next phase, tune in. Today you’ll learn how to grow a business organically.
What Is Organic Growth
There are two modes to expand a business. Inorganic growth and organic growth. Inorganic growth is associated with strategies that need upfront investments. Mergers, acquisitions, running paid ad campaigns, and so on.
On the other hand, organic growth expands business by increasing output. Meaning, customer base expansion, marketing campaigns that need more effort, and so on. Doing it all with little to no upfront investment.
Why Is Organic Growth Important
Scaling a business sometimes requires huge capital to succeed. Although possible, small and medium sized businesses don’t have much to invest. They don’t have a big stash of capital on hand.
Often, businesses die because they’re not making enough cash flow or they can’t grow it. In the end, they lack the financial stability to let the business stay afloat.
The alternative is optimizing company resources to produce output and reach ROI faster. This is where organic growth comes in.
Especially for a startup business, they have to prove that their ideas can make money. So they have to utilize all the resources to get as much returns as they can produce from organic growth.
Once you have a proof of concept, the next logical thing to do is to grow it. And if you don’t have enough funds, organic growth is the way to go. It provides a sustainable option to continue with the business.
How To Grow A Business Organically
As I shared earlier, organic growth has three components: increased output, serving a wider customer base, and rolling out new products.
But how can you improve your output when you don’t have enough resources? Quick answer: boost your productivity.
Pareto Principle states that roughly 80% of the effects come from 20% of the causes. In your business, 20% of your clients contribute to 80% of your profit. Evaluate the input that produces 80% of your output. Then continue improving them so it yields more results.
Since you’re bootstrapping, knowing the critical few that brings results is a must. Why? Because it’s the one giving you exponential success. Focusing on those will make sure you’re using your time wisely.
Before a business can serve more people, it must make sure that its process is improved to increase output. But if you are alone in your business journey, how can you serve more people? Increasing output can be achieved through outsourcing, hiring talent, and automation.
If you juggle several responsibilities in your company, you’re not being as effective as you should be. It’s time to start outsourcing help.
The best use of your time is doing what you are good at and what your company needs. As a business owner, that means marketing, selling, and focusing on your vision.
Relieving yourself from the different responsibilities of your business will also give you time to produce new products for your audience.
Customer Base Expansion
The more problems you solve, the more money you make. Now that you have built your capacity to produce more output, you can now serve more customers better.
This is where marketing comes into play. In this digital age, it is now easier to introduce your product in front of people. If you are a brick and mortar business, set up your Facebook page to reach more eyeballs.
There are many methods of reaching more customers, like ads. But you can also reach more customers organically. These can be done through SEO, social media, e-mail, and content marketing.
As with everything, organic reach is at a slower pace. But the key to reaching these new customers who don’t know you yet is creating relevant content.
Growing a business online is not a straightforward path. But if you hire talent that can help you accommodate your expanding customer base, you can increase your profits.
New Product Development
There is no perfect product. This is why you need to know your customers well. Once you know their problems and needs, you can develop new products to help them. That’s what businesses are all about.
Now that you have more time on your hands, you can better use that time to think of new products. Or thinking of new solutions to your customer’s problems. This way, you can rest assured that you’re serving your market better.
Final Thoughts On How To Grow A Business Organically
Building a business from the ground up is hard work. But scaling your business to the next phase requires you to be smarter. By growing a business organically, you are ahead of the curve. You optimize the steps so that you can maximize profit using fewer resources.
Have more ideas on how to grow a business organically? Share them below!