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What is organic growth?
You’ve started your own business – now how will you make money?
There are many ways to expedite the growth of your company. You can pay for outside agencies to market your product or service or set up cross-promotional plans with other businesses. But there are also ways to kick-start organic growth at your company, which is often the most natural and effective method.
What is organic growth?
Organic growth is the rate a company can grow by increasing their sales internally. This strategy maximizes growth from within, targeting the company’s in-house processes as a means to drive growth and revenue.
When you have organic growth, business processes and brand are usually aligned in a way that makes success much more achievable.
There are a few ways to achieve organic growth in business like training your sales team, implementing new customer service techniques or offering a new and improved service or product. Here’s what you should know if you’re trying to bolster your growth as a business organically.
Don’t focus on bringing in tons of new customers
When you hear the word “grow” in business, you might also be thinking about the word “sell.” Your first instinct could be to bring in tons of new customers or create an entirely new product to become a disruptor in the industry. However, in most cases, that’s not a sustainable way to grow. Instead, think about the customers you already have connections with. Could you be selling them additional services? Would offering a package deal on your existing services make this more possible? When you do bring on new clients, don’t think of it as a huge process. You don’t need to bring on 60% more clients – you probably need to bring on 15% more clients who are purchasing a larger amount of goods to achieve organic growth.
Know your clients’ needs
The key to organic growth is knowing your clients’ lifestyle and needs. First, ask yourself, “What business am I really in?” For instance, think of Blockbuster. The now defunct video rental company thought they were in the business of providing movies, but really, they should have viewed themselves as providers of entertainment. When Netflix opened, Blockbuster was unable to anticipate the changing needs of their customers. Although Blockbuster had developed a huge following, they didn’t continue to think of the organic growth business advantages that would best serve their clientele.
Be able to provide value
The lesson? Provide value to your main demographic to create customer loyalty and ensure organic growth. Netflix was able to completely wipe out Blockbuster because they saw the value in customers being able to receive movies at home. They then went on to refine their offerings, changing from a mail-in service to streaming, and continue to anticipate the growing needs of customers. Now with their own production team, Netflix creates innovative movies and shows that touch on current hot topics. Ask yourself, how does your company add value to the lives of its customers? What can you do to make the lives of your target audience simpler? How can you take your product or service from the level it’s at to the next iteration? That’s the true key to organic growth.
Strategies for organic growth
Now that you know what organic growth is and why it’s important, let’s look at some strategies you can implement to increase yours.
Focus on a niche
For steady organic growth, you really need to know your customers and/or clients. That’s where developing a niche comes in. It’s much easier to get to know your customers when they share many of the same characteristics. It’s more difficult when they’re all over the board because you’re trying to be everything to everyone. As you hone in on your niche, try to make sure you choose one that is a combination of something you’re passionate about, as well as one that is profitable. This combination will make your work enjoyable as well as successful.
Make sure you have a differentiator
Those businesses that achieve organic growth have found something that sets them apart from their competition: a differentiator. A differentiator is necessary to stand out and make your mark on the industry. You could offer a product with a feature that no one else has or you could have a normal service that is conducted with your own unique flair. Whatever it is, it has to add value.
Showcase your expertise
You are an expert in your niche industry, right? Otherwise, you would not have gone into business for yourself. Organic growth is reliant upon you sharing that expertise with as many potential customers as possible. You can do this through social media, on your blog or in person by conducting seminars or workshops. Once your audience recognizes you as an expert, organic growth will naturally follow.
Pursuing organic growth in business is all about looking inside your company. Ask yourself these questions: How am I finding and treating my customers? What are we offering, and how does it cater to the needs of our target audience? Then implement one or more of the suggested strategies and watch as your business takes off.