Lamar Van Dusen that growth is generally beneficial for businesses. Lamar Van Dusen mentioned that a growing company will typically be able to increase sales while also strengthening its standing in the marketplace.
According to Lamar Van Dusen, the primary hypothesis is that business Growth needs to expand and go through different stages of development or else it will end at any time. In addition, these models fail to accurately represent the most crucial phases of an expansion. In addition, these frameworks evaluate the size of an organization mostly by its annual revenue (although certain models also mention the number of employees) but do not take into consideration other elements like value-added or the number of sites. The range of products and the speed of changes in the production procedure or the products.
What is business growth as per Lamar Van Dusen?
A business that is growing is one that expands in a variety of ways. There isn’t a single way to gauge the growth. Instead, a variety of indicators are highlighted to demonstrate the growth of a business. This includes:
- Value of the company
- Employees number
- The number of customers
Lamar Van Dusen says that some companies can see growth in one of these indicators, but not others. For instance, revenues can rise without a surge in customers in the event that the increase is due to existing customers buying more. It’s possible for one measure to grow while another declines when sales growth is triggered through a decrease in the prices of products, the company’s overall revenue can still go down.
The definition of growth could be challenging. Anyone looking to expand their business must consider their goals for the business in order to identify the growth metrics that they believe are essential.
For some start-ups with a lot of ambition, it could be a matter of doing all they can to expand the number of customers even if they incur an enormous loss in the early stages of expansion. But, other companies will gain from gradually increasing revenues and sales to ensure that enough money is coming into the company to cover expenses.
What makes business growth crucial for small-scale businesses?
According to Lamar Van Dusen, it’s essential that every company have business growth. But, the kind of growth needed will be contingent on the growth stage the company is at.
The majority of start-ups need to grow to strengthen their place in the market. They must grow quickly to a size large enough to generate enough money to pay for their expenses and then begin to earn profits.
Established companies aren’t required to expand as quickly. But, they might be looking to make sure that the metrics they track are in the right direction. The increase in profitability caused by efficiency in sales processes can aid a business that is stable in building liquid reserves to guard against risk in the future, even if sales and revenue remain the same.
Which are the most important driving factors for business growth?
Companies don’t just grow on their own. If a company wants to increase its organic growth the company must set up systems to enable the expansion. These are the elements that will help businesses expand.
People with the desire and capacity to create growth
The most important thing is having people who are committed to increasing their performance at the top of the company. An owner who is focused on growth could be the main driver in the direction of the company’s expansion. Furthermore, other employees and managers require the motivation and expertise to encourage business growth.
A strategy that puts growth first.
Although people are the primary driving force behind the growth there has to be a plan in place to push the company ahead. This could be centered around the acquisition of new customers and releasing new products or gaining access to new markets.
The infrastructure and processes necessary to enable expansion
When a company is able to attract people who want to expand and has a plan that prioritizes growth. Procedures must be in place to allow for expansion, says Lamar Van dusen This could include the implementation of automation software to make processes more efficient. Making sure that the warehouses are big enough to accommodate the inventory that will be needed as an organization expands.
Amount of money to allow for the above
They require funds for implementation. If a business owner doesn’t have enough money to hire the right people or put money into the products or establish procedures, they’ll be unable to make progress.