The term “organic growth” is bandied around a lot in business circles. What does it mean exactly? To put it simply, an enterprise that expands and grows from the results of their own labour, endeavour and ingenuity can be considered organic.
By increasing your output through a natural course of events that requires no external help or influence, this concept is seen very much in a positive light. The only downside to this development is the need to have patience, something that can see owners and operators embrace the inorganic route as an alternative.
However, rather than attempt to find the quick fix, there is incredible value when it comes to organic growth for a company. Here we will outline why that is the case.
Greater Long-Term Viability
Should you wish your enterprise to have a strong presence in the market for decades to come, then that platform will have to be built from the ground up. You will need infrastructure, property, assets and a knowledge base that is the envy of your competitors. These are aspects that cannot be bought out or acquired overnight should you seek control over this enterprise. The organic route is the choice of the long-term visionary.
Business owners who opt for the inorganic method attempt to shortcut the steps needed to expand by artificially crafting their own momentum. From business acquisitions to takeovers and major loans, these are moves that come inherent with a great deal of risk involved. It can project and assume how the market will operate into the future and this is a dangerous game to play.
Provides Evidence For Further Growth
Seeing the metrics rise for sales, revenues and the introduction of new products gives you an internal case study to understanding how you achieved growth. When you pitch meetings and open dialogue with potential investors and partners moving forward, you have evidence to outline just how viable your enterprise is.
Makes You An Authority On The Consumer Profile
Experience of organic growth should not be underestimated when taking a step back and examining the process from start to finish. By crafting a plan that incorporates a consumer base that is interested in a product or service, you are able to understand and interpret data on digital habits and demographics that includes age, gender, location and overall interests. Businesses that attempt to score big through inorganic growth do not enjoy that same learning curve and are poorer because of it.