ORGANIC GROWTH
Organic growth is an internal way for a company to grow. It can be achieved in several ways but the most commonly used strategies are maximizing output and sales. This growth doesn’t take profits and integration in to account as it only considers the factors that affect the internal growth rate of a company. This may seem like an easy task to achieve but considering the several variables that affect the internal growth, the process can be rather challenging. It is believed that organic growth is a key to companies’ futures. The best firms follow more than one track to achieve it and are also better at developing the right competencies to support it.
As there isn’t a single way of attaining the growth rate a company aims to achieve, a blend of distinct techniques is used to aid organic growth. A diversified approach is the way to go as no one size fits all. A company should pick and choose which ever strategy works best for them. Companies in developed economies vs emerging economies would react differently to the same strategy. Even companies within the same market may react differently to same strategy. Therefore, the significance of consultation cannot be undermined while making such decisions.
When a company decides to use a single or multiple strategies, the three main components that go into the execution are investing, creating and performing. Reflecting and applying past strategies that helped in achieving organic growth can be used again. It involves investing in existing products and services as well as any commercial activities that enhanced the output of such an investment. Creating new products or services is another way to boost growth rates but whether or not a company should take this route depends on the accuracy of market information and consultancy. The third way to help boost organic growth rate is by performing better on core commercial capabilities.
The efficient use of digital tools also need to be incorporated in the process as well as the organizational culture of the company. Branding and customer input plays a pivotal role in defining organizational processes which more often than not result in the hiking of sales figure which is a major driver of growth rate. Reliance on accurate data and insights from qualified consultants is the way to achieve sustainable growth rate. At Ali Syed CPA, we not only assist you with statistical inputs but we also amalgamate tailored strategies to help a company achieve their desired growth rate.