RDA Blog

What growth options should you consider for your business?

Written by Paul Redmond | February 10, 2021

Business owners tend to approach business growth with care and rightly so. It is essential to examine your operations closely, weigh out all your options and decide on a growth strategy that’s right for your particular situation and aspirations. It doesn’t end there though – while you’re pursuing your growth plan, you will need to continuously review and reflect on your progress and make further decisions on growth accordingly.

Businesses of any size should be able to tackle business growth; the important thing is to lay the necessary groundwork and build a solid business strategy. RDA Accountants can help you pursue your preferred growth strategy, whether you’re considering organic or inorganic business growth models or a combination of the two.

Organic growth, also known as internal growth, is achieved through:

  • Improving marketing and sales effectiveness
  • Launching new products/services
  • Investing in existing products/services
  • Reducing costs
  • Improving operational efficiency
  • Improving customer experience
  • Raising brand awareness
  • Entering new industries
  • Finding new business models

What to consider before organic growth:

  • It’s financed through existing funds
  • It allows you to stay in control
  • It builds on existing resources and strengths
  • Its growth rate is slow but sustainable
  • It tends to require a creative approach to keep the company’s competitive edge

Inorganic growth, also known as external growth, is achieved through:

  • Acquisitions
  • Horizontal mergers
  • Vertical mergers
  • Partnerships
  • Joint ventures

What to consider before inorganic growth:

  • It’s financed through external funds
  • Immediate increase in market share
  • Increase in resources
  • It comes with significant upfront costs
  • It often requires company restructuring
  • The growth rate is rapid

As business growth advisors, RDA will stand by your side during your growth spurt, helping you ask the right questions to track the success of your growth plan and make necessary adjustments along the way.

If you need help in growing your business;