When an enterprise intends to grow—in sales, market share, or new products—it needs a growth strategy.
One growth method expands company operations. Operations flourish via diversification or increasing current capacity. For diversification, you’ll need workers with varying skills. Alternatively, a company can increase its capacity by expanding existing products or services. Growth may require adding a second or third shift of workers to support increased orders or contracts. Whether you grow your products or diversify, both strategies often require hiring additional personnel.
The company may also expand into a new geographical market area. Marketing efforts add new channels of distribution or change current advertising or promotions.
A company can increase its commerce by improving products or creating new ones. Both methods fall under the category of product development. The company can design different quality versions of a product or additional models to suit various customer preferences and price points. If your company provides a service rather than a product, expand what you offer. Hire bilingual employees. Offer assistance filing for VA benefits. Think outside the box to broaden what your company provides.
Some companies also pursue horizontal integration. This process occurs when a firm purchases (or starts) a new firm and combines the companies. There are multiple benefits to this approach. One method reduces or eliminates competition. Another strategy achieves economies of scale by minimizing costs while increasing production. A third method shares common resource pools in product development to reduce the price per unit.
On the other hand, vertical integration involves backward and forward changes. Backward changes affect your supply chain. For instance, a company may purchase the business that supplies components of its products or services. Forward integration uses downstream resources to streamline delivery. Mergers are an example of this strategy.
Depending on your team’s current size and ultimate growth objective, you may need to hire new employees. It’s important to hire talented individuals who are motivated by your organization’s value proposition. After all, motivated workers will usually work harder and feel more invested in the business.