Making Your

Business Grow
By Michael Woldeslassie

What is Business Growth?

To make changes that result in greater sales.
Businesses Grow in 2 Ways:
Organic Growth: Growth achieved by
expanding a business internally(adding new
products).
External Growth: Growth achieved by adding a
new business or merging with them.

Deciding When To Grow

Condition of the Business
When it has a solid base of customers
Doesnt struggle with day to day demands

Economic Climate
Know economic conditions at the local, national, and even global market

Life Goals of the Business Owner

Schedule growth with your life goals on demand

Product Life Cycles

Stages
Introduction- When a product is introduced, the marketing effort is devoted
to building product awareness. Making consumers aware of the product is
an expensive phase & profits may be low at first.
Growth- Sales and profit increase steadily as the product is embraced by
consumers.
Maturity- Stage where sales & profit stop growing. The business may have
to lower prices or enhance the product to extend its life.
Decline- Product sales and profits fall steeply and dont recover. The
product starts to lose appeal to the consumers due to technological
advances or governmental regulations.

Growth Strategies
Intensive Growth Strategy
Growth strategy that focuses on cultivating new products or new markets
or both.
-Doing more of what your good at doing
Market Penetration is an intensive growth strategy that emphasizes more
intensive marketing of existing products.
-Sell more to existing customers and sell to new customers in existing
markes.

Integrative Growth Strategy

A growth strategy that emphasizes blending businesses together through
acquisitions and mergers.

Diversification Growth Strategies

Core Business- The most important focus of the business.
Diverstification Growth stratedgy- When a business grows by offering
products or services different than the core business.