MANAGING GROWING VENTURE - GROUP 9

CAMUS | ESCAÑO | MARTINEZ | ZAMUDIO

Introduction
In this time of pandemic, many people undergo a lot of trouble in terms of jobs and businesses
so people ventured on so many ways and platforms in order to survive. Taking risks is the most
effective way to know if a business will work or not.

Business Growth is a stage where the business reaches the point for expansion and seeks
additional options to generate more profit. Business growth is a function of the business
lifecycle, industry growth trends, and the owners desire for equity value creation. Business
growth will be experienced if you already have a lot of sales and you need to expand your
business for a bigger profit. And now, in every corner you will see growing ventures that proves
that when you start a small business, have patience and aim for success.

Then the four (4) primary types of growth a business can experience include strategic, internal,
organic, and lastly- partnership, acquisition, or merger growth. Learning more about each of
these four (4) types of growth can help business strategy efforts be more successful and
organized.

Strategies/Ways to Manage Growing Ventures

1. Set Growth Objectives

- Defining your goals will steer your efforts toward the types that matter to you.
- Use milestones to determine whether you are on track.
- Take into account what it will take to meet objectives.

2. Have a Medium-Term Goal and Roll With It

- Medium-term goals are often forgotten.
- Series of medium-term objectives supports long-term vision.

3. Tighten Your Hiring Process

- Organizations do not grow by themselves. The people within your company will
be responsible for its growth.
- Hire the right employees who can see your vision.
- Bad fits may slow down growth.

4. Consider Financial Implications

- Saving and spending are both vital when it comes to managing growing
ventures.
- Business debt is important to companies, but too much debt can cause missed
growth opportunities and overpay on interests.

5. Take Care of Customers

 - You won’t get anywhere without a sizable customer base.
- Give your customers your ear.

6. Find a Great Mentor

- You have the benefit of their experiences and the advice of someone who has
been there before.
- Do not let your ego or pride get in the way.

Importance

Growth is crucial to the long-term survival of a business. Growth can be good for business for
many different reasons.

For example, it may allow you to:

● Take advantage of new opportunities
● Expand your products or services
● Attract more customers
● Increase sales
● Employ more staff

It may also help you to respond to market demand, increase your market share and capitalize on
your growing brand. It often spurs innovation, helping you to differentiate in the market and stave off
competition.

Why is it important?

1. Survival

Start-up companies must grow by finding the first few customers and developing the first few
products.

2. Increase in sales

Businesses grow by selling more products, either by selling more to existing customers, or
finding new customers.

3. Increase in market share

An increase in market share results from business growth. With the increase in market share,
the company will gain higher profile and more market power.

4. Greater power to control the market

Industry leaders have much greater power to control and influence market activities than smaller
businesses.

5. Increase in profits
Expanding businesses and achieving higher sales is one of the ways of becoming more
profitable.

6. Economies of scale

As a business grows in size, it usually benefits from reduced Average Cost (AC) of production
as a result of economies of scale, e.g. lowering the cost of purchasing raw materials by buying
in large quantities.

7. Protection from the risk of takeover

Public limited companies are often at risk of hostile takeovers – buying a majority stake in the
business, because they have growth potential, have a widely recognized corporate name or due
to a decrease in profits and subsequent fall in their share price.

8. Increased status and recognition

Controlling a large and well-known business gives the owners and directors higher status and
wider recognition in the society.

9. Spreading risk

Diversifying into new markets rather than focusing only on one specific market, as well as
creating new products rather than just focusing only on one product, will help the business to
grow.