Expand where it makes sense. Diversify, but do not dilute.
There are many different strategies that a company will pursue in order to achieve its business growth goals. These strategies might be: to expand on or add a new array of strengths, to explore unique territories, to strengthen competitive advantages, to explore untapped potential or brand licensing only to name a few.
Appropriate planning is necessary in order to make the correct move and without it, there can be major risks associated. These risks can include failing to realize the full potential of the core business, diversifying too far and too quickly and not redefining your core competencies once the growth has started. In addition to not planning a strategy appropriately are all these threats that are associated with not developing an approach for long-term growth.
Immediate growth can be very satisfying, but growth itself will peter out over time unless there is an effective and competitive long-term growth plan in place. The search for growth should not be at the expense of focus or relevance because a lack of either is potentially disastrous. It is imperative to have a deep-rooted understanding of which type of growth is best suited for your individual company.
The vast majority of growth, especially in time of pandemics, comes from competing in the right markets and from making acquisitions that provide scale and increase market presence that will last over time. With a true understanding of the business comes the ability to step out of your comfort zone and seek new yet appropriate growth opportunities.
You are thinking about growing your business! Here are four key points to consider: Understand yourself as a company and thrive off of what you are good at; have a plan to grow for now and for the future; expand where it makes sense, diversify, but do not dilute and strive to be a part of something bigger.
Michel Ouellette JMD, ll.l., ll.m. Systemic Strategic Planning / Crisis & Reputation Management