Six of the best ways to grow a business
In the second blog of our business growth series, partner Damian Walmsley lists six of the most popular ways of growing a business.
1. Open in other locations
Physical expansion is the most direct way to grow, although it requires careful research and planning. Before going down this route, ensure you have adequate funds in place and your business model is both robust and transportable.
2. Acquisitive growth
Buying other companies is a great way to build a business quickly, but acquisition finance is not easy to come by. Fund providers want to see compelling evidence of a successful track record. Integrating an acquisition is also a challenging process if the deal is to generate value.
3. Organic growth
Organic or internal expansion can be generated by upskilling your people and creating new marketing channels, as well as innovating fresh products and services. You can also improve your bottom line by delivering higher service levels to underpin customer loyalty, while greater staff retention will create a motivated and productive workforce.
4. License your product
This can be an effective, low-cost growth driver for businesses with a strong brand. Licensing means you can receive upfront revenue for continued sales. It is, however, essential to take specialist legal advice on intellectual property rights to minimise the risk of losing control of your service or product.
5. Joint ventures
Teaming up with another business through a joint venture (JV) helps you access new markets, customers and a larger skills base. Most joint ventures are carried out by businesses offering complementary services or products – operationally or geographically.
6. Expand globally
As mentioned in our previous blog, exporting is a highly effective way of growing your business by selling into new markets. The government’s advisory organisation, UK Trade and Investment (UKTI) can access extensive global resources to help businesses to research overseas markets.