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Growing Businesses

‘The Key To growing business Is Confidence’

Fundamental beliefs
A company may operate in a defined business space based on the vision, objectives and goals of the owner and the business leader. Hence there is business space where the company may like to occupy and follow a methodology which its hopes is the possibly best way to succeed. Within the definition, somewhere is also built in the rule of behaviour, hierarchy, responsibility and decision making. These may be explicit or implicit. In most cases, the options of growth the company may choose are also defined in the fundamental beliefs.

Internal Transformation
In positioning or reposition of the company and to be able to work based on fundamental beliefs, it becomes important that we understand that internal transformation may be necessary. How to go about the internal transformation then is the method that becomes important. This internal transformation could range from accepting a new idea to complete change of the configuration of the built business. For now we shall focus on the re configuration necessary for the growth planned by the company. These transformation may touch the product, its manufacture and design, platform, product line, services, channel relationships, customer relationships, processes, or the margins as well.

Moving in the value chain
Having built the business and successes in one part of the offering within the value chain, the most attractive options looks like moving up or down the value chain, where the company perceives that could add more value or help build synergies. This is seen across the industries and from both the sides of the value chain.

Access to new geographies
Success in one geography give one the confidence to look at the other possible target markets. On the other hand , not having succeeded in a specific market could also be the reason when one starts broadening the geographic base to reach out to the customer. Logistics becomes more important as also the understanding of the parameters which make success more likely. It may start with the understanding of the customer, the tax and legal requirements, ware house , logistics, and business travel. The means and methods of promotion and reach also contribute to the possible access and success.

Configuration of changing business landscape
The constituent elements in the market, either representing Michael Porter’s 5 economic forces for sustained competitive advantage or understanding these forces reasonable independently as well form the configuration for the business at a point in time. The decisions on the supply chain, customers, margins compel the participating individuals and organizations to change they did business. Technology, policies, treaties, social, economic, geo political relationships all may impact the landscape for longer term or forever.

Do alliances matter?
They may, especially when scaling up needs resources and time which may not be at the disposal of the company. Reasonable amounts of innovations are possible in the space. However the trend to go for alliance is more when the industry structure is relatively new and hence there is a distinct divide where alliance formation takes more time or when the alliance formation moves with agility. Alliance formation does need looking at some common goal and an element of trust to help it succeed. Rapid development or the need to develop technology rapidly may also force the companies to look at the alliances. Standardization and hence focussing larger money on specific objectives are also the catalyst. Growth may be possible due to alliances. They allow for new ideas, wider reach, more capital and the validations. The new business configurations prefer alliances but at the same time defining the rules which allow the formation of alliance in short time as well.

Joint ventures, understanding in the revenue sharing and by offering complementary set of competencies may allow the JV’s work towards growth. Hence, the strategic intent for the two companies and fair dealing on part of the partners is required for their longer life.

Imperatives of growth
Growth of the employees, the requirement of taking care of building up robustness, in the product, channels, network, and even value necessitate growth. Growth also becomes a measure of the success as a validation of the offering so far, ability of the management to create a company that grows and also to create better returns for the shareholders. Fending off competition, brand building and sustenance make growth the imperative. Companies can’t relax in the market place since the market itself does not relax and continues to evolve.

Are you ready for growth?
Having established the needs and the framework , the confidence to make it happen is still required to say “ we are ready for growth”. It won’t happen unless the team leading is serious in the intent. Action must follow the words and you may take the leap.

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