Before we even get into the reasons why business owners should aim for organic growth in their business, we should perhaps fist explore exactly what organic growth is. Organic growth in any business is simply growth which is dictated to by the market, in other words you expand into a certain direction based on what the market indicates to be in demand.

growth

So if you have a business such as Facebook for instance, which started out as website and a company right off the bat it must be said, they’ve gone beyond growing organically and are branching out into many other ventures which have nothing really to do with their core business. The likes of Facebook is a proper corporate behemoth though and somewhat of an exception to the general rule, but by mere virtue of its size and prospects for the future, a company like Facebook can afford to pour millions and even billions into many ventures that aren’t part of their organic, core business structure.

For the small-to-medium enterprise owner however, it’s best to aim for organic growth, for a number of reasons.

Better Chance of Establishing Yourself as an Authority

As you might be well aware of, in today’s world the business realms give off rather mixed signals with regards to the best approach to your business dealings. On the one hand it’s good to be dynamic and diversify as much as possible to protect your business against stagnation and perhaps being stuck with one product or service that could very well become redundant at any time. On the other hand the market tends to reward specialist-level production and delivery of services. Just as is the case with the Facebook example though, it’s okay to diversify as a hedge against going stale and perhaps even going out of business as a result of this stagnation, but you should master your core offering and establish yourself and your business as an authority in that one core market before you diversify.

Authoritative figures in the business world are often called upon to earn what I like to refer to as easy money, through a consultancy or advisory role. You can only consult or advise if you’re an authority in your field.

Hedge against Going Out of Business

Taking into account the consideration of diversifying as a means through which to hedge against your core offering becoming stagnant and thus causing you to go out of business, it may seem a bit counter-productive reverting back to this focus on your core offering to try and achieve the same outcome. It goes back to mastering your core business to such an extent that reverting to your core business will never have you going out of business. If you take a software company like Cellular Solutions into account, for example, their Sage Bom (bill of material) module is a popular solution used by many companies in industries like manufacturing, but those same companies perhaps started out using Cellular Solutions’ core manufacturing software to consolidate their core operations.

If things were to go a little pear-shaped and there was a need to cut back on costs, perhaps the bill of material bit of proceedings will take little backseat for a little while, but never the core of the business because that’s where the organic growth lies.

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