Every business owner has growth aspirations in mind. Imagine owning an empire within a certain period, it feels nice, right? That is what we have seen in many businesses in different sectors across different parts of the world. We see from publications, television, social media, and other channels of communication about growth in business that companies register during their financial periods.
Surprisingly, despite the reported growths, we hear some of them close doors, make losses, and face lawsuit cases, among other issues. This brings the question, do businesses have quality growth or they are simply growing to impress some stakeholders?
According to Social Development Goals, quality growth in business has three dimensions, that is social, economic, and environmental. You should ask yourself whether your business growth meets all the dimensions. To break the dimensions further, below are the five key determinants:
- Inclusiveness about environmental, social, and economic benefits
- Efficiency and productivity of use of natural, human, and manufactured capital
- Structural transformation that promotes social and economic values
- Balanced investment in all forms of capital
- Limits in the economic, social, and environmental spheres that are defined by a credible science, a strong science-policy interface, and stakeholder dialogue.
Following this, leaders and managers should adopt at the very least a quality growth strategy and path that sets the direction for the businesses. But what keeps most business leaders in the dark about quality growth is the lack of what is needed that guide this. To help with that, I have listed ingredients below that help businesses establish long-term growth:
Strategic focus
Strategic focus is a key element when setting the tone for quality growth in business. A company that has a strategic focus is clear in its mission, and vision and has a well-articulated strategy to achieving those. Many businesses have missions and visions that are placed somewhere visible within the business premises. Some companies do not have a clear strategy to achieve the laid down agenda for the business. Beyond written missions and vision is a mere boardroom that discusses other irrelevant things, executes what takes business in another direction, and at the very worst is a company that takes no action at all for growth.
When business leaders inspire focus to the rest of the team, that is when the wheel starts to rotate. For that to happen, there should be visionary leadership that sees beyond numbers, transactions, and day-to-day events. Culture is very crucial here it enables mentoring people and creates environments where staff become focused towards the common goal.
Having the right people on board
This ingredient should have come first. The importance of the right people on the bus cannot be overemphasized. This is affirmed by the words of Jim Collins in his book Good to Great that builders of great companies understand that the goal for any great company is not markets, technology, competition, or products. It is the ability to get and keep enough of the right people.
But you may wonder, how do you get the right people? Can’t all people be the same? Well, an organization that eyes on growth would hire two types of people i.e “plow horses” and “racehorses.”
Plow hoses are those people whom you can count on to deliver routine tasks without failure and racehorses are those who set the direction for the business. They are both important in driving quality growth for the business.
Proper marketing
Proper marketing for quality growth in business is about tangible results. While in the ordinary sense, it is about initiatives that drive sales, it is higher than retaining customers, gaining market popularity, getting quality leads, popularizing new products, and much more. To achieve that, it requires leaders should have precise plans and well-executed strategies. With the changes in the market that result from changing customer choices, competition, and market regulations, strategies need to be revised from time to time to meet those changes.
Sound financial statements
The result of every strategy, action, and plan for any business is seen in numbers. When financial statements do not show any progress then there is every need to revise steps. Quality growth in business should be measured and communicated to stakeholders and the results shall speak more than the plans.
Good customer care
Good customer care is the backbone of quality growth in business. No business can germinate where there is no customer. When a customer is satisfied with the product or services you offer, you can easily grow given the feedback you will receive for improvement. Beyond feedback, is loyalty. To earn that from customers requires services and attention beyond expectations. Once you get loyal customers, they can be your ambassadors and even help build your brand.
Advanced technology
A modern business that does not impress technological advances is simply on the road to failure. Technology is part and parcel of any organization that has witnessed growth. Technology comes with mass benefits that aid the business in achieving efficiency. Do not think that technology must be machines only. No, technology can even be the simplest innovative way of doing things in a better way. It’s through these that your company can achieve quality and sustainable growth.
Cost management from an innovation perspective
When all is said and done, companies need to manage costs. The cost of doing business can drain the company’s profits thus hampering its growth potential. For the company to meet quality growth criteria, it must create value through cost efficiency. This is a paramount aspect particularly when seeking partnerships with investors. When confronting costs issues in your organization, do not think at first of cutting down straight away. Instead, invite or look for ways through innovation that can reduce the amounts significantly.
In a nutshell, entrepreneurs need to look beyond the obvious growth in their businesses. Instead, they should ensure that quality growth in business is part of their journey. With that, comes stability and admiration from customers, governments, regulatory bodies, and even investors. When you attract all these stakeholders, you have no reason to miss a good market share in your offerings.
