Is business growth always good? And why do all businesses chase it?

All businesses want to grow, preferably quickly. But is all business growth good for the organization?

First, let's define what business growth strategies your small business might face.

Organic growth is best described as growth that is achieved through internal efforts and that results in increased sales, profits and business metrics. (To recognize your improvements in these areas you need to measure business performance, track areas of strength and weaknesses, and plan for continuous improvement.)

Inorganic growth is growth through mergers (such as horizontal or vertical mergers), acquisitions and take-overs, in other words growing through activities external to the company.

Inorganic growth can be a faster, although often a more expensive, route to growth. Growing inorganically is most effectively used if your business needs to quickly enter a new market or ‘buy’ an accelerated product development or market position.

Fast growth is not always a good thing, even though most businesses want it (be careful what you wish for).

Particularly if growing is too challenging from a manageability perspective. No matter what type of growth you choose, make sure that your strategic business plan addresses growth challenges and opportunities by choosing from a selection of strong decision making tips and problem solving techniques.

For example, if acquiring, merging or being taken-over, your strategic plan will need to address significant change issues and cultural issues. Which employees go; which stay? What systems and practices are kept; what are blended?

Can a fast growing business keep pace with its growth?

You will need to focus on decisions to be made that will sustain your business while it grows. These are just a few: Hiring and training staff. Having enough staff for the peaks, as well as the valleys. Having productive equipment to handle increased volume (no down time allowed). Having enough incoming phone lines (and people to answer them). What's the right inventory level for a fast growing business? What's the right amount of cash to fund your fast growth (as well as enough cash to fund necessary capital investments)? And more.

Businesses that grow organically are a good measure of the health of the existing business and are a good measure of how well the business is managed. Organic growth requires using your strategic plan checklist to build a strategic business plan, and through the use of strategic tactics and action plans you will develop excellent execution outcomes.

From a small business perspective, owners often feel that growth is good and fast growth is even better. But business growth needs to be continuous and sustainable.

Too much growth, too fast can cripple your company. Your company’s growth rather than customer satisfaction becomes the focus. Your company’s culture often can't grow as quickly as sales or profits or increased staff grows.

Effective leaders recognize that sustainable business growth requires a strong management focus that is aligned with the small business plan and goals.

Don’t be diverted from your business goals by "fast and easy" growth – all growth will cost you something and for a small business that cost might be more than you can afford. This is particularly true when opening a small business; the startup stage. Plan your business growth strategy to fit your business today and into the future and to fit your business life cycle.

From a management perspective, a company with 5 employees is a whole lot different than a company with 20 or 30 employees. When do you start building policies, practices, job descriptions, organizational structure? And how do you build growth strategies into the company's strategy?

Depending on your business and your plans for the future, either organic or inorganic (or both) growth can be good operating models. However make sure that you plan for your growth.

Do not operate in an environment or organization where growth is happening TO you and all you can do is react, rather than manage it.

Keep your focus on your strategic business plan and you will be more successful at managing to the plan.

Return from Business Growth to Managing.

Or Return From Business Growth to More-For-Small-Business.