4 Different Types of Business Growth
More recently, I’ve started consuming more research articles and case studies. Although, I thought I’d left the scholarly life behind me after achieving my psychology degree (go figure!) Kidding, sorta — I mean, I’m always learning something new just not so much through research papers LOL! But, I came across one recently called Pathways to entrepreneurial growth: The influence of management, marketing, and money” (complete article is here). What I took away from this article more than anything was … the different types of business growth.
4 Types of Business Growth
In this blog, we’ll touch about 4 different areas of growth. Before that however, have a look at the four different types and without reading ahead .. decide where your business is right now.
The 4 types are:
- Rapid Growth
- Incremental Growth
- Episodic Growth
- Plateau Growth
Companies with different circumstances operating in different industries and catering to different audiences do not grow in the same manner, at the same rate, or with the same outcomes. However companies, people, brands, etc. will at one point or another achieve at least 2 of the 4 types — any guesses?
Rapid Business Growth
In my opinion, I believe that many network marketing companies will experience some form of rapid growth. Ideally of course it’s through customer acquisition. This might also be referred to as momentum.
With explosive growth (which we’re not getting into today), there can be many obstacles from inventory to short staffed, shipping delays or manufacturing hiccups. When you are in the rapid growth or momentum phase it’s important to stay excited and remain patient.
Rapid business growth happens when the sweet spot has been met of matching a product or service in the right spot, to the market. Word of mouth and referrals are BIG time in this phase and should ALWAYS been acknowledged.
Rapid growth is awesome … but please don’t let it just become a spike in your business, retention is key.
Incremental Business Growth
This is the least likely seen in our amazing network marketing industry. This type of business growth was formed based on the idea that at one point or another they will;
- merge with another company or,
- hand over the reigns entirely
Now, although we have seen many successful mergers over the years — most companies in our industry don’t start out with that as their vision. This is far more common out of network marketing though, especially in the food world.
Episodic Business Growth
Leadership from the top down — MATTERS. The causes of episodic growth can be a lack of advanced management skills in just about every category; finance, marketing, or operations; difficulties within management teams having multiple objectives, conflicting visions, or outright issue; and an unfavorable business climate or economy.
This is often where you’ll encounter many ebbs and flows, changes you didn’t see coming, and quite frankly, having less and less belief in your company.
I want to add that every business goes through an episodic type phase however — stay plugged in, close with your leaders and up to date on the culture and climate. This, will help this type of business growth occur a little smoother and keep your finger on the pulse overall.
Plateau Business Growth
While most network marketers would say that faster growth is more desirable, the reality is that most companies do hit plateaus, often due to ineffective marketing, static or incorrect strategy, or uncontrollable economic factors.
Marketing is what I want to touch on briefly.
When I made a decision to shift away from actively building a network marketing business and focus on the people instead I had/have one primary vision: Impact. This impact for me, has come through showing network marketers how to use social media the RIGHT way.
Chances are if you’ve hit a plateau in your business it has everything to do with your marketing.
Let’s stop blaming everything else and let’s make a plan to change that.
I believe in you.
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