That word “growth” is bandied around a lot isn’t it? So much of the talk out there is advice about how to grow your business. We all seem to believe the adage “if your business isn’t growing, it’s dying.”
Have you defined exactly what growth means in your business?
After you consider the question above, you need to answer the follow-up question. Have you considered how much growth is right for you?
Traditionally, growth is often measured by growth in revenue, the top line. It’s what we can easily compare between companies and organizations, so we are bound to look at this first. It relates to bringing in business; more business equals growth, right?
However, we also know growth in revenue isn’t really growth without at least corresponding growth in profits that translates into cash flow. This is the true bottom line of your business. Hopefully, you can run your business and get greater growth in profits over solely a growth in revenue. That turns into more cash. I think we all understand these definitions of growth.
Let’s go a step further. Aren’t other definitions of growth out there as well?
Here are some other definitions I’ve been pondering lately.
- Business growth could be the same revenue but with increased profits.
- It may mean the same revenue and profits that’s been accomplished much more easily.
- Growth could be signaled from the same revenue and profits but with more enjoyable customers or work that is more fun.
I’m still holding on the belief that if your business isn’t growing, it’s probably starting to die. But, these additional definitions of growth give us a better idea of what growing actually can be.
Let’s define what business growth looks like for your organization. Then, we’re ready to unleash the growth that fits your definition.