Though the phrases are very similar, there are actually many differences between a growing business and a growth-driven business. Here is how to understand their definitions and the key differences between a growing business and a growth-driven business.
It is much easier to define what a growing business is than what a growth-driven business is. Basically, the main indicator of a growing business is the growing revenue that increases every year. If you record an increasing revenue or gross profit of your business, you can say that you have a growing business.
Other factors that point to the fact that your business is a growing one is the increasing number of employees. You can also look at the number of customers you have every year or the number of sales you make. Most of the time, these factors are based on an economic view of the matter rather than any other perspective which could be a bit subjective.
When trying to identify a growing business, it is crucial to differentiate between real factors and misleading ones like spontaneous jumps in revenue that aren’t actual indicators of a growing business. But what is a growth-driven business?
In growth-driven businesses, sales and marketing are truly aligned. More often than not, the sales department is separate from the marketing department which results in many inconveniences for the business as a whole. But this is not the case with growth-driven businesses where these two departments work together in sync.
Such collaboration is possible thanks to proper communication between the various employees in such businesses. If you set up proper communication in your own business, you can be sure that the process within and without your business will improve dramatically.
Thankfully, tracking business performance nowadays is much easier with the help of different advanced technologies. One of the most effective tactics you could start using is to identify the best software like project management platforms or CRM to help you track the processes in which your sales and marketing teams are involved.
The business strategies of growing businesses and growth-driven businesses are, in fact, very similar to each other being market-focused and market-responsive. If you want to be able to differentiate between these two types of businesses, you should also understand how their business strategies work.
All growth-driven businesses focus their attention on something really important but overlooked in the world of business: customers. If you want to have a well-functioning growth-driven business, you need to structure your strategy in a way that will dedicate the most attention to the customers because customers are the ones that make your business.
Growing businesses, for instance, are focused on more gradual development which entails growing their client base one step at a time instead of trying to take huge leaps. Such a strategy can also lead to the customers being retained for longer periods of time which is always better because gaining new customers is harder than retaining current ones.
What’s interesting about growth-driven businesses is that all their systems and processes are specifically built for growth. Growth-driven companies look into the future of their business and plan ahead. Unfortunately, growing businesses function in a somewhat different way as they practically do the opposite.
Growing businesses often focus their attention on more traditional tactics or spheres which is not the best position to take in the modern world. At the same time, many business owners who have growing companies simply don’t understand the speed with which they might develop and the inevitability of a challenge they might encounter that will require their business to be more advanced than it is already.
Growth-driven companies also realize that they need to have detailed strategies set up for all the aspects of their business. Such businesses have all the details clearly written down with all the questions, even the most particular ones, answered.
Next, all aspects of business related to customers are always kept in check and properly integrated into the strategy of every growth-driven business. Such things as customer acquisition and retention come first on the list of priorities, but customer awareness and leveraging are also pretty important.
Growing companies, though they try to do everything gradually, are constantly fighting to get more sales, acquire more customers, and increase their revenue. As mentioned earlier, there’s the problem of not being ready to face certain challenges which means even more potential risks for the business.
Growth-driven companies take a bit of a different approach as they try to engage with customers at every stage of the customer journey instead of grasping at them at one point or another like growing businesses do. In a way, they strive to guide the customer from the point when they first become aware of the company to the purchase of a product or service and beyond that.
Last but not least, every growth-driven company aims to define its brand and then deliver on its promises and customer expectations. If you want to transform your company into a growth-driven business, you need to make sure that these two things are complete. As a result, you will find that your brand is recognized and your company continues growing even when you are not actively working towards a certain aim.
First, you will need to understand what your brand stands for like your brand values, the message you are sending, and the cause you are working for. Then, you will need to display all of these to create certain expectations for your audience. Lastly, you will need to do everything to meet these expectations and satisfy your clients.
All in all, a growing business and growth-driven business are both very important concepts in the business world. Once you understand what each of them means, you will be able to develop your own company much better.
About the author:
Gregory Chapman is passionate about researching new technologies in both mobile, web and WordPress. Also, he works on Best Writers Online the best writing services reviews. He’s in love with stories and facts, so he always tries to get the best of both worlds.