Over the last couple of years, the global economy has been reshaped by a string of shocks starting from the outbreak of war in Ukraine and soaring inflation o the COVID-19 pandemic. The world is experiencing prolonged geopolitical, social and economic turbulence that has driven volatility and uncertainty to their highest levels in decades. Kavan Choksi mentions that for business leaders this means to continually confront new and different challenges.
Kavan Choksi shares the importance of growth strategies
To deal with an uncertain world head-on, it becomes critical for businesses to develop growth strategies that are purpose-driven and focused on long-term value creation, rather than short-term profits. A growth strategy allows companies to expand their business. Growth can be achieved by practices like adding new locations, expanding a product line, investing in customer acquisition and so on. The target market and industry of a company influence the growth strategies ideal for it.
All businesses, regardless of their type or size, must have proper growth strategies in place. Even if small business owner is content with their current business scale and mobile phones directory australia, they still need to have a growth strategy simply to keep up with inflation. Growth strategies allow businesses to grow into a larger entity, and acquire improved competitive advantage through greater influence, more money and size. It aids small businesses to effectively survive the unpredictable changes in the business ecosystem, like recessions, pandemic and so on. In many ways, growth is about equipping a business with the tools and resources it needs to sustain in the market. This does not necessarily mean that the business shall keep getting bigger. At times, growth strategies might simply be needed for its survival during uncertain times. For most businesses, growth strategies are a road map or plan for its future survival and success.
As pointed by Kavan Choksi, Market Penetration, Market Development, Product Development and Diversification are some of the most common types of growth strategies explored by modern entrepreneurs. Diversification can be risky, but does deliver high returns when used appropriately. Diversification is generally used when looking for new markets to sell to. During economic uncertainties, an entrepreneur may discover that their current product or service offering needs to change to suit the needs of the target market. If the business is able to effectively address and solve a pain point stretching across the customer base, they would surely thrive and gain a much needed edge against the competitors.
Creating a customer persona is also a pretty popular growth strategy. After all, a growth strategy cannot be optimally effective unless a person has a proper knowledge of the customers and their requirements. Taking stock of how the business is communicating to and servicing customers constantly is the key to growth. While growth on a limited budget, especially during uncertain times, can be hard but is achievable enough, especially if one is able to capitalize on the low cost and high impact of influencers. On the whole, one must note that due to its high importance, companies must continue with their growth strategies during economic uncertainty.
