Once a start-up has reached a stage in which its revenue earning capacity has become stable, and the marketability of its products is feasible.
The next round of questions would be as to how the venture can be raised to the next level, which is the Growth Stage.
It’s not easy to raise the bar of the business from the initial stages to the growth level. It takes reasonable effort, direction, meticulous planning as well as careful charting of resources so as not to commit any mistake.
Any business mistakes in this stage will only lead to the downfall of the company again to the starting up mode, which should be very well avoided.
TYPES OF GROWTH STRATEGIES
Listed below are some growth strategies for giving direction to the venture regarding its future operations:
The primary adage that one step at a time, which emphasizes that with time, automatic growth will indeed happen resounds here.
The question about elaborate planning and charting of resources is unneeded in this stage as the notion is that once, goods and services start to sell, the scope for more substantial sales automatically chips in for better revenues.
The organic growth is the fundamental premise and time element in this front cannot be avoided.
With time, the conversion from the start-up stage to the growth stage will happen to add on all kinds of resources and the right direction.
Another straightforward and convenient option for start-ups to earn quick market standing and reputation is in the form of acquiring similar companies in the same industry verticals.
Generally preferred by cash-rich companies, resorting to this type of strategic move not only leads to normal expansion but also geographic capturing of markets.
Worldwide, not only start-ups but top multinationals also specialize in taking over the operations of a company after careful studying of its future valuation and marketing capabilities.
Through this move, a company can reap onto the goodwill, brand image and reputation of an already established market player.
And through this market capture, the sales of the company will reach high rocket levels and reap good revenue in a short period.
They are mostly undertaken by companies who have already expanded but are as well in a mode to take in fresh investors.
Going public means that the market standing of the start-up has increased. It has enough backing to float its shares in the market and gain investors. It would also mean that concerning the percentage of holding, the workings of the company are under the strict scrutiny of third party investors.
This, in turn, would lead to proper management of the resources of the company accompanied by no scope for any fraud and financial irregularities.
The primary way to expand the start-up besides the means, as mentioned above, is through the opening of new branches and offices in places.
Geographical expansion of the venture by opening various factories, office, branches in outside cities and countries will ensure that world over the:-
- presence of the company is unquestionable;
- The salability of its products is guaranteed;
- Standardization of the products is maintained;
- Greater brand image and recognition;
- Better customer engagement customer retention; and
- Greater sales and revenue
But the major drawback of this type of growth strategy is that it takes a lot of time to open a branch office and capture market, considering the cut-throat competition.
As well as to expand to new geographies, fresh licenses and sanctions would be required to operate legally without any trouble.
Another straightforward way of gaining foreign exchange is to export the goods and services of the start-up to other countries outside this location.
This move not only will ensure the inflow of foreign exchange, which when converted into home currency, will be a wholesome amount, but also provides extensive customer coverage as well as visibility of the brand.
World over, the start-up can gain recognition and customer engagement, provided that the quality of goods and services so delivered is standardized, and it has with it the required legal sanctions for exporting.
MONETARY CRISES CAN BE CALMED THROUGH UNSECURED LOANS
The world over people relies on various kinds of lenders to help them meet financial crises in the form of loans.
But, the Traditional lenders in the United Kingdom do not cater to the needs of those people already having debts to pay off and bad credit scores.
Marginalized people unable to give any guarantee or collaterals can avail loans for bad credit with no guarantor, no fees and on instant decision through online lenders in the UK.
Easy and quick, once the application and other documentation formalities comply, the company sanctions the loan amount the very same day even within a few hours.