About Organic Decline

About Organic Decline

Once your business matures, you may have difficulty maintaining the rate of organic expansion that you achieved during its growth phase. Although it may feel like your business is declining because you aren’t maintaining the rate of rapid expansion that you experienced during the previous phase, you may actually be stabilizing and drawing on the foundation you already created. A mature company may not show much organic growth simply because it is at a stage in its business life cycle when aggressive growth isn’t necessary. However, if your sales start to drop off sharply, or you begin to lose market share, it may be time to start reinventing your brand and reinvest in the organic growth cycle. Organic growth strategy advantages and disadvantages often come down to what you hope to achieve from running your business and your personal and professional vision of success. Not every entrepreneur needs to operate on a global scale or earn millions of dollars. You may be...
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Organic Growth Advantages

Organic Growth Advantages

Autonomy. Although some organic growth companies do bring in investors, this strategy requires considerably less outlay than externally based expansion, making you less beholden to other stakeholders who may not share your vision. If your organic growth is slow and steady, you may be able to finance it entirely with your own credit and resources, freeing you to run your business entirely as you see fit. Sustainability. It’s easier to maintain an organic rate of growth than a trajectory geared toward external expansion. If you’re looking to build a human-scale business rather than a juggernaut conglomerate, an organic growth strategy will be easier on your finances and most likely on your personal life as well. Reduced risk. The risk involved in an organically growing business is measured risk because expansion is incremental, and such a strategy builds on existing strengths and resources. You’re investing in what you know rather than borrowing to merge your company with an unfamiliar entity. ...
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Types of Organic Growth

Types of Organic Growth

Leveraging strengths. Every business has products, services and revenue streams that are better than others for its bottom line. Management accounting can provide you with detailed information about how much each of your offerings costs relative to the return it provides. With this data in hand, you can focus on investing in your most profitable endeavors and scaling back or completely eliminating those that provide less of a return. This process allows you to grow organically, building on the business model and infrastructure you already have. Introducing new products. You can also grow your business organically by introducing new offerings. Although new product development can be expensive, it is still usually more affordable to do the work and create the systems internally than to invest in a product that another business has already developed. Products that you develop and introduce yourself are also more likely to keep with your strengths and your brand, helping to build your company across the board. Continuous improvement. Whatever your...
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Personal Issues at Play

Personal Issues at Play

Being your own boss is the dream of most entrepreneurs, but it comes with a price. The freedom of not having to answer to someone else becomes the obligation of having to answer to the needs of the business. In this sense, the business is the new boss. Work-life balance: Starting a business will consume a lot of time, energy and commitment. Not letting the business prevent you from having personal time is a challenge. An entrepreneur needs to set aside time in the workweek to spend time outside the business and stick to it. The failure to deliberately manage a work-life balance can lead to burnout, health problems and lost relationships with family and friends. Where to start: Starting a business requires a seemingly endless list of things to do; it can be overwhelming and lead to paralysis and inaction. The best approach is to organize the tasks, pick one and get started. Managing growth: After making the first sale, the next challenge is to manage...
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Starting a Business Is not Easy

Starting a Business Is not Easy

If you ask entrepreneurs what problems they faced when starting a business, the answers will usually be the same: money, employees and personal issues. All businesses need enough equity capital to survive startup and growth with sufficient cash flow coming in to pay the bills. Employees will consume a large portion of that cash flow, but they are part of the growth of a business. In the meantime, the owner has to maintain enough self-confidence to persevere through the negativity and huge challenges and not lose the belief that the business will undoubtedly succeed. So, what is the first thing to do when starting a business? No simple answer exists for this question. An aspiring entrepreneur must address all of these challenges at the same time. However, being able to successfully handle all of these problems is the gratification for starting the business in the first place. ...
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