Internal (organic) growth
A business grows when it sells more The amount of something produced. over a period of time. Business growth is often an important business objective because it may:
- help to increase The percentage of a market taken by a particular business or product.
- improve The amount of money made after all costs are deducted.
- increase The income earned by a business over a period of time from selling its goods or services.
- help a business to open more branches
Business growth can occur in a number of ways:
- from employing more people
- from opening more branches
- from increasing The sale of products or services for money. or revenue
- from increasing profits
Internal growth, or Organic growth (also known as internal growth) is when a business expands from within. This could be by, for example, expanding its product range, increasing the number of its business units or adding new locations., occurs when a business decides to expand its own activities by launching new A product is a good or service that is sold to customers or other businesses. and/or entering new markets. Businesses do this in order to improve their chances of increasing their customers, revenues and profits.
New products
Many new businesses start out with one product idea. Once a business has a market it already sells to, it is easier and less risky to expand its product range with related products.
To ensure internal business growth is successful, a business can engage in Research into new products or processes and developing the ideas that are created., which is work directed towards the The act of creating new products or processes. , introduction and improvement of products and processes.
Business example
An established soft drinks brand or manufacturer might start off selling one cola product. Because of changing tastes, competition and business growth, it might later expand its product portfolio with new drinks, such as vanilla cola, cherry cola, lemon cola and sugar-free cola.
