What is Growth in Business?

As business owners, I think we all have a positive association with the word “growth”. We hear growth, and we think it’s a good thing. And, usually, it is – but what does it mean to grow? 

Defining growth is a task that can go in many different directions. In the literal sense, a plant grows when it becomes taller or wider than it was the day before. People, too, grow over time, as does virtually every form of life.

When it comes to businesses, however, things aren’t so easy to define. Some of the ways businesses can grow include the following –

- Growing revenues means a business is bringing in more money than it was during a previous period

- Growth in terms of employee count means a company has more work to do and more resources to pay for that work

- Growing a product line indicates that a company is trying to reach a broader market, or it is attempting to sell more items to its current market segment

This list could go on and on. Depending on how you define it, there are nearly infinite ways that a business could be growing. And, while most of them are good for the business in the end, that isn’t always the case. To be desirable, growth needs to be aligned with the ultimate goals and vision for the organization as a whole. 

The Definition is Yours

With something as open-ended and general as growth, you are free to define it as you wish for your business. In fact, it’s important that you define growth to help guide your processes and procedures. If you don’t know how you are trying to grow, after all, you may make decisions that are not properly targeted to make that growth happen. 

For example, if you aim to grow revenues 20% year over year, you’ll be able to use that objective as your target, and you can then make strategic decisions down from that goal to bring it to life. 

Not all goals are related to revenue, however. Instead of a focus on expanding current revenues, you might choose to aim for growth in the number of products you take to the market. The aim here, instead, will be to optimize your development process, and you may need to grow your team to keep up the pace. Then, with any luck, your revenues will grow in years to come once the product growth has had time to pay off. 

The Evolution of Growth

It’s nearly certain that how you define growth is going to be constantly evolving over the lifespan of your business. For this reason, growth is something that should always be near the top of your mind. How you are trying to grow, and how you will make that growth happen, are subjects that should come up again and again. Whether you are strategizing with an entire team or by yourself as a solo entrepreneur, few topics are as important as growth.