Businesses can realize growth in one of two ways: organically or inorganically. Many businesses will tackle a combination of both. Growing organically requires the business to leverage its’ current infrastructure to maintain its growth trajectory. However, when organic growth is simply not enough, companies seek strategic partnerships and potentially, mergers and acquisitions as a means to enhance growth and value (Inorganic Growth).
How is a business to know when to pursue a particular growth path (organic or inorganic)? Understanding the right business venture at the right time in your company’s growth strategy starts with understanding who you are and where you want to go. A decision to expand a business includes:
- Business growth vision
- Assessment of business strengths, weaknesses, opportunities, and threats
- Understanding of existing products and potential products
- Current business performance
- Competition
- Marketplace understanding
- Marketplace end-to-end supply chain knowledge
- Form and fit cultural assessment of target opportunities
- Environmental Disruptors
- New Product/Service Development Evolution
