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Welcome to Innovate Africa With Dotun Adeoye

Infinite, sustainable growth ideas and examples for strategic thinking executives every Sunday

THE BLOG

Innovate Africa With Dotun Adeoye Every Sunday

Infinite, sustainable growth ideas and examples for strategic thinking executives every Sunday

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Organic or inorganic growth? A guide to creating your business growth strategy

Growth. It’s something that all business leaders, entrepreneurs and founders strive for – but with so many different tactics available, it can be challenging to know which strategy is best for your organisation. Organic or inorganic growth? Should you invest in marketing campaigns or look to acquire a new business? How do you decide whether expanding organically or through acquisitions will give you the most success? In this blog post, we’ll look at both options and guide you through formulating the right strategy for your company based on non-biased criteria and analysis of past performance. So read on to find out more about organic vs inorganic growth and how they can help drive scalable results over time.

There are two ways to grow a business: organically or inorganically.

There are two ways to grow a business: organically or inorganically. Organic growth occurs when your company grows due to its efforts, whereas inorganic growth means expanding by acquiring other companies and merging with them.

The benefit of organic growth is that it allows you to build up your internal processes for success over time, which can be helpful if you have high standards for what makes an effective business model. The drawback is that it takes longer and costs more money than acquiring another company or merging with one, so if speed or cost is an issue for you, then inorganic growth may be the better choice.

Businesses that pursue organic growth typically focus on increasing their sales via their current product or service offerings. Conversely, those who seek inorganic growth often look at expanding their product offering, entering new markets, and acquisitions.

There are two distinct strategies for scaling a business: organic and inorganic growth. Basing your decisions on an understanding of which approach you want to pursue is critical, as both offer unique benefits from longer-term control to outright capital infusion. Businesses that focus on the former strive to expand their sales through existing product or service offerings, while those favouring the latter tap into expansion opportunities via additional products, new markets and acquisitions. Defining clear goals can help determine if organic development or buying power form part of the paths towards success -and profitability- down the line!

Organic growth is the organic expansion of your business.

Organic growth is the expansion of your business as a result of your efforts. It’s not dependent on external forces but rather a natural growth process. Organic growth occurs over time and tends to be slow and steady in its approach.

Organic growth is the most sustainable kind of growth. It helps you achieve long-term success because it allows your business to build on its current strengths and capabilities.

Organic growth is the most sustainable kind of growth. It helps you achieve long-term success because it allows your business to build on its current strengths and capabilities.

Inorganic growth is the growth of your business as a result of mergers and acquisitions.

Inorganic growth is the growth of your business as a result of mergers and acquisitions. Companies that pursue inorganic growth typically look at expanding their product offering, entering new markets, or acquiring other companies to expand their reach or fill market gaps.

Organic growth involves scaling your existing business by increasing sales via your current product or service offerings.

Both organic and inorganic growth is essential for the success of your business, but it’s hard to scale without a plan for each type of growth. If you have a well-defined strategy for growing inorganically growing your business, be able to reach new heights without having to rely on outside forces.

Understanding whether you want to scale your existing business with organic growth or if you want to build out that interaction with an acquisition is imperative to understanding your growth strategy.

It understands whether you want to scale your existing business with organic growth or if you want to build out that interaction with an acquisition is imperative to understanding your growth strategy.

Once you have identified the business model that works for your brand, it’s time to understand the pros and cons of each.

There are inherent risks associated with both organic and inorganic growth strategies, so it’s essential to understand what they mean before proceeding.

Risks associated with organic growth include:

  • Limited market opportunity
  • Limited resources to invest in growth
  • Limited ability to quickly enter new markets
  • Increased competition

Risks associated with inorganic growth include:

  • Integration risks, such as cultural differences and operational issues, when merging with or acquiring another company
  • Financial troubles, such as overpaying for an acquisition or taking on too much debt
  • Regulatory risks, such as potential antitrust issues or challenges to the merger or acquisition from regulators
  • Reputational risks include negative public perception of the merger or acquisition.”

A clear understanding of your current marketplace and how to pivot within it can help grow your business organically.

Understanding your current marketplace and how to ride within it can help grow your business organically.

For example, you might find that most of your customers are older and more conservative than you’d thought. You can use this information to develop a new product line or additional services to meet their needs better.

This is also the time to look at what’s working well in your business and isn’t serving its purpose anymore. For example, maybe one part of your process has become very efficient, but another interest is falling behind; perhaps some things need updating while others could be replaced entirely.

It’sessentialt for any company looking at inorganic growth first to evaluate the company they’re acquiring, including its mission and culture.

It’sessentialt for any company looking at inorganic growth first to evaluate the company they’re looking for, including its mission and culture. It would help if you also looked into the financials of the company you want to buy and how that will affect your business. You need to ensure that you can provide the same level of customer service as the company you are buying, which means having enough resources. You also want to ensure that all legal issues are resolved before acquiring, especially if it involves another country or state (like yours).

It’s important to know what kind of growth you want for your business and plan accordingly.

It’s important to know what kind of growth you want for your business and plan accordingly. Organic growth is a slow process that takes time but can be rewarding in the long run. However, remember that you will have to take risks if you want to grow organically, so it’s essential to consider the potential consequences of those risks.

Pursuing inorganic growth means taking advantage of opportunities presented by outside sources, such as marketing firms or investors. This approach requires a lot of planning and research beforehand, but once your strategy is set up and ready to go, it can have many advantages over organic systems: The process may be easier on your budget; there are more resources than ever available online for learning about best practices in this field; you’ll know exactly how much time each task will take so that nothing falls through the cracks or goes unnoticed until too late—and many other benefits!

It’s essential not only that you understand these two different types of strategies but also how they work together in tandem with one another (or not!). For example: If my company wants organic growth right now because we’re making money off our current products, but we want something new soon enough—maybe even within three years—then what kind? How far out should I plan? Should I think about pivoting my offerings now before someone else does? Does diversifying mean adding something similar enough while keeping focused on current strengths?

Bottom-Line

Organic growth is the organic expansion of your business. Inorganic growth is the growth of your business as a result of mergers and acquisitions. It understands whether you want to scale your existing business with organic growth or if you want to build out that interaction with a purchase is imperative to understanding your growth strategy. There are inherent risks associated with both organic and inorganic growth strategies, so it’s essential to understand them before proceeding. A clear understanding of your current marketplace and how to pivot within it can help grow your business organically. It’s crucial for any company looking at inorganic growth first to evaluate the company they’re acquiring, including its mission and culture.

Who am I?

I am Dotun Adeoye, a Business Growth Strategist & Author of the 5 Pillars of Business Growth.

I’ve built up my experience via serial entrepreneurship, consulting leadership roles in business growth, business development and product innovation in large companies worldwide in the last 30 years.

Today, I consult with large businesses on how to sustainably grow their businesses, sustain infinite growth, ensure business continuity and achieve a legacy.

Hire Dotun Adeoye to Speak Virtually or In – Person at your company’s event to cover this or other topics. You can also get in touch via +44 203 097 1718 or dotun at dotunadeoye.com.

 

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Innovate Africa

With Dotun Adeoye

Every Sunday

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 Teaching business leaders how to grow their businesses & leave their legacy.