In most businesses that have growth plans there are usually some core drivers of that growth. Listed below are some of the key ones that exist in most growth businesses.
Investor Dissatisfaction and Impatience – this drives many a growth plan. Having invested their money, and wanting to get it out with a significant return, investors (often using their Board influence or financing leverage) attempt to drive CEO’s to create and execute growth plans. Sometimes investor dissatisfaction results in the removal and replacement of a poorly performing Founder/CEO by a CEO who can get the job done.
Market Pressure – drives many growth plans. In many markets there is a strategic need to have a minimum share of a market to be credible and viable. In market pressure growth situations if a business is not growing then it will ultimately shrink. Growth plans in these situations is critical to survival.
Proactive Management Push – those who have been exposed to high growth experiences in prior companies sometimes are the drivers of growth plans, simply because they know it can be done. “Growth is Fun” or “It is Fun to Grow” is part of the culture of a company. Sometimes growth plans in these companies is extremely ambitous to the point of really pushing the boundaries of what seems possible.
Reactive Customer Pull – sometimes current customers and others need the business to grow to be able to meet their own growth requirements. Sometimes partners are part of this pressure to grow as well.
Inertia – unfortunately, is the driver of many growth (actually non-growth) plans. A lack of desire to change appears to result in arrested or backsliding growth. Some businesses are headed by CEO’s who want “A” level growth but do nothing to make it happen. This sometimes results in these businesses “hitting the wall” in their growth and development.
Having awareness of our drivers of growth can help us all develop improved growth plans. Which of these is the growth driver of your business?