Why have only 7% of all businesses hit double digit growth during the past 10 years, while 93% have plateaued or are struggling?
Why are 3 out of every 4 business growth strategies failing today?
These startling statistics drive home the same message for both large and small businesses. The “old-style” growth strategy -- ie., launch ... sell as rapidly as possible ... diversify ... go international ... pursue the next hot opportunity ... repeat as necessary -- no longer works.
What do the handful of today’s high growth businesses know that the others don’t? What’s their secret to creating impressive profit gains -- even in no or slow growth times?
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TODAY’S #1 BUSINESS GROWTH MISTAKE:
“Growing your business BEYOND your core ... not FROM your core.”
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In order to experience double digit growth in today's economy, you must learn and master the following 2 principles:
HIGH GROWTH PRINCIPLE #1: To start, you must KNOW what your core is. Your “core” consists of 2 elements:
** Knowing what business you are ** really ** in ** Knowing your core business strengths, competencies, assets (also known as your competitive edge)
As basic as the above sounds, it is amazing how many companies have never taken the time to define their “core.”
HIGH GROWTH PRINCIPLE #2 : For strong sustainable business growth, focus *only* on opportunities ADJACENT to your core. Ideal adjacent opportunities are 1 step away from your core.
You can move adjacent to your core in such ways as: new related customer segments, geographies, products/services, value chain steps (forward or backward) and channels.
The difference between an “adjacency move” from other growth opportunities is the extent to which it draws on your customer relationships, technologies, skills or core competencies.
EXAMPLES OF SUCCESSFUL ADJACENCY MOVES: Dell employed its direct sales model -- successful with computers -- to market hand held computers and printers. Nike applied its core success formula with athletic shoes to one sport after another - from basketball to tennis to soccer to golf.
THE BOTTOM-LINE: Those businesses who grow FROM their core experience *exponential growth.* Such growth is systematic, high leverage, high return. Those businesses who grow BEYOND their core are at high risk of *failure* and 3 out of every 4 expansion efforts will misfire.
Building From Your Core - To learn more about this author, visit Denise Corcoran's Website.
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