6 Ways to Grow a Company

The term "innovation" often refers to the genius who turns startups into gold mines: the later Google, Apple and Amazon, and nobody even knew they needed a product. Private equity funds are making hundreds of small bets on these startups and want a company to generate a large amount of money to cover the rest. Betting on the next growth engine often depends on luck rather than foresight.

            On the other hand, all companies aim to innovate like these start-ups. Many companies invest or buy them, but most do not follow the corporate strategy or respond to market information because they do not know what they will bring except the halo effect that can be overpaid, even worse. The same applies to ideas. It's important to know where to raise money without making random bets. However, according to a series of three surveys conducted by Maddock Douglas, the consulting firm I work for, over a six-year period, 80% of executives say that business success depends on the introduction of new products and services. If you know, more than half agree with your company. We are not spending enough resources to support innovation.

Innovation is the term used to find new ways to grow, and every business needs to grow year after year. But the first step in producing true growth is to understand where it comes from. I thought growth was unnecessarily complex, so I narrowed it down to six simple categories using Apple's corresponding example.

1. New process. Sell ​​the same with higher margins - reduce production and shipping costs, automate efficiency, reduce supply chain or fat production, and use robots.
2. New experience. Sell ​​more of the same products to the same people: Increase retention and share through strong customer relationships. One example is the Apple Store experience, which many consider as compelling as its products.
3. New features. Selling Empowers the Same People: Adding upgrades makes progressive buying easier. In this example, all the new phones released by Apple have better cameras and more.
4. New customers. Sell ​​more or less of the same things to new people: Introduce your product to a new market with similar needs to the basics, or to a market that may fulfill different needs together. For Apple, it's more about the public than the design community.
5. New offer. Create new things to sell-developing new products as well as improvements. Find new needs to fill existing markets or invest in new portfolios. Think of your HomePod or iPod.
6. New model. Selling Things in New Ways: Imagine approaching the market by creating new sources of income, channels, and ways to create value. It may be as easy as switching to a subscription model or switching like Apple's iTunes.

         Determining how to grow must be intentional, not accidental. Innovation budgets are tight, so allocate limited resources to minimize risk and focus on the best practices. Just as retirement funds need to balance between high risk, low risk and compensation, they need to balance to get maximum returns. These are the 6 to grow a company.

 

Credited article: Author Gino Chirio & credited mages: pexels.com