You often hear business owners talk about how quickly they're growing their business - it's a common measure of success, a badge of credibility, as though business growth is the single most important goal of a business.
There is no doubt that business growth is an important goal, but we need to be clear that there are different kinds of business growth, such as a growth in sales, growth in total revenues, growth in headcount, or growth in market share.
However, these much touted types of growth, are not necessarily the best way to show business success, and they are probably not ideal KPIs for your business, as these goals are all relatively easy to achieve. All you have to do is lower your price and sell more stuff, just by discounting your pricing and increasing your sales volume - you will be able to hit those goals - and obviously this isn't ideal.
In the long term, lowering price to increase sales or grow market share is not sustainable.
Most of these growth strategies unfortunately lead to a lowering of overall profitability, and possibly losing money and moving the business into the red. This is definitely an undesirable way to run your business, and one that will ultimately stifle growth.
So what growth goal should you go after? Which growth goal is the most desirable? And which is the one goal you should relentlessly chase?
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