In the competitive business world, there’s an erroneous notion that acquisition or new product development are the only two ways of expanding a company. However, other methods for growth also exist without requiring as much upfront investment.
One such method is the organic growth strategy—the process of growing a company through existing sales channels and customers without making any significant investments in infrastructure or capital expenditures.
The concept involves using what you have available to generate additional revenue without spending much on marketing efforts or new facilities and equipment.
In this article, you’ll find out what an organic growth strategy entails, why it’s so effective for small businesses, and how you can implement one today!
What is an organic growth strategy?
It is a marketing strategy to grow your business without using paid advertising. It relies on building a good product people want and then getting more customers to know about your product through word-of-mouth marketing.
Organic growth strategies can be very effective, but they take time. They are best used by companies where the owner has plenty of capital and isn’t in a rush for revenue or profits.
How do you create an organic growth strategy?
Start with a problem statement: What are your customers’ problems or issues?
List the stakeholders: Who is involved in creating this solution, and how do they influence it? For example, who will use it if you’re developing a new product, and how can they provide feedback on its usefulness?
Identify the issues to be addressed: What keeps them from achieving their goals and objectives? How can these issues be resolved through your product or service offerings (or leveraging other products/services)?
Create a strategy to achieve the goals and objectives: Your solution should address all of the stakeholder’s needs and any external pressures that might arise along the way (such as changing market conditions). It also includes deciding which tactics will allow for the successful implementation of this solution over time—including any necessary changes along the way!
Example of an organic growth strategy
An organic growth strategy is growing your business using only organic means. For example, if you are running a restaurant and have reached a saturation point in your local community, you may expand to other cities.
The strategy mentioned above is an example of organic growth because it does not involve paid marketing channels such as TV commercials or billboards. Instead, you leverage your company’s existing strengths and resources to gain new customers by opening more locations or expanding existing ones.
Benefits of an organic growth approach
Here are some associated benefits if you take the organic approach.
You can implement your strategy immediately
Organic growth strategies don’t require lengthy planning and preparation as paid approaches do. Once you set your goals or objectives, it’s up to you when and how you execute the plan.
Easier to measure than paid approaches
Organic growth is easier to measure than paid approaches because there is no need for complex tracking software or other technologies used by PPC experts. You can easily track search rankings on Google Analytics reports and other platforms without much effort.
An organic growth strategy is an excellent approach for startups and businesses that want to grow quickly. It provides a way to scale the business without spending much money on paid advertising, which means your budget can go towards other things that are more important for success (like product development).