No business can grow unless the people behind the organisation are focused on achieving growth. As new markets expand and globalisation becomes the norm, growth opportunities can become limited and even niche areas of business can become saturated. The ambiguity of the economic climate and differences of opinion amongst experts and forecasters is blurring many markets and this is further compounded by increased competition and operational complexity.
There is no right or wrong answer when it comes to growing your business, which is why our newest research focuses on the variables which influence business growth.
The Holy Grail of profit
Profit is often seen as the benchmark metric for measuring business growth and is ultimately the Holy Grail of business goals. There are many more ways of tracking growth, such as through measuring footprint, workforce and product offerings, and all have a real impact on a business’s overall development. These significant factors often need to grow before profits can be achieved and so businesses need to build strategies to pave the way for growth.
All businesses have their own growth journey and before now there has been little research tracking business growth and its related metrics on a global scale. Our latest study attempts to change this, bringing the state of global business growth to life, and showing exactly how the business landscape is evolving.
Getting growth: trends across the globe
The research draws out some global trends despite the unique nature of each business’s journey. It shows that that one-in-three (36 per cent) businesses across the globe have failed to grow their profits in the last 12 months, leading us to question where these businesses are on their growth journeys. Do they ‘get’ growth? What goals they are chasing? Are profits on the horizon, or out of reach?
Not achieving profit may be down to strategic decisions. Companies may be investing elsewhere, for example, or growing in other ways, before they can see a growth in profit.
The companies that are coming out on top in the profit stakes are those with a ‘grow getter’ approach, taking opportunities when they’re presented to them such as those in the emerging economies of India and Mexico. ‘Grow getter’ companies typically proactively invest in technology to boost productivity which gives them the scope to expand into new markets and adopt an agile approach to changing macroeconomic events.
Companies with this proactive ‘grow getter’ approach typically see speedier profits and returns on investment. An impressive 80 per cent of businesses in India grew their profits in the last 12 months whilst businesses in other regions were left planning and preparing, perhaps growing in other areas, but falling further behind in terms of profit growth.
The fascinating and valuable findings of our latest study have shown us just how essential this information is for the future of the modern business world. As such, we will continue to report on changes in the global business environment.
Are you a ‘grow getter’?
Where does your business sit on the ‘grow getter’ scale? The fact you’re reading this suggests you may well be a ‘grow getter’ but how is your business growth strategy shaping up? Are you ready to compete against global businesses that are primed to implement the latest technologies and systems?
If you don’t think you are, perhaps you should take a closer look at how some of the latest enterprise technologies can boost your productivity. We look forward to helping you on this journey to ‘get’ growth quicker.
Sabby Gill is executive vice president (international) at Epicor Software.