Assignment 1: Challenges to Growth
Business growth is a trending subject matter among entrepreneurs. It is undoubtable that at least a single influential entrepreneurship school of thought as an essential distinguishing characteristic of enterprise companies views dedication to business growth. It is crucial that for new business that want to flourish to facilitate the economic development of nations and states. However most aggressive and vibrant entrepreneurs estimate high growth ambitions. Businesses that are first movers and valuable are rare and there worthy to research and take notice of them. Many companies that have usually grown pass through various stages in order to reach the climax. Most people criticize the approach of steps to determine the business growth. The stages approach is the most crucial technique for giving people tutorials on business flourishing in entrepreneurship. Business growth is a vital subject matter in facilitating organizational thriving and development (Kuratko, 2007).
There are stages of organizational growth that help the entrepreneurs to flourish their business. The first stage that many organizations undergo is the new venture stage. In this stage, the kit is crucial to start with a revelation about an excellent product, how it will reach customers and reason people are going to buy it.For a company to realize this is crucial for them to test their suppositions about the market trends and potential clients and turn them into reality. Before a firm gets its line of products to the market, it is important for them to understand several factors. Failure to consider these factors will lead to most promising and even well-established first movers to downfall (Kuratko, Ireland, Covin & Hornsby, 2005). The factors include the level of understanding of the clients' most essential wants and needs. Then it is important to describe and implement the solution. Then it will be important to confirm that customers will purchase the right and that the revenue collected will lead to a profitable business model. Then calculate the market potential growth for the product. In order to achieve the new venture stage, it will be important to implement a sales strategy on how to sell the product to a small group of customers.
In the early growth stage, there are tactics that have to be embraced by the entrepreneur in order to be successful. I t involves the unveiling of a great product, strategizing the sales and marketing techniques. The business owner should be able to attract a broad consumer base. Additionally he should hire skilled people to back up his or her organizational operations. He should gain visibility through the loyal customers who come to give positive feedback. To be successful in these the entrepreneur should be able to increase the company operations by forming partnerships with other firms. A firm may a large consumer base, but it its brand loyalty by customers is in doubt. The early growth stage will help develop a consumer purchasing power and turn it into sales (Kuratko, 2007).
There are several steps to approach the rapid growth stage ensuring that many people consume one's product. The business owner should build a corporate structure and also make a strong, skilled management team. Companies may face consistent and severe organizational crisis. The rapid growth stage will facilitate the business operations and organizational structure expansion (Kuratko et al. 2005). Several ways to approach the sustainable growth include framing a strategic plan for opportunities. The business owner should focus on expanding markets and developing a senior management panel. The stage will assist the companies in coming up with solutions for firms where the continued thriving and success is not assured.
References
Kuratko, D. F. (2007). Entrepreneurial leadership in the 21st century. Journal of Leadership and Organizational Studies, 13(4), 1.
Kuratko, D. F., Ireland, R. D., Covin, J. G., & Hornsby, J. S. (2005). A Model of Middle‐Level Managers’ Entrepreneurial Behavior. Entrepreneurship Theory and Practice, 29(6), 699-716.
