Organic Growth

Organic growth is the natural expansion of a business or individual through an increase in sales activity or penetration into the marketplace without the use of additional external resources. This typically requires to invest in resources such as advertising, new products, and new staff to promote expansion. Non-organic growth, while potentially faster, involves more risk and can be expensive.

Organic growth is driven by existing team members, products, or services, and may involve the expansion into new product lines, or the evaluation of pricing and delivery models. In comparison to non-organic growth, organic growth typically requires little to no additional investment, but may take longer to accomplish.

It can involve expanding the operations to new regions, exploring new distribution channels, increasing marketing activities and recruiting new customers. Additionally, organic growth may also require pricing, marketing, and customer-retention strategies in order to reach profitability and maintain long-term sustainability.

Often organic growth is associated with companies that bring innovative products and services to the market, and rely on customer loyalty and word-of-mouth advertising to help build a strong market position. This also has the advantage of building a loyal customer base that will help drive future growth.

For example, a company selling products online has reached the end of its sales funnel and is looking to expand its customer base. The company could invest in a new advertising and marketing structure, hire additional sales staff, and invest in a new product line. Conversely, the company could focus on organic growth and leverage its current contacts, customer database, and brand recognition in order to introduce new products and services; build a stronger relationship with existing customers; and source new leads in order to reach the desired customer count.

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