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<\/a><\/strong><\/p>\nTable of Contents<\/strong><\/p>\n <\/a> <\/p>\n So why do I think building a business growth plan is so crucial, even for established businesses?<\/p>\n There are so many reasons, but here are three that apply to almost all companies at some point:<\/p>\n <\/a> <\/p>\n For the majority of businesses, growth is the main objective. Business decisions are often made based on what would contribute to the company\u2019s continued growth and overall success.<\/p>\n Several methods can facilitate growth, which I\u2019ll explain more about below.<\/p>\n <\/a> <\/p>\n As a business owner, you\u2019ll have several avenues for growth. Business growth can be broken down into the following categories:<\/p>\n With organic growth, a company expands through its operations using its internal resources. This is in contrast to seeking external resources to facilitate growth.<\/p>\n An example of organic growth is making production more efficient so you can produce more within a shorter time frame. This means more sales with half the effort.<\/p>\n A perk of using organic growth is that it relies on self-sufficiency and avoids taking on debt. Additionally, the increased revenue created from organic growth can help fund more strategic growth methods later on.<\/p>\n Example<\/strong>: Organic growth could be putting some of your revenue aside to purchase a second machine. A second machine would double your production without debt. This increases your ability to take on larger orders. This way, you create more revenue to invest in a third machine or fund another growth strategy.<\/p>\n Strategic growth involves developing initiatives that will help your business grow long-term. An example of strategic growth could be creating a new product or a market strategy to target a new audience.<\/p>\n Strategic initiatives often require significant resources and funding. Businesses usually take an organic approach first, hoping their efforts will generate enough capital to invest in future strategic growth initiatives.<\/p>\n Pro tip:<\/strong> Strategic growth can be a major endeavor, depending on the size of your business. Be prepared to learn a lot, work hard, and see slow development. Or, hire a skilled employee to work hard at it for quicker results.<\/p>\n Another option is to spend the money on a user-friendly platform you or an employee can manage. Strategic growth is easily a full-time job for anyone, if not for a team of professionals.<\/p>\n An internal growth strategy helps optimize internal business processes to increase revenue. This strategy relies on companies using their own internal resources.<\/p>\n Internal growth strategy is all about using existing resources in the most purposeful way possible.<\/p>\n Internal growth can be challenging because it forces companies to look at how their processes can be improved for efficiency rather than focusing on external factors like entering new markets to facilitate growth.<\/p>\n Example:<\/strong> Cutting wasteful spending and running a leaner operation by automating sales with AI<\/a> is an example of internal growth.<\/p>\n Although riskier than the other growth types, mergers, partnerships, and acquisitions can come with high rewards.<\/p>\n There\u2019s strength in numbers. A well-executed merger, partnership, or acquisition can help your business break into a new market. You can also expand your customer base or increase your products and services.<\/p>\n <\/a> <\/p>\n A company\u2019s industry and target market influence its chosen growth strategies.<\/p>\n To create a strategy, consider the available options and strategically work them into your business plan. Depending on the kind of company you\u2019re building, your growth strategy<\/a> might include aspects like:<\/p>\n Pro tip:<\/strong> Your particular industry and target market will influence your decisions, but it\u2019s almost universally true that new customer acquisition<\/em> will play a sizable role.<\/p>\n That said, you can adopt different types of overarching growth strategies before making a specific choice, such as adding new locations. Let\u2019s take a look.<\/p>\n <\/a> <\/p>\n There are several general growth strategies that your organization can pursue. Some strategies may work in tandem. For instance, a customer and market growth strategy will typically go hand-in-hand.<\/p>\n A revenue growth strategy is an organization\u2019s plan to increase revenue over a time period, such as year-over-year. Businesses pursuing a revenue growth strategy may:<\/p>\n Specific revenue growth tactics may include:<\/p>\n Pro tip:<\/strong> Revenue for the sake of personal income is often essential at the start of a business, and end of a business to use as enticement for selling the company. While you look to the future with your company running, it\u2019s wise to use revenue growth toward continued overall business growth.<\/p>\n A customer growth strategy is an organization\u2019s plan to boost new customer acquisitions over a time period, such as month-over-month.<\/p>\n Businesses pursuing a customer growth strategy may be more open to making large strategic investments, as long as the investments lead to greater customer acquisitions.<\/p>\n For this strategy, you might track:<\/p>\n With new customer sign-ups as the North Star metric, you might spend more on marketing, sales, and CX<\/a>.<\/p>\n Specific customer growth tactics may include:<\/p>\n Pro tip:<\/strong> Remember that it\u2019s about people. Market research tools such as trend monitoring can help keep you aware of what your target audiences are genuinely interested in. This way, you can personalize your marketing to meet their needs.<\/p>\n A marketing growth strategy is similar, but not the same as, a market development strategy<\/a>. This strategy is an organization\u2019s plan to increase its total addressable market (TAM) and increase existing market share.<\/p>\n Businesses pursuing a marketing growth strategy will research different verticals, such as:<\/p>\n This helps give brands a measure of the viability of a market expansion.<\/p>\n Specific marketing growth tactics may include:<\/p>\n Pro tip:<\/strong> The idea here is to get a bigger slice of the pie by growing into already established markets. Instead of finding new markets, this strategy finds space in existing ones.<\/p>\n <\/a> <\/p>\n Download HubSpot\u2019s Free Business Growth Strategy Template<\/em><\/a><\/p>\n With any new venture, you need to document your steps. I recommend downloading this free Growth Strategy Template<\/a> and working off the included section prompts to outline your intended process for growth in your organization.<\/p>\n New business ventures are 260% more likely to launch if they have a business plan and 30% more likely to grow<\/a> when they have a plan for it. You can still run, but plan your route first!<\/p>\n Your business growth plan should hone in on specific areas of growth. Common focuses of strategic growth initiatives might include:<\/p>\n Your growth plan<\/a> may encompass more than one of the initiatives outlined above, which makes sense \u2014 the best growth doesn\u2019t happen in a vacuum. For example, growing your unit sales will result in revenue growth \u2014 and possibly additional locations and headcount to support the increased sales.<\/p>\n Pro tip:<\/strong> Geographical spread is popular right now. In a 2023 Forbes survey<\/a>, 79% of business owners focused on expanding into new geographies. Of small brick-and-mortar and online sellers, 90% want to do the same. Expanding your geographic footprint might be a good option!<\/p>\n Researching the state of your industry is the best way to determine if your desired growth is both necessary and feasible. Conduct research by:<\/p>\n The knowledge and facts you uncover in this step will shape the expectations and growth goals for this project to better determine a timeline, budget, and ultimate goal.<\/p>\n The next step is to determine how much you\u2019ll be growing. To do that, you\u2019ll need to set goals.<\/p>\n These goals should be based on your endgame aspirations of where you ideally want your organization to be. Your goals should also be achievable and realistic, which is why setting a goal based on industry research is so important.<\/p>\n Take the steps to quantify your goals in terms of metrics and timeline. For example, your goal may be to \u201cgrow sales by 30% quarter-over-quarter for the next three years\u201d instead of just \u201cincreasing sales.\u201d<\/p>\n Pro tip:<\/strong> Try to be SMART about your goals. Make them Specific, Measurable, Achievable, Relevant, and Timely based on the results of your market research.<\/p>\n Next, outline how you\u2019ll achieve your growth goals with a detailed growth strategy. Again, I suggest writing out a detailed growth strategy plan<\/a> to gain the understanding and buy-in of your team.<\/p>\n Download this Template<\/em><\/a><\/p>\n This action plan should contain a list of:<\/p>\n The last step before acting on your plan is determining any requirements your team will need through the process. These specific resources will help you meet your growth goals faster and more accurately. Examples might include:<\/p>\n With all of your planning, resourcing, and goal-setting complete, you\u2019re ready to execute your business growth plan and deliver results for the company.<\/p>\n Make sure to:<\/p>\n Your growth plan and the tactics you leverage will ultimately be specific to your business, but there are some universal strategies you can implement when getting started.<\/p>\n <\/a> <\/p>\n Companies can implement different growth strategies to expand a business and its revenue. Check out this list of company growth strategy examples.<\/p>\n Some growth strategies are tailored to be completely self-sustainable. They require an initial push but ultimately rely primarily (if not solely) on users\u2019 enthusiasm to keep them going. One strategy that fits that bill is the viral loop.<\/p>\n The basic premise of a viral loop is straightforward:<\/p>\n Ideally, your incentive will be compelling enough for users to actively and enthusiastically encourage their friends and family to get on board. At its best, a viral loop is a self-perpetuating acquisition machine, operating 24\/7.<\/p>\n That said, viral loops are not guaranteed to go viral. And they\u2019ve become less effective as they\u2019ve become more commonplace. However, the potential is still there.<\/p>\n Part of the appeal is that the viral loop flips the traditional funnel upside-down:<\/p>\n What we like: <\/strong>Instead of needing as many leads as possible at the top, a viral loop funnel requires just one satisfied user to share with others. The system continues growing as long as every referral results in at least 1.1 new users.<\/p>\n Source<\/em><\/a><\/p>\n Dropbox is one product I use that uses viral loops as a growth strategy. Here\u2019s how I fit into the company\u2019s viral loop:<\/p>\n The incentive is strong enough to drive new people to sign up, increasing the number of Dropbox users as a whole.<\/p>\n The milestone referral model is similar to the viral loop. It relies on incentives to kickstart and sustain it. But milestone referrals add a more intricate, progressive element to the process.<\/p>\n Companies that leverage viral loops generally offer a flat, consistent offer for individual referrals. Milestone referrals, though, offer rewards for hitting specific benchmarks.<\/p>\n In many cases, \u201cmilestones\u201d are metrics like the number of referred friends.<\/p>\n A business might include different or increasingly enticing incentives with more referrals, iinstead of a fixed incentive for each referral. For example, if a customer refers ten friends, they\u2019ll receive a better reward compared to those who only refer two new people.<\/p>\n What we like: <\/strong>This strategy adds an engaging element to the referral process. When done right, milestone referrals are simple to share with relatively straightforward objectives and enticing, tangible products as rewards.<\/p>\n I\u2019m a huge Morning Brew fan. In fact, I start my day with the Daily Brew and my cup of coffee. However, I didn\u2019t know the site had a milestone referral program until I began researching for this article.<\/p>\n Source<\/em><\/a><\/p>\n The more people who sign up using my referral code, the better swag I get. Three referrals get me a sticker pack. Five earn me a tote bag. And with 25 referrals, I\u2019ll get mailed a backpack. This system gamifies referral for a product that\u2019s free, making people more likely to share Morning brew.<\/p>\n Word-of-mouth is organic and effective. Recommendations from friends and family are some of the most powerful incentives for consumers to purchase or try a product or service.<\/p>\n The secret of word-of-mouth\u2019s effectiveness lies in a deeply rooted psychological bias: we think others know best.<\/p>\n That\u2019s why social proof is so effective. Social proof is central to successful sales copywriting and broader content marketing efforts because it says, \u201cHey, people trust us.\u201d<\/p>\n Businesses know in today’s customer-driven world, a single negative blog or social media post can compromise an entire marketing effort.<\/p>\n Pete Blackshaw<\/a>, the father of digital word-of-mouth growth, says, \u201cSatisfied customers tell three friends; angry customers tell 3,000.\u201d<\/p>\n Pro tip: <\/strong>The key to word-of-mouth is to focus on a positive user experience. You need to grow a base of satisfied customers and sustain the wave of loyal feedback that comes with it. With this method, you have to focus on delivering a spectacular user experience, and users will spread the word for you.<\/p>\n Source<\/em><\/a><\/p>\n When I felt the early stages of a scratchy throat, I used to reach for Vitamin C tablets or mix-in powders. However, a friend recently brought over a few packets of Salud, a brand of beverage mixes that have hydration and immunity beverages.<\/p>\n I loved how these packets tasted, inspired by Latin flavors common in aguas frescas. Now, I keep a few in my cabinet. And, I\u2019m not the only one in my social circle with Salud. I\u2019ve noticed it in my other friends\u2019 cabinets, showing the power of word of mouth.<\/p>\n Sometimes, a company’s best growth strategy is to offer a unique experience that sets it apart from other businesses in its space.<\/p>\n Say your company developed an app for transitioning playlists between music streaming apps. Assume you have a few competitors who all generate revenue through ads and paid subscriptions \u2014 both of which frustrate users.<\/p>\n In that case, you might be best off trying to shed some of the baggage that customers run into trouble with when using your competitors’ programs. If your service is paid, you could consider offering a free trial of an ad-free experience from the start.<\/p>\n What we like: <\/strong>The point here is that there’s often a lot of value and opportunity in differentiating yourself. If you can \u201czig when they zag,\u201d you can capture consumers\u2019 attention and capitalize on their shifting interests.<\/p>\n Source<\/em><\/a><\/p>\n Online mental health is a space with a lot of competition. BetterHelp, Talkspace, and Modern Health all offer online counseling sessions. However, when a friend of mine started talking about Octave, my ears perked up.<\/p>\n Octave allows users to put in their insurance information and find therapists who are in-network for their healthcare plans. You don\u2019t have to pay any additional fees to use the platform. Octave helped my friend find a therapist who actually accepts her insurance without a premium fee or surcharge.<\/p>\n This insurance angle differentiates Octave from digital mental health competitors. Its focus on mental health is more specific than doctor search sites like Zocdoc, showing the power of differentiation as a growth engine.<\/p>\n Adding a human element to your growth strategy can help set things in motion for your business, and it\u2019s highly effective.<\/p>\n Prospects are often receptive to a personal approach. And nothing is more personal than immediate, face-to-face interactions. Personally interacting with potential customers can be a great way to get your business the traction it needs to get going.<\/p>\n This could mean:<\/p>\n In reality, it\u2019s any other way to directly and strategically reach out to your target demographic in person.<\/p>\n What we like: <\/strong>With consumers used to being saturated with ads, in-person outreach shakes things up and will stand out to them.<\/p>\n If you want an example of in-person outreach in action, look no further than Inbound, HubSpot\u2019s annual conference. Sponsors of the event have booths where they can demo products for interested business leaders. They can also give out swag and answer questions, getting in front of potential customers.<\/p>\n Competition is a necessary part of business, but it can be tough going.<\/p>\n Imagine that two companies in the same industry are targeting the same consumers. Typically, whatever customers Business A has, Business B does not. Market penetration is a strategy that builds off of this tug-of-war.<\/p>\n Market penetration increases the market share of a product within the given industry. Market share refers to the percentage of total sales in an industry generated by a company.<\/p>\n Coca-Cola, the most popular carbonated beverage<\/a> in the United States, has a 42.8% market share. If competitors like Pepsi and Sprite wanted to increase market penetration, they would need to increase market share. This increase would imply that they are acquiring customers who previously bought Coca-Cola or other carbonated beverage brands.<\/p>\n Pro tip: <\/strong>While lowering prices and advertising are two costly yet effective tactics to increase market share, they are part of businesses’ methods for overall sales<\/a> and customer retention.<\/p>\n If a company feels as if they have plateaued and its current market no longer has room for growth, it might switch strategies from market penetration to market development.<\/p>\n Market development strategies help businesses to tap into a new markets and territories by creating new products or finding innovatise uses for a project.<\/p>\n Pro tip: <\/strong>Brainstorm adjacent products or services you could offer to expand into new markets.<\/p>\n Uber launched in 2009 as a rideshare company, allowing people with cars to pickup passengers as a gig. In 2014, the company expanded its offerings with UberEats, allowing customers to order food and have it delivered \u2014 even if the restaurant does not directly offer delivery. Two years later, the company launched Uber Freight, an app that matches cargo carriers with shippers.<\/p>\n This growth is still underway today. In 2025, Uber expanded<\/a><\/p>\n The company started as a way to get passengers to their destinations. Uber expanded their idea and has become one of the biggest names in mobility today.<\/p>\n For growth, many businesses need to introduce something new. Product development allows companies to attract new customers and retain existing ones by creating a new product or enhancing an existing one.<\/p>\n Pro tip: <\/strong>While this is one of the most common ways a business grows, be sure you\u2019re listening to your customers so you know what they\u2019re looking for.<\/p>\n Tech giant Apple doesn\u2019t just make a product and rest on its laurels. The company invests major time and money into product development. According to Statista, the company spent $31.4 billion on research and development<\/a> in 2024. The goal here is to improve products so people stay loyal to the brand or add another Apple device to their tech stack.<\/p>\n Growth alliances are strategic collaborations between companies. They further the growth goals of the involved parties.<\/p>\n Pro tip: <\/strong>To make a growth alliance, look for an adjacent business that already serves your target audience (and vice versa) to benefit you both.<\/p>\n Sephora partnered with retailer Kohl\u2019s in 2020, starting a growth alliance that benefitted both brands. Sephora gets to have products in new locations, reaching busy shoppers in an older age demographic who may not have time to visit their store. Kohl\u2019s brings makeup lovers into the store, who can then shop for other products at the retailer.<\/p>\n In 2022, we also saw Target forming a growth alliance with Ulta Beauty to create dedicated shop space for Ulta in at least 800 stores. The following year, Fenty Beauty<\/a> teamed up with Ulta Beauty at Target<\/a>. Ulta Beauty and Fenty can get their products in front of shoppers at a major retailer. Target has the benefit of becoming an even more dominant one-stop-shop for customers.<\/p>\n Companies can use an acquisition strategy to promote growth. By acquiring other businesses, companies expand their operations by creating new products or expanding into a new industry.<\/p>\n Acquisitions offer significant benefits to companies, such as:<\/p>\n What we like:<\/strong> This is an easy (though sometimes expensive) way to grow since the products or services you acquire are already established and come with a customer base.<\/p>\n Founded in 1837, Procter & Gamble is a consumer goods company known for its acquisitions. It initially started in soaps and candles but currently has 65 acquired companies, allowing it to expand into different markets.<\/p>\n\n
Why You Need a Business Growth Plan<\/strong><\/h2>\n
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Types of Business Growth<\/strong><\/h2>\n
1. Organic<\/strong><\/h3>\n
2. Strategic<\/strong><\/h3>\n
3. Internal<\/strong><\/h3>\n
4. Mergers, Partnerships, Acquisitions<\/strong><\/h3>\n
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Types of Business Growth Strategies<\/strong><\/h2>\n
Revenue Growth Strategy<\/strong><\/h3>\n
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Customer Growth Strategy<\/strong><\/h3>\n
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Marketing Growth Strategy<\/strong><\/h3>\n
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1. <\/strong>Use a growth strategy template [Free Tool]<\/a><\/strong>.<\/strong><\/h3>\n
![](\"http:\/\/www.pascaller.com\/wp-content\/uploads\/2025\/04\/company-growth-strategy-1-20250414-3438769.webp\" "\\"\\"")
<\/p>\n2. Choose your targeted area of growth.<\/strong><\/h3>\n
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3. Conduct market and industry research.<\/strong><\/h3>\n
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4. Set growth goals.<\/strong><\/h3>\n
5. Plan your course of action.<\/strong><\/h3>\n
![](\"http:\/\/www.pascaller.com\/wp-content\/uploads\/2025\/04\/company-growth-strategy-2-20250414-9413658.webp\" "\\"\\"")
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6. Determine your growth tools and requirements.<\/strong><\/h3>\n
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7. Execute your plan.<\/strong><\/h3>\n
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![\"growth](\"http:\/\/www.pascaller.com\/wp-content\/uploads\/2025\/04\/company-growth-strategy-3-20250414-1692059.webp\" "\\"\\"")
<\/p>\n1. Viral Loops<\/strong><\/h3>\n
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![\"traditional](\"http:\/\/www.pascaller.com\/wp-content\/uploads\/2025\/04\/company-growth-strategy-4-20250414-9571166.webp\" "\\"\\"")
<\/p>\nViral Loop Example: Dropbox<\/h4>\n
![\"company](\"http:\/\/www.pascaller.com\/wp-content\/uploads\/2025\/04\/company-growth-strategy-5-20250414-6220392.webp\" "\\"\\"")
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2. Milestone Referrals<\/strong><\/h3>\n
Milestone Referral Example: Morning Brew<\/h4>\n
![\"company](\"http:\/\/www.pascaller.com\/wp-content\/uploads\/2025\/04\/company-growth-strategy-6-20250414-2877845.webp\" "\\"\\"")
<\/p>\n3. Word-of-Mouth<\/strong><\/h3>\n
Word of Mouth Example: Salud<\/h4>\n
![\"company](\"http:\/\/www.pascaller.com\/wp-content\/uploads\/2025\/04\/company-growth-strategy-7-20250414-6376681.webp\" "\\"\\"")
<\/p>\n4. The \u201cWhen They Zig, We Zag\u201d Approach<\/strong><\/h3>\n
Zig Zag Example: Octave<\/h4>\n
![\"growth](\"http:\/\/www.pascaller.com\/wp-content\/uploads\/2025\/04\/company-growth-strategy-8-20250414-7250933.webp\" "\\"\\"")
<\/p>\n5. In-Person Outreach<\/strong><\/h3>\n
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In-Person Outreach Example: Conferences<\/h4>\n
6. Market Penetration<\/strong><\/h3>\n
Market Penetration Example: Coca-Cola<\/h4>\n
7. Market Development<\/strong><\/h3>\n
Market Penetration Example: Uber<\/h4>\n
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8. Product Development<\/strong><\/h3>\n
Product Development Example: Apple<\/h4>\n
9. Growth Alliances<\/strong><\/h3>\n
Growth Alliances Example: Sephora and Ulta<\/h4>\n
10. Acquisitions<\/strong><\/h3>\n
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Acquisitions Example: Procter & Gamble<\/h4>\n