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If you were to examine some of the world’s most successful businesses, you’ll notice that most of them have something in common. It’s that they go to great lengths to attract the best available talent and to help their employees continually enhance their skills.
The reason for that is simple: businesses will only go as far as their employees can carry them. In other words, better, more capable workers mean more productivity and more growth.
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Any way you look at it, businesses can’t grow unless they have the financial means to do it. And that means most strategies that improve a business’s bottom line are pro-growth strategies. But it doesn’t mean that every effort at improving bottom-line performance qualifies as a strategy to create the conditions for continuous growth. For example, it’s possible to improve the bottom line by cutting staff—but that’s contraction, not growth.
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In the past, business leaders relied as much on intuition as they did on market research when making consequential business decisions. That was especially the case when evaluating new product ideas or market expansion opportunities. And those are the kinds of decisions that connect directly with a business’s growth prospects.
The trouble is, that making the wrong decisions in those areas can lead to significant financial losses, which in itself can sabotage growth. And when those missteps are exceedingly costly, it can even lead to the business needing to pull back its operations to survive.
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254 reads
No matter the industry, there are only two paths to continuous growth. The first is market dominance. In that scenario, the growth opportunity comes from out-competing every other business in the market and swallowing up its market share. But the truth is, there are natural limits to the growth that market dominance can generate.
For proof, look no further than the story of eCommerce giant Amazon. Back in 1994, it set out to corner the market for online book sales. And it eventually did that and then some, driving physical bookstores to near-extinction.
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239 reads
Famed American writer, William S. Burroughs, once observed that “When you stop growing, you start dying.” And for businesses, it’s hard to think of a more apt description of their lifecycle. After all, in industries that have any competition whatsoever, businesses must be constantly growing to avoid being overtaken by others.
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