Some types of small business grow through a fairly steady increase in sales revenue without having to first add staff or other resources.  We call this ‘linear’ growth.

An example is a retail ecommerce website.  It can grow sales volume without having to add staff and other resources for some time because all the production work is done by its suppliers.

If your business fits this description, this article is right for you.

Tools for Linear Business Growth

Linear growth may look like the easiest type of growth because you can just accelerate one sale at a time rather than having to add people and other resources before you can grow.

In some ways, this very ease can make it hard.

How to grow linearly will depend heavily on what sort of business and product you have so we can be too specific here. 

You can drill down on particular growth issues though our Diagnostics system and possibly starting with the How to Increase your Business Revenue collection of tools.

Limits to Linear Business Growth

The fact that linear growth is steady attracts a lot of businesses.  This can actually make it more difficult than it seems.

Here are some of the common limitations.

Competition for Growth

Easy to enter a market means it attracts competition!  

Even if you start out successful in your niche, your very success will attract competitors who figure they can do it too!

Surviving and growing in a competitive market place is tricky.

Escalating Marketing Costs

In a market with competitors, you basically have to out-market them to compete with them for sales.

This will enviably cost you time and money pushing up your costs.

Our assets dealing with Digital Marketing are on this link.

Price Squeeze

At the same time you are often competing on price (I am the cheapest!) so your profit margins are squeezed.  Escalating marketing costs worsen your profit margins.  You can read more on Pricing Strategies on this link.

One way to avoid a price rush to the bottom is to trade in premium goods and services that people expect to pay premium prices for.

error: Content is protected !!