One key metric you look at to see the success of a company is:
-Is it growing?
-Is it expanding?
-Is it winning?
-Is it thriving as a company?
Growth is a really really important metric for any shareholder, any executive in the company. And you want to be growing faster than the market, faster than your competitors. It's a sign that you're really differentiated. But there are really two ways for you to grow. There's organic and there's inorganic.
Now organic is you investing in research and development, and product development, you take the resources you currently have and you're developing new and innovative products that you can bring to the market. And whatever bump in revenues or sales or market share other things come from organic growth.
But inorganic is different. You go outside of the company and you make acquisitions, you may partner, you may do some kind of merging of one company to the other. It's going outside of your current business and operations and buying or partnering with others outside of what you do every day, and get value from them. So if you make an acquisition for example, they bring those products and those customers and those employees into the company. Well that was a part of the business you didn't have before. So that's new customers and those new products and that's a new presence in different markets and new geographies. That is growth inorganically.
We talk about both the positives and negatives to each option in this video. Take a listen to see which strategy your company is most focused on!
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