Steady Vs Exponential Growth: Which One Is Best For Businesses?
For every business person, development is the ultimate goal, but not everyone faces it. Many such situations occur where one stuck in a single spot, like a saturated state. It is the most severe condition that can push an entrepreneur several years back in terms of growth.
To manage the firm’s growth, one has to deal with a different situation, and identify which one is correct or not. Suppose if someone is suffering financial trouble, then they must look for a quick option, as a guaranteed loan from the direct lender for instant solution. If you choose method randomly, then it may hurt your business more.
It is imperative to know which one is correct or not. Similarly, not every type of growth is right for the business. Why?
There are two types of growth:
- Steady Growth
- Exponential growth
The points mentioned above are two different growths. We have covered both in details, and you can learn which one is best for your business.
First steady growth.
What Is Steady Growth?
It is the growth that occurs slowly, but you can witness the increase in profit every time. However, you cannot expect quick returns or high revenue the next day. Such kind of boost is known as steady growth. These are common among new firms that take time to grow.
Suppose you are managing the online grocery store, then you have to follow the specific points.
- Build brand
- Drag more customer
- Strong marketing
These are the significant part that everyone has to follow. And it indicates that it will take time and you have to manage the cost. For this, you have to grow every day or every single day. With this technique, you can experience that will aid you to beat the problem in the coming period.
How will you identify that is this good for your firm or not?
If you want to stay in business for a more extended period, then this type of growth could be the right choice. In case you are new to this industry, then it would be the right choice.
Pros Of Steady Growth
There are three benefits that you can get from it:
- Manage money in a much better way
- Strong team coordination
Cons Of Steady Growth
There are two limitations that you may face:
- Long term
- Hard to detect things
You can see these are the benefits and disadvantages of steady growth. Now, you have to analyse your firm and read which one is correct for you. Make sure you find your aim. If you find that this is not suitable for you, then move to the next one that is exponential growth.
What Is Exponential Growth?
Have you ever heard about the growth which gets high overnight? If yes, then it is known as exponential growth. It occurs within a day or hours; no one can predict. Majorly it relies on the marketer’s method. Many strategies make the product go viral.
Controversy or viral marketing are the two major role play on exponential growth. It may not be only when you are managing a large firm.
Now you can understand what exponential growth is.
How will you identify exponential growth is right for your business?
If you are managing a small firm and want to maintain the firm for a more extended period, then this one is not for you. In case you are running a business just for the second source of income and don’t have any plan to run for a more extended period, then exponential is best for you.
With this, you can easily manage the cost and can recover the invested money. However, for this, you have to work hard on it and come up with unique methods to go product viral. You can use social media to turn product eminent and can reach to the more people.
From above it must be clear that when you should go with it.
Now, let’s have a look at the pros and cons.
Pros of Exponential Growth
There are three significant benefits, like:
- Cost recovery
- Less hectic problem
- Less funding issues
Cons of Exponential Growth
- Not suitable for long term business
- Fail to gain experience
- Do not be able to match the demands
These the pros and cons, and make sure you are aware of them before starting the business.
It is a detailed analysis of steady and exponential growth. You can go with any one of them. But after finding your goal and how much do you want to earn. If you’re going to make quickly, then go with exponential or in other cases steady could be a perfect choice. So, the analysis here plays an imperative role, do not choose blindly, and select one that suits your business and your current financial situation.