Shree Mahalakshmi Damodar Prasanna
EDITORIAL
Stay in Growth Mode JULY 2022 Publisher & Editor Harshvardhan Bhatkuly Group Director Urvija Bhatkuly Business Head Annalise Gouveia Chief Reporter Sybil Rodrigues Graphic Designer Rakshama Naik Circulation Mayur Santineskar Contributors in this Issue Cassandra Carvalho Dr Emanuel Gracias Dr Pradeep Salgaonkar Kishore M Shah Mahesh Pai Nandini Vaidyanathan Samay Shetti Satyendra Naik Sweta Sharma PRESENTED BY
Editorial, Advertising & Administrative Office
Business Goa
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The popular saying for any business model is “if you’re not growing, you’re dying.” Whether you like it or not, standing still is catastrophic for organizations, especially for small businesses. Identifying opportunities for business growth need to take center stage for long-term success. However, growth is elusive and requires a deliberate approach to achieving business objectives. There are two major reasons why experts consider growth as elusive: a. Inadequate consideration of opportunities within the core business, adjacent to the core business or within new customer sub-segments. b. An organizational infrastructure that cannot support successful execution. To be successful and stay in the business, growth and profitability are the two most important factors that a company should consider – it helps them remain attractive to investors and analysts. There are various consequences that your business might face if it lacks growth: a stagnancy and drop in earnings and profits, employees’ income, productivity, business opportunities, and job openings; limited options for innovation; failure of existing infrastructure to support additional complexities; and the inability of your unique selling point to impress customers. However, growth is critical for a company’s long-term sustainability. It is a stage wherein your business reaches the point of expansion and hunts for additional options. Nonetheless, ushering a business from an idea to long-term success is no cake walk. While there is no onesize-fits-all formula for determining optimal growth, it is important to plan growth so that it is controlled. Let us understand why businesses need to grow: Growth is required for sustainability – To sustain means to continuously exist in the industry for a longer period of time. An organization needs to adapt to an evolving business environment and grab opportunities for its sustainability. Growth builds credibility – When a business sustains for a longer period in the industry, it builds credibility in the market. A credible organization attracts new investors, employees, and customers. The approval and confidence of
06 | BUSINESS GOA INDUSTRY DOSSIER | JULY 2022
Harshvardhan Bhatkuly
people can have a direct and profound effect on the main objective of the company. Growth keeps competition at bay – When a business is constantly growing it helps face the competition effectively at all levels while paving way for expansion and diversification. Growth reduces commercial risks – Commercial risks refer to potential losses arising from the market or trading partners. It has become an easy task for well-managed and sustainable businesses to reduce the risk of falling over the precipice. Growth helps innovation – Innovation brings in new products and services while increasing its efficiency and push profitability. It benefits both the consumers and businesses. Contrastingly, a company loses its market share to competitors and falls short of productivity and efficiency if it stops growing at a sustainable rate. Growth reaps partnership and joint ventures – When a business is growing, it often plans for partnerships, joint ventures, mergers, and acquisitions. The benefits are more contacts, increase in market shares, lower commercial risks, broader customer base, favourable financing opportunities, more resources, and a way to enter a new market. Growth retains customers – Popular studies reveal that acquiring new customers can cost a company around five times more than retaining the current ones. Stable growth helps retain existing customers, who are your best bet for increasing sales. Growth impacts profitability – Although growth is not limited to profit alone, it helps achieve and maintain profitability. Even though an organization is good at profitability, there should always be scope for growth since this offers opportunities for greater overall profitability and sustainability in line with customers, analysts, and potential/current investors. Organizations looking to prioritize growth should have a growth strategy and need to plan it carefully. The right strategy is capable of delivering stability, security, and long-term success. Once you have passed the start-up stage, set growth goals, involve management, control costs, and regularly review targets not just to sustain the business but to stay relevant
Printed, published and owned by Harshvardhan V. Bhatkuly and printed at Elegant Offset Printers, D2-31, Tivim Industrial Estate, Karaswada, Mapusa Goa 403526 and published at 409, Citicentre, EDC Patto Plaza, Panaji, Goa 403001. Editor: Harshvardhan V. Bhatkuly
