Exponential or Incremental Growth – Which is Best for Your Business?

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In today's rapidly evolving printing industry, business owners face a critical strategic decision: whether to pursue steady, incremental growth or embrace a more aggressive, exponential growth trajectory. Both options carry risks – and I’m not convinced there’s a wrong answer here. There are many factors which go into determining what your best strategy should be. A few of these include a thorough market analysis of your current and future space, taking a hard look at the competitive landscape, and understanding the success factors required to achieve either strategy.

Market Analysis

Your strategy planning session has unveiled a few different sectors of the market for you to consider. Some of these are extensions of markets where you already are, and you’re looking to leverage your existing success for future success. Or you may be looking at completely new verticals you would have a competitive advantage in.

Don’t venture into anything blindly or without doing your due diligence. Determine what and where the opportunities are, and what barriers to entry there may be.

Competitive Landscape

Who are the key players in those markets today, and how do you stack up against them? What value, or unique positioning will you be able to offer to potential clients? One question I always like companies to be prepared to answer from a prospective client is “what do you do and why should I care?” Chances are you will never be asked that direct question, but if you are prepared to answer it, you have already done your homework. If you are not prepared to answer it, keep working at it until you can.

Another factor to consider is what are the clients in that market really looking for, and are you prepared to deliver the goods? What type of problems will you be able to solve with the products and services you provide? Will it require additional capital investment, different skill sets from your team, or perhaps a long ramp up time which may burn through cash at a rate you didn't anticipate?

Success Factors

You and your team should determine what the critical success factors you’ll need to witness as indicators of your progress. These can be categorized as short, medium, and long-term. They can also be both subjective and objective metrics, and should align with the key performance indicators (KPI) or objectives and key results (OKR) you currently use to lead your business.

Lastly, I encourage you to review your current market position and have a thorough understanding of the available resources you have at your disposal. Look at the capabilities and skill sets of your team. Your tolerance for risk will also play a significant factor in the path you choose. Finally, your access to capital and the timeline expectations should be carefully reviewed and built into your plan.

The choice between exponential and incremental growth depends on various factors specific to your organization. I have only scratched the surface of the issues you should consider when determining your growth path. More than anything else, I hope that this has either validated your current trajectory, or give you pause to think differently about the approach that you were taking.