When it comes to growing a business, the underlying philosophies are all over the place. Some gurus recommend building up a company from scratch and taking your time, and enjoying the process. The idea is that you build a firm foundation, a solid brand and then go from there. If the business is a good one, people will naturally flock to it. 

Then there’s another school of thought that sees approaches like that as madness. You need to grow quickly, they say, otherwise you’ll miss opportunities. The goal of the entrepreneur should be to secure as much funding as possible to take the business to the next stage and reach a “critical mass.”

The first approach described here is what people in the business community call “organic growth.” You’re not trying to force the issue. Instead, you’re coming at it from a different set of assumptions and values. Your view is that if you have value to offer, the business will grow without you even having to try. Customers will spread the word that you offer an incredible service – and they’ll thank you for it. 

Inorganic growth is all about taking risks and seeing how far you can push things. It denies that great businesses will just flourish of their own accord. It sees the world as a hypercompetitive place and that the only solution is to radically scale the company to keep the competition at bay.

So which is right? And which should you care about most? 

It turns out that there are merits to both these views. And it is really down to the entrepreneur to think about which environment suits them best. 

The Pros Of Organic Growth

In a strictly financial sense, organic growth means only using funds generated by the company itself. The form that this takes depends highly on the profitability of the business. Some companies manage to move forwards quickly, just using the profits that they make from revenues. Others take much longer. 

The benefit of this approach is that you don’t have any counterparty risk. You’re not worrying about paying back creditors or whether you’ll get funding for your next mission-critical expansion. Instead, you’re charting a path that relies on the success of your enterprise right now. 

That approach to business can be an emotional boon. You get two distinct senses when you approach it in this way. The first is a sense of confidence that what you’re doing is actually working. Sometimes, entrepreneurs can get a feeling in their gut that the world isn’t valuing what they have to offer. But when your company is making profits right now, you have all the proof you need. It tells you that you should be bringing your model to more people. 

The second sense is one of freedom. When you’re in debt to somebody, you feel obligated to them. And this then creates a sort of tension throughout your entire body. No matter what you do, you always have this annoying thought in the back of your mind that you’re “in the hole” and have to get out of it.

Bootstrapping your way to success, however, avoids this entirely and gives you a sense of peace – just what you need when you’re striving to make your enterprise a reality. 

The Cons Of Organic Growth

While organic growth certainly has its upsides, it also comes with a bunch of downsides too. 

Perhaps the most obvious is the challenge of adapting the business to new demands. Let’s say that you operate a ready-meal company and you sell dishes to people through the post. 

It’s a great business model that’s taking off right now. But one of the complaints is that there isn’t enough variation in the meals. People are eating the same old food over and over again. And it’s not what their palates want. 

At this juncture, the company has a choice. It can either slowly save up money to develop products, or it can approach investors and seek funds for quicker rollout. 

In many cases, the sensible option is to invest and deal with the problem now. Not doing so could lead to loyal customers leaving for another brand. 

The same process occurs when deciding how to fund the development of a new product. Your customers might be asking you to update your lineup. But if you go down the organic route, you can’t just whip up something new overnight. It takes time – sometimes many years. 

Again, here’s where inorganic growth could come in handy. You could just acquire another company that is already making the product you want and start delivering it to people immediately. That way, you could transform the outlook of your business and compete with your rivals more effectively. 

The Pros Of Inorganic Growth

Inorganic growth is what most business advisors prefer. Mainly, this concern comes from a place of fear. They worry that if a company doesn’t scale fast enough, another brand will take its place, and all the spoils will go to a competitor. 

Inorganic growth essentially allows you to get to scale faster and outcompete everyone else in your segment. With funding, you’re able to make your brand more convenient and your products better. Eventually, it doesn’t make sense for customers to go to anyone other than you.

Think about what happened to General Motors when Uber came along. For a while, it seems like Uber was going to gain the upper hand over the legacy car company. Eventually, the unicorn startup would be able to provide a ride-sharing service that negated the need for personal transportation. 

But that’s not what happened. GM hit back by purchasing Uber’s rival Lyft and immediately put itself back in the game. Now that it’s vertically integrated, it’s ready to face whatever changes come down through the car market. If full autonomy arrives, GM could simply create cars itself and then rent them out to people via Lyft, negating the need to make continued private sales (something that other car companies are going to have to do). 

Inorganic growth also makes it easier to open a satellite office to reach new markets. Let’s say that you are currently operating in the US but you know your business has a massive target market in France. In situations like that, it makes sense to open a second office in Europe. That way, you can access markets and generate revenue faster. 

Going down the organic route would be difficult because you’d have to save the funds you need first. But with investor capital, you could do it immediately and begin generating returns. 

The Cons Of Inorganic Growth

Inorganic growth, however, isn’t without risks. There are problems that you’ll need to consider. 

Let’s say, for instance, that you try to grow your company via mergers and acquisitions. You carefully select companies you think will add to your enterprise positively. But, it turns out, that your picks were wrong. The enterprises you bought don’t actually bring you the value that you hoped for. 

In many cases, companies make the same errors as investors. They pick what they think are winning business models, only to discover that they don’t really work. 

There are numerous examples of this from the business world. Failed acquisitions happen all the time, and they put a drag on firms’ overall finances.

Another con of inorganic growth is the sheer cost of it. Startups wind up paying enormous sums of money in interest which can hurt their growth later on. Thus, any company seeking out funds needs to be confident that business will go exponential. They need to have a sense that they’re going to make 10X for every dollar they receive in venture capital. If they don’t, then the debt has a nasty habit of mounting up and up to the point where it actually makes future growth impossible. 

Think about it. What if a startup developed a pair of augmented reality lenses, hoping that they would change the world as the smartphone did. They decided to invest billions of dollars in the project, and then put it out to the market to see whether there were any takers. The product could work. But thanks to the ubiquity of smartphones, there’s a good chance that it won’t.

And that’s the problem with inorganic growth. You’re not getting feedback throughout the process. Instead, you’re taking a punt and hoping that it will pay off enormously.

Which approach you use to grow your business depends tremendously on your objectives and circumstances. Where possible, organic growth might be preferable. Sometimes, there aren’t a lot of people in your space, so you have opportunities to corner the market. In these situations, what matters is your brand, not your ability to dominate the market or get to “scale.” 

In other cases, however, you will need to borrow from others, especially if you have significant capital requirements to get to scale. Often, you can’t afford to grow organically. It’s just not possible in your industry. 

For some, the combination of organic with non-organic works best. 

If you want to be successful when running an online business, you need to have an excellent marketing plan in place. The two are an inseparable combination if you’re looking for growth and profits. Without enough of the right promotion, your business could fail entirely – at the very best, it will fail to thrive in the way it should. With that in mind, what are the best ways to promote your online business to ensure you’re giving it the best chance possible? Read on to find out more. 

Create A Blog 

Blogging might not sound overly exciting in this fast-paced world with so much new and innovative technology around, but a good blog on your website definitely still has its place. Not only is it relatively easy, but it is also the best way to interact with your customers and bring them to your site. Plus, it’s ideal for SEO purposes, ensuring that you have ever-changing content on your site. 

The best thing about having a blog is that you don’t have to use it to sell. In fact, this is the last thing you’ll want to do. Instead, use it as a base for your content which will include all the information your visitors could ever want to know about your sector, showing you to be an expert and helping them to make the purchasing decision that means buying from you. 

Use Social Media 

It seems as though the whole world has at least one social media account, and that’s why your business needs to have at least one too. Do some market research regarding which social media platform (or platforms) is where your target audience is going to be, and then ensure you have your own account there too. Rather than being unusual, social media for business is becoming commonplace, and for a lot of potential customers, it’s where they go first to check out any business they are thinking of buying from. 

You’ll need to keep your social media pages and accounts up to date with relevant information that taps into what people are looking for. This can be a big job to tackle, but thanks to the help of an app marketing agency, this particular task can be done for you, with perfect marketing campaigns designed on your behalf. 

SEO

We’ve briefly mentioned SEO (search engine optimization) above, but we’ll go into some more detail here. SEO essentially means the tactics employed to ensure that your website is at the top of the first page of search engine results when someone searches for a specific keyword or keyphrase. If you don’t put these all-important SEO techniques into practice, you are letting your competition get ahead of you, and the lower down you drop in the SERPs (search engine results pages), the less likely it is that anyone is going to click through to your site. 

Some SEO techniques include:

• Linking to other high-quality sites
• Having changing content on your website (your blog is the ideal vehicle for this)
• Using videos and images
• Using keywords and phrases that your target audience is likely to search for

SEO can become a full-time job, which is why it can be useful to reach out to experts when you need some advice. 

More and more people are now delving into various business ventures online. However, having a physical store to trade your goods and services still proves to be more beneficial when it comes to business growth and stability. When you do have a physical store though, increasing foot traffic is essential because the more visitors that you have, the greater your chances of earning revenue. 

Vinyl Banners and Outdoor Flags

To increase your store foot traffic, you should consider using captivating signage such as vinyl banners or outdoor flags. In this way, you are more likely to capture the attention of people passing by, making them want to come to visit your store and check what you have to offer. The seasoned signage makers behind 1 Day Banner suggest that you use banners not only to advertise your store but to provide pertinent information as well, such as precautionary measures related to the coronavirus pandemic for instance. In this way, your store visitors are more aware of what to do while inside your store, as well as what they can expect.

But the question remains on how effective is using cheap banners in increasing your store foot traffic. Will it work?

The simple answer is that it depends. It can be effective, particularly if it is designed properly and you are using the right banner for your store.

Factors that Affect the Effectiveness of Store Banners

Various factors affect the effectiveness of the banners that you install when it comes to increasing your store foot traffic such as the font, color, as well as images that you use for your banner design. You need to ensure that these factors all come together cohesively to become visually appealing and engaging rather than otherwise. Remember that your banner alone can already create a significant first impression to your target customers.

• Font

In designing your store banner, make sure that you use a bold and readable font, such that people passing by will know what your store is about with just a glance. The size of the text that you use also matters because it determines whether the people will be able to read it or not. However, you need to balance the size of your font with the overall design of your banner. While fancy or complex fonts may be tempting to use, they can lose the focus of your viewers because this type of font may prove to be too distracting.

• Color

Another factor that you need to consider in designing your store banner is the color that you use. Make sure that it is cohesive with your brand to ensure that people will be able to identify your store easily just by looking into your banner. However, you also need to keep in mind that different hues invoke various kinds of emotions and perceptions of different people. For instance, blue is known to create a feeling of trust while red is usually associated with passion or strong feelings.

• Images

The images that you incorporate in your banner can also affect its effectiveness in increasing the foot traffic in your store. Keep in mind that your main goal is to attract the attention of people passing by, which means that visual aids may prove to be beneficial in this case. As soon as you have chosen an appropriate image to incorporate in your banner, make sure that it is of high quality to make your banner simply tempting to look at and attractive. The more attention that you get, the more people are likely to visit your store.

Types of Banners

Aside from the factors that you need to consider in designing the store banner that you will put up, you should also take the time to familiarize yourself with different types of banners. In this way, you will be able to choose the right one that suits your business or store. Some of the most common types that you can consider are listed below.

• Fabric Banners

Fabric banners are usually made of polyester or satin. With fabric banners, you can incorporate full-colored graphics. The best part is that fabric banners are also easy to set up but they are only best used for indoor applications because they can easily be tarnished outdoors.

• Vinyl Banners

A great alternative to fabric banners is vinyl ones that are more durable and tear-resistant. For this reason, they are considered as one of the most popular types of banners that you can conveniently install outside of your store. However, you need to get all the help that you can get because they can be quite heavy to lift and set up. Rest assured that you will still be able to incorporate captivating designs on a vinyl banner.

• Mesh Banners

Mesh banners are also gaining popularity because of their creative designs, making them carry an impressive promotional impact to people passing by your store. They can also withstand harsh winds and inclement weather while ensuring that your store advertisement is intact. 

• Pull-Up & Retractable Banners

If you are looking for a banner to be used inside your store or for a trade show event, then a pull-up or a retractable banner would be perfect for you. The reason behind this is that this type of banner is easy to collapse and transport as necessary. Nevertheless, you can also use them in front of your store as soon as you open up and simply bring them inside when you close for the day.

Using cheap banners in an attempt to increase store foot traffic is effective if it is done properly. In this case, there are various factors that you need to consider such as the font that you use, as well as the colors and images you use in your banner. Apart from these factors, you also need to make sure that you are using the right type of banner for your store. All these are geared towards ensuring that even without shelling out a hefty sum, you will be able to attract customers to visit your store through your banner.