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What Is Organic Growth?

Today’s post is by Randy Russon, founder of TOPCFOS

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We learn from Investopedia, “Organic growth represents the true growth for the core of the company. It is a good indicator of how well management has used its internal resources to expand profits. Organic growth also identifies whether managers have used their skills to improve the business.” Referring to organic growth, they further explain, “The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.” So, organic growth is all about growing a company internally.

Apple is a great example of a company that has grown organically with very few acquisitions. In my opinion, companies who grow organically usually offer a great product or service along with great customer service. As a result, their sales graph continues on an upward climb. And, there is constant demand for their products or services. This constant demand for their products and services usually results from a very talented management team.

As we all know, water seeks its own level. When great CEO’s surround themselves with other talented individuals, the result is a very talented management team. When talented management teams are unified, they can accomplish great things, and nothing will stand in their way. When Steve Jobs was at the helm, we watched his passion for building great products. One of Steve’s greatest quotes was, “We’re here to put a dent in the universe”. The top people at Apple shared this same passion. How fun it was to watch Apple roll out each version of the iPhone. Apple’s very talented management team continues to build great products people clamor for today. In order for companies to grow organically, there also must be unity and a shared vision among coworkers.

Unity of purpose and a shared vision among coworkers propels companies forward. When everyone shares the same vision and is excited about what they are doing, this excitement carries over to customers who are buying their products or service. This is how companies can grow exponentially. And, this is what organic growth is all about.

We hope you’ve enjoyed our Blog today. Please remember, TOP CFOS are the finest CFO consultants to companies anywhere in the world and would love to be a part of your team. Feel free to reach out to us anytime. Your feedback is most welcome, and we invite you to share this post with friends and associates. During the month of May, we are offering a free service to our readers. We will help you plan some great business strategies for your business here at our office or through a video conference meeting, all at no charge. Our contact information can easily be found here on our website, so give us a call today! Our next post will come from the Customer Service category on our website and is entitled Our Vision. And, thank you for joining us!