1. Warm up read pp

2. Entrepreneurship
Growth Strategies
Presented By
Mrs. Bowden

3. Today we will:
Discuss growth stages of businesses and growth strategies for your products and services.

4. Business Growth: The gradual build up of sales and profits
The major steps that a business may take to dramatically increase sales
ORGANIC GROWTH – achieved by expanding your business internally – ex. Adding new products or services.
EXTERNAL GROWTH – achieved by buying or merging with other businesses

5. Deciding when to grow: Condition of the business Economic climate
Life goals of the Business Owner

6. Product life cycle:
Series of stages that a product goes through – this can help us decide our growth strategies

7. Product Life Cycle:

8. Product Life Cycle:
Introduction – marketing effort is devoted to building awareness Expensive phase so PROFITS are ALMOST ZERO Sales are extremely low
Growth – sales and profits increase rapidly and steadily
Maturity – Sales and Profit both reach a peak (decision to grow)
Decline – sales and profit begin to decline – how can we revive?

9. Growth Strategies:
Intensive – cultivate a brand new product or a new market to sell in Ex. Apple
Integrative – blends businesses together – Target | Starbucks
Diversification – offer products that are different from its core offering ex. Walmart/gas or a clothing store that now sells shoes

10. Setting Goals:
Business growth is not possible unless you set short term goal and long term goals
Short term goals – effect the business immediately
Long term goals – effect the business in the long run (growth strategies Intensive, Integrative, Diversification)

11. Setting Goals – Let’s Practice:
Decide on short term goals for your business
Decide on long term goals for your business
Record these on your worksheet

12. Exit Strategies: WARM UP - READ p. 587-598
Why would entrepreneurs not want to retire?
Emotionally attached
Like being in charge
Can’t give it up
Scary
Reflection of who they are

13. Exit Strategies: Why would entrepreneurs want to retire? Too physical
Want to enjoy your success/money
Tired
Loosing money
Relax
Stressed
Travel
Can’t keep up
Hobbies

14. Exit Strategies:
What are ways that we can choose to exit our business?
Employee Stock Ownership (sell your shares of stock to pay for retirement for employees)
Sell it
Sell our portion to our partner
Management buyout
Family member
Liquidate
Franchise

15. Exit Strategies: Project work day.p.207
Write about your Growth strategy – Include Goals both short term and long term and your exit strategy