Characteristics of growth companies

    The word or concept business growth has been defined differently according to different groups of people as follows:

      

Financial interest people: these group of people define it as the increase of profitability or share value as the great turn over, thus according to them just the increase of profitability is the growth of the business.
      

Business analysts: they have defined business growth in the context of broader range, increase number of customers or of patents.
      

 Researchers: they have expressed it as the increase or growth of employment, thus to this group when the number of employees increases than before then it is a sign that the business has grown.
      

 Customers: according to customers when the standard of services increases or develops, improvement of quality products and services indicates that the business has grown.
     

 Individual small business owners: consider business growth as being the major local employer thus when the business employ more local people is the growth of business, also building large income, providing employment to family and the gaining of profit.

The following are characteristics of growing company as explained with vivid examples here under:
According to a London report of 1989 mention six characteristics or common factors associated with successfully business growth
      

·        Experience owner manager with a good knowledge of market and industry: thus for any successfully company there must skilled and experienced management for the running of the company, Examples for TBL to be the leading beverage and alcoholic distributer in East and central Africa is due to it good management.

   

·       Close contact and commitment to customers: there must be close contact and full commitment to quality of products and services as high profit margins were obtained or achieved through competing on services rather than on price, Example providing customers with interests once maybe debts are returned within a given period.

      

·       Innovation and flexibility in market and technology: there must be innovation in technology and flexibility in market as this gives a different advantages over their competitors in the market Example transfer of a company from old system of ordering goods through checque and invoices.

     

·        Focus on profit rather than sales with good management system controlling costs: the company should focus on profit rather than sales. There is the old adage or say that “Turnover is Vanity and profit is sanity accounts added cash flow is reality.

      

·       Attention to good employee relations often backed by a bonus scheme; there must be good relations between the company or management with its employees so that to ensure efficiency and creativity in the making and distribution of goods and services

       

·       Operating in a growing market supporting opportunities is something that Entrepreneurs are good at: the company must operate in a faster rate growing market Example in Tanzania one among the Markets that grows very fast is Cigarette and alcoholic markets thus the companies investing in it will generate a large income.

       

Also a growth company usually focus on clear objectives set ahead with a strong emphasis on forecasting financial data on regular and timely basis particularly cash flow but also profit and sales.