Ever wondered how your favourite brands grew from small startups...
Business202 views·Updated 7 Aug 2026·2 pagesBoosting Your Business Growth with Effective Strategies
tia@tiaxdaley
1
of 2
Business Growth Strategies
When businesses want to get bigger, they've got two main options: grow on their own or team up with others. Internal growth happens when companies expand by themselves - think of how Netflix started with DVDs and then created their own shows, or how Apple keeps launching new products.
External growth is much faster because businesses join forces. A merger is like two friends deciding to work together as equals, whilst a takeover is when one company buys another by purchasing enough shares to control it.
There are four types of external growth depending on where companies sit in the supply chain. Horizontal mergers join businesses at the same level (like two rival phone companies), whilst vertical mergers connect different stages - backward means joining with suppliers, forward means joining with customers. Conglomerate mergers are when completely unrelated businesses team up.
Quick Tip: Think of it like a food chain - businesses can merge with those above them (suppliers), below them (customers), beside them (competitors), or from completely different chains!
2
of 2
Financing Business Growth
Growing a business costs serious money, and companies have both internal and external ways to fund expansion. Internal sources come from within the business itself and don't create debt.
Retained profit is the safest option because it's money the business has already earned - no interest payments or risk involved. However, profits aren't guaranteed and might not cover massive expansion plans. Sale of assets provides quick cash by selling things like old machinery or excess stock, but then the business loses those assets forever.
External sources bring in outside money but come with strings attached. Loan capital means borrowing from banks with fixed repayments and interest charges, usually secured against business assets. Share capital works for PLCs (public limited companies) who can raise huge amounts by selling shares to investors.
Remember: External financing is faster but riskier - selling shares means giving up some control and profits to shareholders, whilst loans create debt that must be repaid regardless of how well the business performs.
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Business202 views·Updated 7 Aug 2026·2 pagesBoosting Your Business Growth with Effective Strategies
tia@tiaxdaley
Ever wondered how your favourite brands grew from small startups to massive companies? Business growth is crucial for success, and there are clever strategies that companies use to expand - some grow naturally whilst others join forces with competitors or...
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Business Growth Strategies
When businesses want to get bigger, they've got two main options: grow on their own or team up with others. Internal growth happens when companies expand by themselves - think of how Netflix started with DVDs and then created their own shows, or how Apple keeps launching new products.
External growth is much faster because businesses join forces. A merger is like two friends deciding to work together as equals, whilst a takeover is when one company buys another by purchasing enough shares to control it.
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2
of 2Sign up to see the content. It's free!
- Access to all documents
- Improve your grades
- Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Financing Business Growth
Growing a business costs serious money, and companies have both internal and external ways to fund expansion. Internal sources come from within the business itself and don't create debt.
Retained profit is the safest option because it's money the business has already earned - no interest payments or risk involved. However, profits aren't guaranteed and might not cover massive expansion plans. Sale of assets provides quick cash by selling things like old machinery or excess stock, but then the business loses those assets forever.
External sources bring in outside money but come with strings attached. Loan capital means borrowing from banks with fixed repayments and interest charges, usually secured against business assets. Share capital works for PLCs (public limited companies) who can raise huge amounts by selling shares to investors.
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