1.5.3—Reasons to grow

Businesses may grow to increase market share, revenue, profit, survival, economies of scale or market power, but the benefit depends on the cost and context of growth.

Growth can spread fixed costs, strengthen bargaining power and make the firm harder to displace. It can also require debt, reduce flexibility or create diseconomies, so “grow” is not an objective without a reason and measure.

State the reason, the expected mechanism and the risk that could prevent the benefit.

A solar installer expands to win regional market share; more volume may lower equipment cost and improve bargaining power. If expansion requires expensive debt before demand is secure, survival may worsen instead.

Growth is not automatically success: explain which objective improves and when.