Imprinting companies’ brand names into the history is hard but to maintain that stature consistently is even harder. To become best of the best, an enterprise must work hard and most importantly in an organized manner. Well considering the growth and development of the company, any enterprise must focus on its annual growth rate. Depending upon the growth rate, there are certain categories in which companies and big enterprises fall into. Categories mostly are normal growth, rapid growth and hypergrowth; where hypergrowth indicates that the company is at its peak of success.
Firstly, let us understand the concept behind hypergrowth and how can it be beneficial to the enterprises.
Dive into the Hypergrowth
Economics experts claim that in order to achieve Hypergrowth, the Compound Annual Growth Rate of the company must be up to and above 40 per cent of the overall annual growth rate. If elaborated, the company must show consistency in maintaining its growth rate above 40% for about more than one year.
Hypergrowth; it, itself defines as….
With the emerging new technological aspects, the enterprises have developed an ability to expand the scale globally in order to maintain constant growth in real-time and future. Basically, this phenomenon is coined as ‘hypergrowth’.
The 40%+ average annual growth rate for more than one year is the perfect status in order to face and uplift the hypergrowth stage. While many consider hypergrowth as a drawback, due to the constant maintenance of growth rate over the years. On the other hand, to achieve rapid growth, companies must sustain the CAGR in between 20-40 per cent, while to achieve normal growth, companies must sustain CAGR less than 20 per cent.
In support, Harvard Business Review expresses hypergrowth as ‘the steep part of the S-curve that most young markets and industries experience at some point, where the winners get sorted from the losers.’
How to Achieve Hypergrowth
Grow with research
This is the first phase of the market; a product has to be innovative and compatible enough with real-time technology in order to increase the sales. Besides, the design and technology should be patented for securing the copyright factors as well as the platform required for the showcase.
More the productivity more is the sale.
In order to get succeed in the business one must focus on the manufacturing unit. In order to meet up with the expectations and demands of the customers, an enterprise must constantly produce and manufacture the products to avoid inflation. Not only the production but also the expansion of the companies plays a crucial role in maintaining the proper growth. The simple methodology to follow is to ‘stretch and grow’, stretch your company to its critical limits and let it grow with time.
Investing more on the ‘packaging’ of the product
Here, packaging indicates the creativity and design of the product. The technology might be innovative and useful but, in order to get more attention, a product must be different and appealing at the same time.
While designing a product, every mode of perfection must be taken into consideration. An attractive design creates a charm in audience’s eyes which leads to the more sales.
Reaching out to other Entities
Networking—in business, it’s really important to make connections. None has ever have uplifted without any support of others. Networking is the best way to generate more customers, as they say so. An enterprise must increase its links and connections in order to process more deals with other big entities. Where, outsourcing is the best example of networking as it reduces the workload and boosts the productivity.
Hypergrowth can Change the Trajectory of the Business
If an enterprise achieves the hypergrowth stage, then there arise the challenges to maintain that status. To uphold the business high in the market, certain strategies and tactics should be implemented by prioritizing below ethics.
Markets and clients—the enterprise must maintain healthy relations with the clients and marketers in order to satisfy their needs.
Technology—technological disruption is a term where the old technology wears out due to the replacement with new advancements. Thus, company should be walking parallel with new upgradations in to increase the efficiency.
Scalability—an enterprise should have an ability to expand at any period without facing the losses. This will boost up, the productivity rate as very less aspect will be affected due to external factors.
Moreover, a company’s vision is the most crucial factor of all. The vision must be inspiring enough to motivate employees in order to work enthusiastically for company’s favor. The motive must be simple but more effective as the purpose of the company will determine its desires for the future.
– Bhushan Ghate