What is growth in business?
Business growth is when revenue increases by the same proportion as the number of employees increases. It is the expansion of a company when it adds new products to its portfolio while investing in distribution, marketing, and other efforts to extend its reach.
Thus, we define this as growth when a business produces more than it did last period and can sustain that increased production level. This is one of the main variables to measure a business’s health and potential for increased value.
From the outside, an increase in revenue seems subtle. When a business is growing, they are managing two things at once:
- Increased Revenue Stream
- Increased overhead costs