What Is Organic Growth Strategy?

According to Investopedia, organic growth strategies are business development techniques that grow a company via increased output and larger sales volume. The opposite of organic growth strategies are strategies that include mergers, acquisitions, and takeovers of competitors and complementary businesses. Organic growth strategies are built on four main pillars: revenue, headcount, PR, and quality.

Revenue

Revenue is the lifeblood of any business. Without dollars flowing in, it is impossible to pay employees, suppliers and vendors. Businesses that are growing organically seek to grow revenue volume in the most efficient manner possible. Revenue growth eventually leads to profit growth, which is the end goal of organic growth strategies.
Growing revenue allows for the effective functioning of the other three pillars. Without cash coming into a business, employees cannot be hired and advertising budgets become strapped.

Headcount

As revenue grows, companies can afford to hire more employees. Headcount is critical for any growing business. For customer service, sales and marketing and production departments to function efficiently, they must be properly staffed.
A good HR department is critical to the success of a growing company. Quality is more important than quantity for company headcount, as employees are the biggest asset of any corporation.

PR

Public relations and advertising allow companies to get the word out about their products and services. Good PR drives traffic to company websites and gets perspective customers attention. Good PR strategies also allow for revenue growth to keep those properly staffed departments busy.
Bad PR can be more damaging to a company than good PR can be effective. Word of mouth, social media and traditional PR avenues all must be used and monitored to ensure positive word-of-mouth advertising and branding.

Quality

To successfully grow any enterprise, there needs to be a quality product. Organic growth relies on repeat business from satisfied customers. Customers will rarely buy a product a second time if the first experience isn't top notch. Quality control and customer service are critical to gaining a sufficient sales volume to grow a company.
Quality in a growing company starts with the first contact a customer has with the corporation all the way to the delivery of the final product. Whether it's a website or an in-person sales presentation, the initial contact with potential clients must be top notch. Product quality, customer service and product support need to continue the standard of excellence that the marketing and sales departments begin. With all four pillars growing in sync, organic growth is inevitable.

Popular Companies Using Organic Growth Strategies

Many well-known, public corporations use organic growth strategies. Best Buy, Outback Steakhouse and Tiffany and Company are just a few major brand names that grow every year through organic growth strategies.
Best Buy's main competitor, Circuit City, went out of business in 2009. Outback Steakhouse is the best known steakhouse chain in the United States. Tiffany and Company is the standard in diamonds and jewelry.

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