Understanding and Harnessing Organic Growth

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is Organic Growth in Business?
How Does Organic Growth Work?
Inorganic vs Organic Growth
Investment Analysis
Pros and Cons of Organic Growth
Pros and Cons of Inorganic Growth
Measuring Organic Growth
Organic Growth Strategies
Investing into existing products or services Developing new products or services through research and development (R&D) Enhancing your sales and marketing strategies Targeting customer profiles and pricing structure Launching a rebranding initiative Restructuring the organization and its processes Cutting costs
Inorganic Growth Examples
Combining with a similar company to increase market share Acquiring a company that has products, services, and/or a customer base that your company wants to have Merging with a dissimilar company to create a conglomerate Opening in a new location to bring in customers in a geographical area where you’re not currently represented
The Takeaway
3 Small Business Loan Tips
Online lenders generally offer fast application reviews and quick access to cash. Conveniently, you can find recommended small business loans by using Lantern by SoFi. Traditionally, lenders like to see a business that’s at least two years old when considering a small business loan. If you need to borrow money to cover seasonal cash flow fluctuations, a business line of credit, rather than a term loan, provides the flexibility you likely need.
Frequently Asked Questions
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About the Author
Mike Zaccardi, CFA, CMT, is a finance expert and writer specializing in investments, markets, personal finance, and retirement planning. He enjoys putting a narrative to complex financial data and concepts; analyzing stock market sectors, ETFs, economic data, and broad market conditions; and producing snackable content for various audiences.
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