What is Business Growth
In my conversations with MSME business owners, when I ask them what they think is business growth, their answer is typically about an increase in sales. 99% of them think it is unidimensional and unidirectional. The reality is that growth is always multidimensional and multidirectional. I wouldn’t say that they are wrong. It is just that the mind conceives it like that. It is easier to comprehend.
When probed further, they talk about revenue numbers, customer count, employee count or expansion plans. These are visible indicators, which is why they get maximum attention. But what gets missed are the hidden factors like, delivery readiness, additional capital requirement, office space and infrastructure, core systems and so on.
Growth Challenges
In my opinion, unilateral thinking actually creates the typical problems associated with growth. This is because they have not given equal attention or importance to other factors. For example, the focus is on sales growth but the back-end delivery is not given enough importance. What happens is that there is not enough manpower to meet the additional demand. Short term measures don’t really yield results and this leads to poor customer service and thereby affects the brand and company image as well. Business owners rarely see the cyclical impact it has.
The real issue is that growth is rarely defined before it is pursued. Business owners feel compelled to grow because competitors are growing or because the market seems favourable. Very few pause to ask whether the business can actually handle growth. Growth then becomes reactive, driven by opportunity and urgency. In such situations, direction is lost. Growth should be intentional, aligned to the business’s capacity and long-term goals. Without that clarity, growth amplifies existing problems instead of solving them. This is why many founders say their business grew, but life became harder.
The Different Dimensions of Business Growth
As mentioned earlier, business growth happens across multiple dimensions, not on a single dimension. Some of the other dimensions are
- Profitability - Ensuring better return on capital
- Cash flow - Better cash flow than before
- Team productivity - Ability to do more with the same team size
- Market position - Perceived value in customer minds
- Risk reduction - Bringing in more certainty to business
Most struggling businesses are not short of opportunity. They are short of alignment across these dimensions. For example, sales may grow but operations remain fragile. Profitability improves but market relevance declines. Sustainable growth requires deliberate balance. Founders must decide which dimension needs focus at any given stage. Early-stage businesses may prioritise market and revenue. Mature businesses may need operational depth and cash discipline. Growth is not about doing everything at once. It is about knowing what to strengthen first.
Growth Depends on Business Readiness
Every business has a growth ceiling at any point in time. That ceiling is defined by systems, people and financial structure. Pushing beyond it creates cracks that are not immediately visible. Orders may increase but delivery starts failing. Teams expand but accountability weakens. Cash inflows rise but outflows rise faster. These are signs of growth without readiness. Many founders experience this and assume growth itself is the problem. In reality, readiness was missing. Growth only exposes what was already weak.
Business readiness is built intentionally, not accidentally. I would classify readiness based on 3 aspects -
- Process readiness: Are there right processes in place to handle this growth?
- Financial readiness: Is there sufficient finance to meet this growth?
- People readiness: Are the people trained to handle this growth?
You must understand that you need not wait for the perfect moment and say you will proceed only if all 3 aspects are ready. Chances are that you may stay at the starting line itself. All I’m saying is that you must be aware and have a plan on all 3 fronts. Don’t proceed blindly. Take a conscious call and make preparations on all 3 aspects.
The Founder’s Role in Enabling Growth
Business growth is often limited by the founder’s capacity, not the market. In the early stages, the founder is the engine of the business. Decisions, relationships and execution revolve around one person. This works until complexity increases. Growth then demands a shift in role. The founder must move from doing to deciding. From solving every problem to building problem-solving capability in others. Control needs to give way to clarity. Trust needs to replace constant oversight. Letting go is not a loss of control. It is a change in the type of control.
Founders who enable growth work on the business more than in it.
- They invest time in structure, not just activity
- They define priorities and say no more often
- They build leaders instead of followers
- Most importantly, they upgrade their own thinking.
Growth begins when the founder grows first. Skills that built the business may not be the ones that grow it. Without that shift, the business eventually plateaus.
Measuring Growth Beyond Numbers
Most businesses measure growth using easily visible numbers. Revenue, profit and headcount become default indicators. While important, they tell only part of the story. True growth also shows up in predictability. When outcomes become less dependent on individual effort, growth is happening. Few indicators are subtle but significant. For example,
- Decision quality improving over time
- Fewer emergencies indicate stronger systems
- Customer complaints reducing while volumes increase
- Team stability
Founders should ask better questions during reviews -
- Are we clearer than last quarter?
- Are we faster without being reckless?
- Are we solving higher-quality problems now?
Numbers will eventually reflect these shifts. But by the time numbers change, growth has already happened internally. Measurement should reveal direction, not just results.
When Growth Should Be Deliberately Slowed
Growth is not always the right answer at every stage. There are moments when slowing down is the most responsible decision. Many businesses fail not because they did not grow, but because they grew at the wrong time. Speed without stability creates fragility. Slowing down allows the business to consolidate. It creates space to fix fundamentals. This pause is not a retreat but preparation.
Deliberate slowdown helps businesses regain control. It allows founders to strengthen processes and improve margins. Customer experience can be reset during this phase. Teams can be trained instead of just expanded. Strategic clarity improves when noise reduces. Growth that follows consolidation is healthier. It is easier to sustain and easier to scale. Knowing when not to grow is a leadership skill. Businesses that master this timing survive longer. They also grow better when the time is right.
Conclusion - Defining Business Growth Clearly
Business growth is not a single outcome. It is a journey of increasing clarity, capability and consistency. Revenue is a result, not the starting point. Growth begins with a clear view of where the business stands today and what must change before scaling. For MSMEs, growth has to be intentional and contextual. Blind expansion is not progress. Structured improvement is.
In my work with growing businesses, this clarity is often the biggest missing piece. Once it is addressed, execution becomes simpler and outcomes more predictable. The goal is not to grow fast. The goal is to grow right.
