Organic growth, the process in which a company expands using its own resources, is often seen as safe and secure growth for a business on the uphill climb.  This natural growth is a slow and steady process, where revenue is built from the company’s existing operations.

You should, of course, take the necessary steps to ensure that you are growing in your own capacity.  No matter the industry, your output should be generating sales to facilitate your growth.

However, if you continue solely on this track for a while, you may soon see yourself reaching your maximum output; in other words – a dead-end.

Take the classic example of a retail store.  There is only so much foot traffic that can be expected, even at peak season.  Plus, in the event that there’s an extra influx of shoppers, there are space capacity limitations to consider. This makes it nearly impossible to exceed a certain number of orders per day.

A second example:  The income of a marketer, who is working a one-man operation from his den, may be enough to pay his bills.  And yet, even with a steady stream of clients and extended workdays, there is a definite maximum of projects he can expect to execute in a week.

With time, both of these businesses may feel maxed out.  That’s because there’s a limit to organic growth.  Once they’ve hit their peak, a business can reach a chokepoint. With nowhere to grow, how do you progress?

Both of these businesses can now benefit by taking the leap to inorganic growth.  In order to increase their output, the retail store should look into acquiring a second location or an ecommerce store, and the marketer should seek to become a full-blown agency in a professional setting.

Growing a business inorganically usually includes additional investment in equipment, personnel, and location.  This type of growth definitely involves some risk along with getting a line of credit or a loan. However, this puts you on the fast track as opposed to reaching a dead-end on the slower track.