Currently the CEO of Synergy Life Science, Chris has 25 years of experience creating, distributing and supplying quality ingredients.
Employing strategies of phased growth can be immensely helpful when running and growing a business, whether you work in an unpredictable industry or are responding to volatile economic conditions.
In unstable industries, companies regularly have to respond to changes in legislation, best practices and consumer demand—often with very little turnaround time. With many years of experience working in the personal care and cannabis industries, both of which see rapid change, I have made gradual growth work for me and my businesses.
What is phased growth, and how can you implement it?
Phased growth refers to incrementally launching each stage of your business instead of setting everything into motion simultaneously. You can incorporate this strategy into your business plan in several different ways.
• Launch different branches of your company sequentially rather than simultaneously.
• Roll out your product line slowly.
• Allow for flexibility in your plan—or plans—of action.
• Keep a close eye on market trends and be ready to respond with your next growth phase.
• Build a strong brand identity that will allow you to pivot while remaining true to your mission.
What are the potential benefits of a phased growth strategy?
Based on my experience, here are five of the most significant benefits of deploying incremental growth strategies.
1. Keep your initial investment low.
Unpredictable industries can be highly profitable when everything lines up correctly, but starting a company in these industries can be risky. I have led successful businesses in the challenging pharmaceutical and cannabinoid ingredient industries, and my risks have panned out because I have prioritized gradual growth over a one-and-done approach to launching my businesses. Employing strategies of phased development can allow you to enter the market and begin making your mark on the industry with a lower upfront investment and, therefore, incur less financial risk.
Incremental growth allows you to fund different stages in your company’s growth at planned times. While you will need some start-up capital, you can begin attracting clients and customers at smaller initial investment rates. As your company grows, you can fund each successive stage one at a time, keeping costs low and adapting to changing regulations, market trends and situations with minimal capital loss.
2. Coadapt with an industry.
Phased growth also allows companies to adjust as necessary to adapt to changes in the industry. When growing incrementally, you can accelerate, decelerate or pivot as needed to stay current and compliant.
3. Stay afloat in fast-moving legal landscapes.
Slow-paced growth allows you to react quickly to changes in regulation, public perception and enforcement. For example, the recent news that THCo is not protected under the 2018 Farm Bill came relatively suddenly. I saw how companies in the cannabis industry with a multileveled phased growth model were able to respond more quickly to this news, halting their development of products and changing their approaches as necessary.
4. Respond quickly to consumer trends.
Gradual growth will also allow you to respond quickly to consumer and market trends, which are often incredibly impactful in uncertain industries. My company routinely waits to release products until we have ensured that the market is primed for our new technology through extensive planning and research. It may be tempting to premiere an exciting product the moment it’s done, but it’s best to wait to introduce the next phase of your business until all factors align.
5. Balance short- and long-term goals.
Finally, an ethos of more gradual development enables you to create short-term plans and adapt to an ever-changing industry while staying true to your long-term goals for the company.
Your ultimate goal might be to grow your company for the next decade or more, but you must break that down into smaller steps. The landscape will likely undergo multiple changes while you pursue your overarching goal, so making more short-term goals and being prepared to pivot between them if necessary is essential.
In closing, the benefits of gradual growth don’t only apply to companies in uncertain industries like cannabis and pharmaceuticals. Companies in any sector can employ principles of incremental growth in their business plans to run their organization more efficiently overall. Whether you choose to fully embrace an ethos of slow-and-steady growth and development or just keep these principles and benefits in mind while conducting business as usual, phased growth can be a game-changer for the stability and success of any company.
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