Unleashing Potential - Maximising Growth by Concentrating On Your Core Business
Introduction
Business growth both a goal and a journey. A journey lined with challenges, triumphs, and transformations. But where should the focus lie in this journey? Is it in expanding into new markets? Diversifying product lines? Or maybe it's investing in new technology? While all of these strategies have merit, there's one often overlooked source to maximising business growth: focusing on your core business. Most privately owned businesses have relatively small market shares in their core markets, so there is considerable room to grow. This approach has seen companies, large and small, scale their operations and surge ahead in their respective industries. But what does focusing on the core business mean, and how can it unlock potential for growth?
The Core Business: Understanding the Concept
At its heart, a company's core business refers to the main service or product that a company is known for, the one that sets it apart from the competition. It’s what you are good at and have a competitive advantage and it's where your company's resources and efforts should be concentrated to fuel growth. By emphasising your core business, you're investing in what you do best, reinforcing your unique selling proposition (USP), and deepening your foothold in the market.
Consider companies like Apple, whose core business revolves around creating innovative tech products with exceptional design and user experience(1). Despite venturing into other domains such as services and entertainment, Apple's focus remains steadfast on their core, which has driven their phenomenal growth over the years.
Why Focus on Core Business?
Enhances Competitive Advantage
When you channel your resources and expertise towards your core business, you strengthen your competitive edge. It's about refining your strengths, honing your USP, and offering unparalleled value to your customers.
Fuels Innovation
Innovation isn't just about diversifying; it's also about enhancing what you currently offer. By focusing on your core, you open avenues for improvement and innovation within your existing products or services, which will drive customer satisfaction and loyalty.
Streamlines Operations
Focusing on your core business means stripping away the non-essential parts of the business, allowing you to streamline all your operations (including administration), improve efficiency, and reduce overheads. This lean approach can boost profitability and enable faster decision-making.
Mitigates Risks
Venturing into unknown territories comes with high risk. By concentrating on your core business, you mitigate these risks as you operate within familiar parameters, drawing on your existing knowledge and expertise.
Implementing the Core Business Focus: Strategies to Consider
Conduct a SWOT Analysis
Identify your strengths, weaknesses, opportunities, and threats. Understanding where your company stands is critical in aligning your focus(2).
Revisit Your Business Plan
Your business plan should align with your core business. It's not a static document but should be revisited at least every quarter and tweaked to reflect your focus on the core.
Outsource Non-Core Functions
Consider outsourcing functions that don't fall within your core business. This strategy allows you to focus on what you do best. Some administration tasks can be outsourced leading to increased efficiencies.
Invest in Core Technology
Leverage technology that can augment your core business, be it CRM for customer relationship management or AI for data analysis (3).
Emphasising the Core: A Step Towards Growth
It's easy to get carried away with diversification and expansion. Yet, the key to business growth may lie closer than you think – within your core business. By focusing on what you do best, refining your strengths, and streamlining your operations, you lay the groundwork for sustainable growth.
However, focusing on the core doesn't mean stagnating. It means constant evolution within your markets, innovating, and enhancing your core offerings, and maintaining your competitive advantage.
Ultimately, maximising business growth by focusing on your core business isn't about putting all your eggs in one basket. It's about recognising where your potential truly lies and nurturing it. The journey towards growth begins at your core – it's time to start developing it.
References:
Isaacson, W. Steve Jobs. Simon & Schuster.
Fine, L. G. The SWOT Analysis. Lightning Source.
Davenport, T. H., & Ronanki, R. Artificial Intelligence for the Real World. Harvard Business Review.
Author: Andrew Jones, Director nem Australasia.
This article is based on research and opinion available in the public domain.