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Level 12 · Part 3

Ways to grow, and their risks

More volume, more products, more customers or a partnership: each has a different risk.

There is more than one way to grow, and the safest way is often the one that uses what you already do well.

Ways to grow and what to weigh (general points)
Way to growOften suitsRisks and demands
Sell more of the same product to existing customersA product that sells out, with steady demandYou need more supply, more capacity and cash for materials
Reach new customers or channelsA reliable product with spare capacityNew channels have new demands on price, delivery and trust (Level 8)
Add a related productCustomers asking for more, shared equipment and skillsAdds complexity, quality checks and cost; test small first
Add a stage of the value chain (for example processing or packing)A business that already knows its customersNeeds new skills, equipment and hygiene control (Levels 4 and 5)
Work with a group or cooperativeSmall producers who cannot reach volume aloneNeeds clear rules, trust and fair sharing
ExportA business with strong quality and recordsMany new requirements and payment risk (Level 11)

Test before you commit

Try a growth step on a small scale for one season. If it works, scale it. If it does not, you have lost little and learned a lot.

Exercise 12.3 · Choose a growth step

  1. From the table, choose one way to grow and write why it fits you.
  2. Write what would have to be true for it to work: supply, quality, customers, cash, people.
  3. Write a small test you could run in one season, and how you will judge the result.

Background reading for this part:

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