Synergy in Business – A new approach to Growth
Globally, businesses are caught up in an unexpected turn of events. The Pandemic has brought with it immense disruptions and unforeseen changes that has halt business growth. Inventories are piled up, manufacturing & supply chains disrupted and demand in a downward spiral, organizations and businesses are striving hard to respond decisively. Entrepreneurs and Founders are in hyper-mode to devise new strategies to ensure business continuity.
A forward-looking, innovative approach to business and sustained team-effort to drive the business is called for. Business leaders and entrepreneurs must ensure democratic & participative processes that goes beyond a simple LLP registration and rather take partnerships forward with the workers.
For organizations who have attained a secure position in their segment, found their market niche, and built a winning team, it is time to take a look at Synergy as a way forward. The business has is operating in efficiency mode, because the team, systems and processes that allow it to operate and make money are in place. Hence the leadership can focus on the next level of growth and business continuity – through Synergy – aimed at multiplying the business. For leaders, to achieve this objective, it is imperative to think beyond the organic growth of the business – they have to think on terms of multiplying the size of the business.
Against this backdrop, for companies whose business is doing well and the firm is thinking of exponential growth, there are various paths to growth that can be explored. One approach that can be considered is Synergy. Let us look at some examples of Synergy in business:
The Merger & Acquisition Route
The Merger & Acquisition route is 1 way to grow the business. This classic example of Synergy planning is to identify business with similar or complimentary operations and joining hands with them. Firms planning to grow fast often consider either a Merger or an acquisition. This enables them to grow faster and grow the business.
Creating New Products/Services
Identifying allied products or services that offer more value when bundled with your existing product line is yet 1 more form of Synergy. To add heft to the existing product/service portfolio, companies can add a new product line or services which complement the existing product mix. They can be a completely new range, but makes the offerings more dynamic. As an example, LegalWiz.in started with the partners’ platform to offer Payoneer deals and other vouchers from corporates to muscle up small businesses.
Expanding to new markets
This form of Synergy entails geographic expansion. Increasing the reach and spread of the organization. The organization can build Synergy by setting up offices in new areas either nationally or globally. This expansion helps the organization to reach a larger number of target segments and hence increases the revenue.
Establishing up a Franchisee network
Yet another form of Synergy – is setting up a franchise network. The organization can create a business format that can be set up and run by others. The franchisees can replicate the business model. The organization can retain control of the core areas of the business but does not need to be involved in the routine day-to-day operations of running the franchisee’s business.
Setting up a related or complementary business
Amongst the more commonly applied tactics in Synergy is starting a related or complimentary business. In this approach, the organization sets up a new business that dovetails & fits in with what they are already doing. Since they already know the market and the nuances of the customer preferences, they have a considerable advantage in operations.
For organizations and leaders planning to take a Synergy approach to growth, it is a pre-requisite to carefully research all the pros and cons. A hasty decision taken and implemented may have a serious impact on the organization’s reputation, market share and revenue. Properly planned, researched and executed, this approach to growth can help organizations to grow as envisioned.
Swapan Dholakia is a senior professional heading the Communications and Outreach at Legalwiz.in. His current interest areas are trade diplomacy,building synergies, and leveraging Communications to impact society & audiences at large.