There has been a great deal of buzz lately around the idea of hypergrowth. Yet what is actually meant by this term, and why should it matter to business leaders?
The concept was coined by the Harvard Business Review in 2008 as “the steep part of the S-curve that most young markets and industries experience at some point.” While the definition has evolved somewhat since, this imagery still effectively encapsulates the point at which new companies face accelerated development and expansion.
The World Economic Forum states that hypergrowth occurs when an organization’s Compound Annual Growth Rate (CAGR) exceeds 40%, and maintains this level for at least one year. A company’s typical CAGR is around 20%, and those businesses categorized as achieving “rapid growth” have a CAGR between 20% and 40%.
Rather than simply covering high CAGR, the phase also indicates that a company is delivering expansion on a truly global scale. This involves making use of technology in order to ensure it is able to continue to dominate and grow in the future as well as the present.
Why it matters and how to achieve it
Entering this phase is a clear indication of runaway success, but this period can also have a transformative effect on how the company develops in the future. The direction and ethos that is established at this point can be highly influential going forward.
Achieving this phase is no easy feat, and there are a number of factors involved. The first and perhaps most important of these is centered on the product or service being provided by the company in question. Focussing on market research, and ensuring that the offering is innovative and viable are key at this point.
Next up is a scaling up of the manufacturing process, ensuring that the product is packaged distinctively and attractively, and networking or outsourcing in order to foster profitable relationships with other brands.
What are the risks?
Of course, achieving this coveted phase is down to considerable analysis and careful timing. By attempting to expand too quickly, companies risk overreaching their operational capabilities or financial limits, which can quickly lead to grave consequences. Staying in control is imperative if you want to achieve high CAGR.
There are other ways to help your business succeed and promote extreme growth, too. Focussing on developing a great workplace culture will help to both attract and retain the valuable talent you will need at this time. Stay consistent, and don’t rush to fill key vacancies. Instead, always choose to hire the best candidate, who will fit in with the exact needs of your brand and vision.
The Right Support
Finding this ideal talent can be easier than you think. When you partner with Coltech, you can be assured you will be matched with the talent you need for both achieving extreme growth, and looking forward to building a successful long-term future.
Our experienced specialists can source the perfect candidates for any stage of your business’ development, who can share your vision and goals for the next step. Discover how we can help your business.
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