BUSINESS
GROWTH
Revision
, Benefits of growth
• As a business grows it gains two major
advantages over its smaller rivals,
more influence over market price and they're
big enough to be price setters.
• Economies of scale, meaning that a business
has lower unit costs. They can buy raw
materials cheap and in bulk. Larger businesses
can then charge lower prices or have a higher
profit margin.
• Attract major clients/contacts, more attractive
so more investment from lenders.
• Build a family dynasty and become self-
sufficient .
GROWTH
Revision
, Benefits of growth
• As a business grows it gains two major
advantages over its smaller rivals,
more influence over market price and they're
big enough to be price setters.
• Economies of scale, meaning that a business
has lower unit costs. They can buy raw
materials cheap and in bulk. Larger businesses
can then charge lower prices or have a higher
profit margin.
• Attract major clients/contacts, more attractive
so more investment from lenders.
• Build a family dynasty and become self-
sufficient .
