Key Takeaways

  • Corporations can grow through market expansion, product diversification, and operational efficiency.
  • Legal structures like mergers, acquisitions, and franchises can accelerate growth.
  • Strategic innovation and customer retention play a vital role in sustainable development.
  • Regulatory compliance and governance are essential to supporting long-term expansion.
  • Globalization and exporting present major growth opportunities for established corporations.

How does a corporation grow? Growing your business isn't just an obvious and worthwhile goal; it can also secure your business's survival and your own financial future.

How to Grow Your Corporation

  1. Maximize your existing market

    Your first thought when it comes to growing your business might be to attract new customers, but the truth is that your existing customers are your best bet for growing your sales. It's simpler and more cost-effective to persuade current customers to buy more from you, than to find new customers and persuade them to buy for the first time. In fact, it costs three times as much money to obtain new customers as it does to sell to an existing customer. Other sources mark this number as four to ten times more!

    Creating a customer loyalty program can be a great way to keep your customers coming back. In addition, it may help you acquire new customers as well. Providing an attractive incentive for your customers to spend more money with you has long-term benefits.

    Another technique to maximize your current market is to build an email list. Here you can offer customers exclusive deals and perks while simultaneously keeping your company in their minds. Email lists offer a personal touch and can strengthen your company's image.

  2. Request referrals

    Although growing your business through existing customers is your best bet, that doesn't that attracting new customers isn't a valid approach of its own right. Keep in mind, though, that customers aren't likely to simply spread the word about your business on their own. Kindly and actively seek referrals by asking your customers after every sale or service rendered if they know anyone who might be interested in your business's products or services.

  3. Develop new uses for your product or service

    Innovation is a fantastic way to get both new and existing customers interested in your offerings.

  4. Expand your market reach

    To reach more potential customers, expand your market to new locations or demographics. The most obvious ways to do this are to open additional stores in new locations and to increase your advertising range. Try marketing to different demographics. If you want to reach young people, social media may be your best venue.

  5. Participate in conventions and trade shows

    Conventions and trade shows have the unique advantage of attracting people who are already interested in the kind of service or product your offer, which can naturally impact your bottom line. Keep in mind that finding the right convention or trade show for your business is the key to success in this arena.

  6. Take over a niche market

    This strategy relies on the concept of “a big fish in a small pond.” Narrow your group of customers to those who desire a particular product or service that is currently unavailable, and then meet that need through specialization.

  7. Lower your costs

    Don't forget that increasing your bottom line can be achieved by lowering your overall expenses. The difference between pre-and post-tax money proves this strategy to be a very effective one for business growth. The most impactful ways to lower your costs are liquidating your weak products and improving the turnover of your inventory.

    Take a look at your operations and identify where you can lessen expenses by automating back-of-house activities like ordering supplies or sending invoices. Be careful not to automate customer interfaces too much, as you'll lose the personal touch that many customers appreciate.

  8. Diversify your offerings

    To maximize growth through diversification, focus on similarity. Your market will typically want a particular kind of product or service. For example, if your market is the adventurous, outdoor-loving type, you might sell mountain bikes during the summer and skis and snowboard during the winter. Perhaps you could even partner with a white water rafting company and give referrals that return a commission to you.

  9. Franchise

    If your business is successful and its operations can be duplicated, franchising is a worthwhile option. Many small-business entrepreneurs have become well-known and wealthy through franchising their company.

  10. Pursue Strategic Innovation and R&D Investment

    Innovation is a key engine of corporate growth. Developing new technologies, products, or service models not only attracts customers but also helps differentiate a company from its competitors. Corporations that invest heavily in:

    • Research & Development (R&D)

    • Intellectual Property Protection (patents, trademarks)

    • Digital transformation and automation

    often outperform their peers in long-term scalability. Innovation can also extend existing product life cycles and create entirely new revenue streams.

  11. Export your products

    Like franchising, exporting requires a significant commitment of time and resources, but can be a highly rewarding way to grow your business. Reaching international markets can significantly boost your company's bottom line.

  12. Ensure Compliance and Good Governance

    While growth is a primary objective, corporations must ensure that expansion complies with regulatory frameworks. Corporate governance—including a board of directors, shareholder rights, and transparent accounting—serves as the foundation for lawful and sustainable growth. 

    Good governance practices promote:

    • Ethical decision-making

    • Accurate financial disclosures

    • Protection of stakeholder interests

    Neglecting corporate compliance can result in penalties, reputational harm, or loss of licensure, which can derail growth initiatives entirely.

  13. Globalization and Entry Into Foreign Markets

    One significant way corporations grow is through international expansion. By entering foreign markets, businesses can access new customer bases, tap into cost-effective labor and materials, and establish a global brand presence. Methods include:

  • Forming international subsidiaries
  • Licensing technology abroad
  • Establishing overseas manufacturing or sales offices

However, international growth also requires navigating complex international trade regulations, foreign tax laws, and cultural considerations. Consulting international business law experts can help mitigate risks.

Leverage Legal Structures for Corporate Expansion

Corporations often utilize legal mechanisms to facilitate growth, particularly as they transition from small businesses to larger enterprises. Common legal strategies include:

  • Mergers and Acquisitions (M&A): Corporations may acquire or merge with competitors or complementary businesses to expand market share, diversify product lines, or enter new geographic markets.
  • Reorganizations and Spin-offs: A corporation may restructure by consolidating departments or creating spin-off entities to streamline operations and foster specialized growth.
  • Joint Ventures and Strategic Alliances: Partnering with other companies for shared projects or market access allows corporations to leverage mutual resources and expertise while mitigating risk.

These legal structures can be complex, often requiring consultation with corporate attorneys to ensure compliance with federal and state laws regarding fiduciary duties, antitrust considerations, and shareholder interests.

Frequently Asked Questions

  1. In what ways do corporations grow other than increasing sales?
    Corporations can grow by expanding into new markets, acquiring other businesses, franchising, investing in innovation, or improving operational efficiency.
  2. What is the difference between organic and inorganic growth?
    Organic growth comes from internal improvements like increased sales or productivity, while inorganic growth results from mergers, acquisitions, or partnerships.
  3. How do legal structures like mergers support corporate growth?
    Mergers allow corporations to consolidate resources, enter new markets, reduce competition, and achieve economies of scale.
  4. Why is corporate governance important in business growth?
    Strong governance ensures compliance with regulations, promotes ethical operations, and builds investor confidence—all crucial for sustainable growth.
  5. Can small businesses use the same growth strategies as large corporations?
    Yes, although the scale differs. Small businesses often begin with customer retention and market expansion, while corporations may pursue franchising, global trade, or IPOs.

If you need help understanding how a corporation grows, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.