growth potential definition

Contributor(s): Rachel Lebeaux

Growth potential is an organization's future ability to generate larger profits, expand its workforce and increase production. In the business sense, an organization's growth potential depends heavily upon its leadership's expectations for success, and the quantitative and qualitative measures used to determine expansion readiness.

Growth potential can be gauged from an organization's planned movement into new markets, the development of new product lines, the employment of more effective marketing techniques, or other methods that grow a business from a niche market to a more volume operation. Growth potential is often a barometer for investment interest from public and private investors, venture capitalists and other stakeholders.

This was first published in November 2012

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