So before we discuss different strategies that will help you in achieving organic growth, we're going to find out why it might be good to be a bigger firm rather than a small one. And how growth links together with profitability. So how are growth and profitability related? Why is it good to be big? Well, small firms have a number of limitations. And specifically they're gonna be limited in their access to cheap capital. Their R&D capabilities are going to be limited, and their gonna find it hard to find alternatives for patented technologies. Supporting a sales organization that has a sufficient scale to meet customers demands is gonna be more difficult for a small firm. And of course, finally you want to capture the confidences of your customers through extensive advertising. And that's going to be more difficult if you're a small firm that doesn't have the advertising reach of larger ones. Large firms on the other hand, are more likely to be able to control sources of supply. So you simply have a certain degree of power the potential inputs that you need. You can spread your risk by operating in more than one market. So if one market goes down, so if one market isn't doing very well, the other one is likely or there's a chance that the other one is going to do much better. You can bear the high cost of entry into a new area. Which basically gives you financial economies that you're going to benefit from. And finally you can also resort to a broader variety of managerial capabilities and capacities and the technical skills. So you basically got managerial economies if you are a large firm. You can also make sure of economies of size, meaning scale, scope, and so on. So these would be technological economies. How does growth and profits hang together? Well, you're basically facing a cycle of reinvestment and reimbursement. The prospective profitability of expansion will need to be closely investigated. Reinvesting into the firm is likely to lead to long running increase in reimbursement. So, if you reinvest You're gonna have to reinvest again, and you're gonna look for a payback time as well. Long-run profits are therefore going to be translating into a long-run rate of growth. So the more money you make, the more you can reinvest, the more you can secure long-term profitability. So therefore, it doesn't make a lot sense to just invest in expansion just for the sake of growth, if the return on investment is clearly negative. So just growing for growing's sake, is no good. On the other hand, growing if it's profitable, growing if you generate profits for which you can then reinvest again, is going to be a smart move. Okay, so let's now continue with the next video, in which we'll find out how we can achieve internal growth.