Growing means moving from one stage to a better one, and that’s what you definitely want for your business. Growth for your business means more than just profits and sales, it encompasses more things that allow your business to be considered a success. Growth is aligned with economies of scale, this means as the business becomes more efficient it gains some advantages, such as decreasing costs. Business Growth is a stage where the business reaches the point for expansion and seeks additional options to generate more profit. Business growth is a function of the business lifecycle, industry growth trends, and the owner’s desire for equity value creation. Growth is crucial to the long-term survival of a business. It makes it easier to acquire assets, attract new talent, and fund investments. It also drives business performance and profit.
Why is growth in business important?
Growth can be good for business for many different reasons. For example, it may allow you to:
- take advantage of new opportunities
- expand your products or services
- attract more customers
- increase sales
- employ more staff
Reasons for business growth
Most businesses grow to become bigger, perhaps through increased sales or market share, but the size isn’t the only driver. Many other benefits motivate businesses to grow. For instance:
- greater sustainability or resilience in the market
- lower costs – due to economies of scale
- greater market dominance
- increased buying and bargaining power
- ability to mitigate commercial risks – eg through diversification
- reducing the threat of competition
- surviving market fluctuations and downturns
- attracting the best talent and staff
How to grow your business:
1. Check your cashflow
Cashflow is the total amount of money that moves in and out of the business. Knowing and understanding your business’s cash flow gives you the ability to forecast financially. If you want your business to grow plan and invest wisely.
2. Review your day-to-day processes
Understanding your business system allows you to make your business more efficient. Improvement in processes is relevant in growing your business.
3. Scout your competition
It’s important to know your position within the market. Doing a S.W.O.T analysis (strengths, weaknesses, opportunities, and threats) maps out your direction and how you can work around the competition.
4. Prepare your team
Having a team of committed and skilled employees is an essential part of any business, particularly one that plans on expansion. If you want to grow your business, first take a step back. Ask yourself:
• Is the right team on board?
• Are my people skilled?
• Do they feel sufficiently rewarded?
• What can I do to keep staff and help them feel more committed?
• Have I planned for staff turnover?
Think about how you can prepare your team for change and company growth.
5. Bring in external experts
It’s always good to get a fresh perspective from a trusted outsider. Ask an expert to review your business operations or your marketing strategy. Get someone skilled and knowledgeable who is comfortable giving honest, constructive feedback you can use to improve your business.
There’s no easy shortcut when it comes to growing your business. Instead, it takes hard work and plenty of research, planning, and investment. Use this checklist to grow your business and succeed.