Experiencing a period of rapid business growth can be an exhilarating time for your company. Revenue is increasing, profits are high, and you’re making a name for yourself among your competitors. However, properly managing business growth and realizing the full benefits in a growth environment are not simple tasks.
We give you five ways to grow your company:
Part of any growth strategy is to understand your market. Do your research and get a picture of how your customers behave and what they want. Remember, business conditions change constantly so do this on an ongoing basis. It is useful to do a SWOT analysis, where you assess your company’s Strengths and Weaknesses, and then identify Opportunities open to you and any threats you face. This will help you to establish a niche in your market.
The employees you hire are invariably the difference-makers that influence the future success of your business. Regardless of products or service features and benefits, without the right team, your growth will not be maximized. We believe that culture fit is the most important aspect of hiring and retaining great employees, with skillset following closely behind. Your team should reflect the ultimate vision of your company and represent the values, beliefs, behaviors and experiences that make up your business’ work environment.
No matter what stage your startup is currently in, you can never stop listening to your customers. Customers have the most relevant ideas, the most immediate feedback, they are increasingly happy to help (through social media) and they pay the bills. So, put in place a formal approach to listening to customers all the time and acting on their input.
A fast-growing business needs capital behind it and that means keeping tight reins on your cash flow. Good supplier management and stock control are vital, you want to free up money for growth, not have it tied up in outstanding debts or existing stock. Weekly forecasting is also essential, keep a close handle on what is coming in and what is going out of your business. New stakeholders will be much more likely to invest in your company if you have strong cash flow credentials.
Getting on the path to scaling your programs and business model to keep up with your business’s development is critical. What might have been successful when your business was smaller might not be as effective now. For example, you may need to consider segmenting duties among new employees and redefining the organizational and managerial structure of your business. Having processes for every aspect of your business, especially change management, to modify effectiveness is essential. It’s crucial that you are aware of the new set of risks and opportunities presented to your company as well as your incoming and outgoing cash flow.
While you work hard to grow your business, managing that growth in a way that delivers consistent quality and service and consistent cash flow is essential to long-term sustainability. By following these steps, you may be better able to head off growth-related issues before they start. Tell us some more about your business!