How to Grow your Business
- You’re making consistent profits
If your profits have levelled out, and you’re consistently making the same amount, your business might be ready for growth. Make sure that your cash flow and capital have increased to the point where you won’t have to look for loans to expand in order to fund your growth from a solid footing. However check with your accountant to see if borrowing might also be a valid strategy to fund your growth.
- You’ve built a solid customer base
Your customers are one of your most important assets. If you’ve built up great relationships with them, are servicing their needs properly and have plenty of repeat business, it’s time to start targeting new customers. For example reaching into a different market, or adjusting your marketing plan to reach a new sector of potential customers.
- Demand is exceeding supply
If you’re missing deadlines because you have too many orders, or your business is too small to keep up with a developing customer base, your customers are going to look elsewhere for someone who can meet their needs. Growing your business to meet demand is an effective strategy but should be approached with caution: as long as your operational review does not flag any production or customer service inefficiencies or shortfalls, you could consider expanding to a new location, or adding more workers to your current production line. Make sure you work with your advisors to conduct a full operational review to confirm if this is a correct strategy for your business.
- You need to add products or outlets to keep customers
If your customers indicate that they want new products or more suitable locations from you, it may be time to consider growth. Adding a location may cut down on travel time for customers, encouraging them to stay with you and, even better, may attract new customers in the second area so
make sure you do you research in advance and also have your advisors do some scenario planning on paper first before you make any physical move.
You could also consider expanding your product line to meet the needs of your client base, whether that be from a physical, bricks and mortar premises or from an online store.
- You want to take your business in a new direction whilst maintaining current operations
If you’re ready to head in a different business direction, but don’t want to stop what you’re currently doing, it’s time to explore your expansion options. For example, you could offer your current business as a franchise, or hire a reliable manager to take over operations while you build up the new business.
Expanding your business is a major step, and can be a source of anxiety for many small business owners. You’ll have to think about how you’ll manage additional premises, hire new team members, or develop a compelling, profitable new product or service line.
If you are ready to grow why not contact one of our advisors who can help you create a suitable strategy or point you in the right direction of finance that can help you.