Is your business ready to grow?
A lot of energy, work and stress usually goes into getting a business off the ground.
Once the business is established, business owners face the choice of running their business to suit their lifestyle, achieving gradual organic growth or ramping their business up for rapid growth.
Fast growth is exciting and challenging but are you ready for it?
Let's take a look at a few considerations if you are considering fast growth.
Are you mentally and physically fit? Do you feel that your body and mind are up for the challenge? Fast growth initially involves long hours and stress on finances so a healthy mind and body is critical before setting out.
The saying is "things always take longer and cost more" so it's smart to have cash reserves or financing in place before starting on fast growth.
Fast growth usually involves increased investment in infrastructure, people and/or stock – you'll typically need funds to grow quickly.
A Clear Focus
How do you plan to grow?
For instance can you expand your product line and/or service offering?,can you broaden your geographical market?,can you leverage your business model with distributors, licensees or joint venture partners?
The clearer your focus, the greater strength of your offering vis a vis the new competitors, the greater the ease of implementation and "buy in" from all staff members and associates equals: the greater the chance of success.
Are you in Control of your Business Today?
It's smart to be in control of your existing business before ramping it up for growth.
That is, if your business is slipping away from you at this moment, how will you cope when it grows?
Positive signs that you are in-control are that you are paying your bills "on time", have money in the bank, feel positive about coming into work, pick up the phone with enthusiasm, are up to date with government obligations such as BAS and PAYG, you have regular holidays and get more things right than you get wrong.
Do you have the infrastructure in place, or can you increase your resources, to cope with the growth?
Does your current premises provide you with the physical capacity to grow? What additional staff are required? How will you involve current staff? Do you need to modify your I.T. systems to cope with additional staff, customers and transactions?
How will you keep existing customers while winning new customers?
The temptation of new business is always sexy yet there is volumes of research – and successful business people – that know new business acquisition is a lot more expensive than keeping existing clients happy.
So before embarking on a search for business growth have a clear plan on how you are going to keep existing clients. Make a staff member or team "retention champions" and ensure they have the support to deliver for existing clients. Existing clients can always be a great source of growth if you are expanding your service or product line.
Where will the new clients come from? How will they be secured/won over? Be prepared to test and measure various marketing channels - often potential new clients won't respond how you think so have a plan A, B and C. Think about a "new business" champion or team so that their focus is clear and that they are driven to MAKE it work.
At SMART Business Insurance we love it when our small clients become BIG clients. So are you ready for fast growth?
Do you have any tips or suggestions for growth for other small business owners wanting to become medium to large business owners!?
1300 542 573
TALK to a SMART Business Insurance adviser
Monday – Friday 8.45 am - 6.00 pm AEST