I have read a number of articles on how to grow a small business, but I doubt that much of it makes sense to the average business owner.
It all sounds like a lot of ‘sales speak’ as I would call it. I think phrases like Market Penetration, Market Development, Alternative Channels and Market Segmentation mean little or nothing to most small businesses. Like many professional articles they do not speak my language.
You know best
So, let’s take all that nonsense out. The simple fact is you will know, or at the very least sense, when the time is right to grow your business.
You know your business better than anybody else does.
You know your customers and your market.
You know your own strengths and weaknesses.
You will certainly know in which direction you want your business to grow.
In my experience business owners do not need to be told how to grow their business, but they do need help in making sure that business growth works for them. After all what is the point in doubling the size of your business if you do not make any more profit?
Make it work for you
I once had a conversation with a client, after I had completed their year-end accounts. By the way this was in the days when I was an employee, and it was my first dealings with this particular client. The accounts showed around a 70% increase in turnover and the client was delighted to have had such a successful year.
Yes, of course a 70% increase in turnover is a fantastic performance. Their profit, however, remained the same. They hadn’t made any more money. This client was still really pleased. The turnover increase had shown that their business was bigger and more successful. In some respects it had, but ultimately hadn’t they done it all for nothing?
So, I put it another way. Let’s say you are an employee, and your manager tells you the company is doing really well and has a lot more work coming in. As a result, he wants to increase your working hours by 50% but will not increase your pay. What would be your response?
They got it, and we worked together to get their growth working for them. Because there was no doubt that a 70% increase in turnover does represent success, it was just a matter of making sure it was the business owners that got rewarded for it.
The important point here is that the growth must work for you.
Your business will change
As a business grows the financial structure changes. Inevitably costs go up.
You may now need staff, premises, vehicles, additional stock, new equipment and so on.
Understanding how your numbers work will never be more important.
- Have you got the right business structure in place?
- Will the increased sales cover the increased cost?
- How will you finance the growth, and can you afford it?
- Will your pricing structure still work?
- How will you pay your employees?
Taking a business to the next level will mean change, with extra financial and personal responsibility.
So, far from telling you what strategy to use to grow your business, I find it far more beneficial to help you gain the benefit from that growth.
That means talking a language you can understand and providing help and guidance so that you can make the right decisions for your business.
Book a complimentary 30 minute call with me and we can discuss your the opportunities for your business.