Business growth is a key objective for many businesses. However, before you focus all your energy on growing your business, make sure you have planned how you will manage this growth to ensure that it does not adversely affect your business and its reputation. Below we have highlighted some key aspects you need to consider.
1. Capacity and Resources
Does your business have the required resources and capacity to be able to handle additional work, whilst maintaining quality and customer service? This needs to be a key consideration as generating too much business will impact upon your delivery times, quality of your product or service and ultimately damage your reputation. You may need to consider increasing your capacity now, hire more staff etc so you can train them and are ready to manage the additional work when it comes.
2. Financial Constraints
You need to consider your financial situation very carefully, as poor cash flow is the reason over 90% of businesses fail. Are your growth plans going to require you to hold more stock, therefore tying up valuable capital.
Will your growth plans require you to see additional finances in the form of a loan or overdraft? If it does, can your business cover the repayments, plus everyday business expenses and still make a profit?
A detailed cash flow forecast detailing sales, working capital and funding can help ensure you have enough money to finance your growth plans.
3. Marketing and Sales
Do you have the skills and ability to undertake ongoing consistent marketing to keep the work rolling in even when you are busy?
Who will handle all of the new leads and enquiries? If it’s only you, how can you do this whilst undertaking all of the additional work you are generating?
It may be worth considering a sales and marketing person to ensure that this all happens when you are busy.
4. Systems and Procedures
Do you have the systems in place to assist you manage your business and cope with additional workloads? Are there systems available that will make you more efficient and free up some of your valuable time or that of existing staff?
Do you have robust written procedures so any new people know exactly what they need to do and when—minimising time wastage and mistakes?
If new initiatives are likely to disrupt your business’s current performance, how will you keep your customers satisfied?
Are you fully utilising modern technology to automate some of your tasks?
Ensuring the technology is fully utilised provides you with a more efficient and profitable business. You are also rewarded with more time to focus on business growth.
Nowadays, there are systems you can implement to automate your existing customer nurturing, leads generation and follow up process.
Before you grow your business, make sure you are as efficient as you can be. This will maximise your chances of success.