As a business owner there will come a time where you have to think about taking that next step to keep your business growing.
You’re thrilled – business is going great! But you’ve reached capacity in your business and taking on another client will threaten your ability to provide good & consistent results. The dilemma is you do not want to turn the work away, you want your business to grow and have the opportunity to improve profitability. So you’re thinking about employing more staff which may mean a bigger office, increase in employee related costs, additional IT equipment, company vehicles, machinery etc etc – growing the business then starts to seem quite scary and a bit of a burden.
The truth is, it really isn’t! You’ve worked hard to build your business and it’s time to move it to the next level. BUT (!) not before some very careful planning and consideration:
- Understand your business model! – firstly, and most importantly, is the demand enough to invest in growth in the first place? Will investing in your business lead to the increase in income that you’re expecting? Is your business model scaleable? You should complete some business planning to investigate how robust your model is and whether it will produce the same/better results with a bigger overhead. After all, no one grows their business to be less successful!
- Know your finances! – business growth can often mean an increase in cost. Understanding the financial health of your business is vital if you are considering growing and adding to outgoings. We recommend preparing a budget & cash flow forecast to investigate the implications of an increase in cost. If you’re using desktop accounting software – switch to cloud based ‘real-time’ software such as Xero to give you key financial data that is up to date.
- Speak to the experts! – don’t dive into areas of business that you’re not familiar with. Seek out advice from specialists in key areas of business; HR, employee benefits, health & safety, IT, accountants. Building relationships with outsourced experts will take the pressure off and give you the confidence needed to make the big decisions.
- Review your systems! – have you built a solid foundation of systems and processes that will support growth? Are you utilising a CRM system to store, track & organise your contacts? Are admin processes efficient and easily understood? Now is the perfect time to review and get it right. Time is better spent on income generating work so make the administrative side of your business effective and efficient. If you need help in this area, speak to us about an admin audit.
- Be patient & stay focused! – take your time to make the right decisions and do not take your eye off the ball. Making decisions to grow your business can be exciting and it’s easy to find yourself distracted because of it. Keep your client base satisfied with your performance and maintain that as you grow. Your clients are your business and the reason for your growth.
The Business Hut is now in to it’s third year of trading and it’s been a really enjoyable journey so far. Like most business owners in their first year, we learnt a great deal about what our proposition is to our clients and our initial business model has evolved somewhat over time. The challenge we now face, like many other young companies, is taking our business to the next level. We’ve considered and worked through points 1-5 ourselves and have worked hard to build a scaleable business proposition; focusing on cloud technology to enable our business to grow organically and keep our work processes consistent. We’re excited about the future!
Happy growing 🙂
Tags: business, business growth, business plans, cash flow, finance