Growth in a business is essential. How much growth, depends on your vision for your business….
Many business owners often confuse growth with expansion. Expansion is moving into new product lines, new services and new areas. Growth is increasing your capacity to continue with the products and services you have. Growth may require expansion, but expansion is not necessarily needed for growth.
Growth is necessary, at the very least, to ensure that your business maintains a healthy profit margin. Expenses typically rise each year and, as such, your business needs to grow, otherwise it will ‘fade’ away.
This is why having a business plan and regularly reviewing your businesses performance is so important! Understanding the businesses financial bottom line and how the target markets are evolving is paramount to ongoing business success and growth.
Be Honest With Yourself…
Sometimes, the largest obstacle any small business owner can have, is themselves. Far too often, we as business owners fall prey to own success and we ignore the change indicators in our market. A wise business owner will ensure that they can independently evaluate their business – a business mentor is great for this kind of oversight.
Be brutal in your assessment – really extrapolate the possible changes in your market and determine how you can refine your business strategies to capitalize on the changes.
In one of my ‘previous business lives’, I ran a retail franchise store. We were a very niche business and when we first opened the stores, we did really well. However, as the market evolved it became more of a consumer market (not niche) and our Franchise did not change it’s strategies to take this into consideration. That franchise no longer exists – it was placed in receivership.
There are several strategies for growth that may be applied by a business owner.
Sell More Of The Same Thing
This is possibly one of the most popular strategies for business growth – do more of what you’re already doing.
This could be a valid approach, particularly if the business or market is relatively young.