Tips For Business Growth
What does it mean to “grow your business”?
Is it the same thing as increasing profits, the bottom line? Or does it mean increasing sales, the top line?
It’s important to understand the relationship between these two approaches to business “growth” and how they fit into the evolution of your business.
For example, if you’re approaching the day when you want to sell your business, improving your bottom line via efficiencies and other strategies may be the most ideal way of “growing” your business.
I say this because a coordinated effort to increase overall sales in the short term could make you look less profitable to potential buyers and your selling price would be pushed down.
However, if you’re younger and eager to see your piece of the pie develop substantially, you may be totally comfortable living with a dip in profits while you grow new areas and/or new items. Here are some tips from Prro which will help grow your business.
Near-term small business growth tips:
- Analyse the performance of your sales team. If they aren’t meeting your expectations, or they are showing indications of ambivalence, shake things up. Bring in new blood working on commission as it were.
- Write down everything you do and categorize these tasks. Find tasks that you can delegate to others or outsource.
- Reconsider purchasing and check whether you can enhance the deals you are getting from your vendors.
- Enhance your accounts receivable ratio.
- Look at repetitive tasks you and your team perform. Do they all have procedures written for them? Perceive how they can be accomplished more rapidly and make certain you have procedures that capture the most productive ways of accomplishing repetitive tasks. Make certain that you allow these procedures to be enhanced after some time; don’t fall victim to the “We’ve never done it like that here” mentality.
- Audit your small business listings on the Internet. See if there are any places where you should be listed but aren’t. Make sure listings are accurate. Check your Google surveys. Encourage customers to audit your business on Google.
- Launch a customer referral program. Reward existing customers for bringing you new business.
- Launch a customer loyalty program.
Medium-term small business growth tips:
- Research your local competitors and similar businesses in other areas. Find out if any proprietors may approach retirement age or there are other reasons they should want to sell. Talk to mutual suppliers to see if any may be in financial trouble.
- Survey your customers and find out what other products or services they need.
- See if there are any of your suppliers that might be ripe for a buyout.
Long-term small business growth tips:
- Talk to city and regional planners to discover the areas that are slated for new development. Should you prepare to expand to any of these areas, or perhaps relocate to a bigger facility?
- Talk to real estate professionals to find neighbourhoods in transition. For example, if a low-income area is beginning to be “gentrified,” it frequently means that young families with children will before long turn into the prominent demographic. Also, look at aging neighbourhoods, they can “turn over” to younger, affluent families.
As you can see, some of these points take a lot of research and thought. Be sure you do enough of the items in the “near-term small-business growth” menu to have the time to dedicate to planning for your future.
That’s a task you should never delegate.