How to control your business' growth
Whilst organic growth occurs more gradually and naturally than
buying up other businesses or entering new markets, it still needs
to be controlled. You need to know how it's happening and be
precise about your plans, targets and expectations for growth -
because if it happens too quickly or without structure, it can
seriously damage your business. Problems become amplified with
growth. This guide alerts you to how to avoid them:
- What to consider before you grow
- Be cautious and conservative
- What else to bear in mind
What to consider before you grow
Start by figuring out everything you need that you don't have in
place already to achieve the growth you're aiming for - any extra
staff, stockists, re-negotiation of existing contracts, marketing,
means of distribution, management of new sales channels, storage
space, raw materials, and so on. Talk to suppliers and
manufacturers and discuss prices with them early on. If you intend
to continue with only your existing staff, discuss with them
whether they could handle any additional workload.
- Figure out everything extra you need to achieve growth
- Discuss plans with suppliers, manufacturers, stockists and
staff
Be cautious and conservative
Organic growth doesn't mean spending money as soon as you make
it - you definitely want to avoid that. Make sure you only spend as
you need to - plan at least a year ahead in month-by-month budgets
to control your finances. Avoid taking new staff on unless you
really need to - if current staff are unhappy with extra workload,
it may be cheaper to offer pay-rises than to employ new workers.
Make sure there's a market for new products, services and ranges.
Encourage and incentivise customers to refer friends rather than
splashing out on expensive marketing campaigns to reach new
customers.
- Only spend as you need to - plan finances at least a year
ahead
- Avoid taking on new staff
- Make sure there's a market for new business
- Incentivise referrals rather than splashing out on
marketing
What else to bear in mind
An expanded business usually requires more time. Make sure you
and your team are able to manage it - that you realistically have
the time and resources. Look at delegation of some of your workload
if necessary. Keep in mind that it's much safer to test your
business model thoroughly before expanding. Don't rush growth. Talk
or survey customers regularly - incentivising feedback - to make
sure that your ideas for growth are really what they want. And make
sure existing customers never suffer in terms of customer service
or quality when you're focusing on reaching new ones.
- Make sure you have time and resources, considering delegation
if necessary
- Don't rush - test your model thoroughly before growing
- Make sure customers really want growth and look after existing
customer the same as ever
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