Strategies for Business Growth

 

Every business looks to sustained and manageable growth. Growth can be generated in a number of ways, but strategies unfortunately do not just fall out of the sky. It all involves hard work, like every aspect of running a small business. It also involves trying to 'step outside' the day to day task of running the business to plan growth and analysing potential pitfalls along the way.

Plan for growth

Take time out from your day to day work to plan for growth. Particularly when you're operating at full steam it is hard to contemplate having any more on your plate than you have already - but that's exactly what you've got to do. Look at ways you can generate growth and how you will need to manage growth - what new resources you may need such as staff, capital, systems, physical space and so on. Look at what this will cost, and place realistic expectations on how long it will to take to generate the revenue required to fund the expansion in the long term.

Prepare for pitfalls

There are examples throughout the history of the corporate world of ambitious growth plans leading to the downfall of successful businesses. Grand plans, or indeed greed will frequently lead a business to fail so all growth must be carefully planned every step of the way. Play devil's advocate with all aspects of growth such as increased supply and order volumes, increased staffing levels, and the ability of your systems to handle growth. Also ask yourself whether you can handle the commitment involved, and most importantly whether the marketplace is ready for your growth ambitions.

Generate ideas from clients

Your clients - whether existing or potential - are the ultimate decision makers  when deciding whether your business will grow. Therefore it is  important to consult with them as you would any business partner. Can they give you further business? Do your growth plans also coincide with their plans for growth? Is there an aspect of their business you can supply that you currently don't address - or indeed is there a competitor that you could replace?

Generate ideas from staff

Consulting with your most important asset is imperative. They are going to be the engine room of your growth and they will be a huge asset in helping you to assess what is required for growth. Allowing them to take ownership of your strategy will pave the way for the changes you need to make to the business.

You should also recognise that you may be a barrier to staff offering ideas and improvements to the business. Many business owners may be unwittingly placing barriers to staff contributions and ideas by the very nature of their position. Staff members can be disinclined to offer ideas because they feel they could be perceived as criticisms of the boss, or having ideals above their station. One way around this is to actively encourage staff to contribute to an anonymous 'suggestion box'. It will only take the implementation of a few of these ideas to remove the need for anonymity - staff will want to take credit and be rewarded for their ideas. Also consider using staff reviews to encourage one on one suggestions for business improvement and development along with staff development.

Manage growth sustainably

Growth has to be carefully controlled and unsustainable growth will seriously harm a business - if not send it to the wall. Ensure you have all the systems and infrastructure in place for growth - no amount of orders will be able to save a business if you can't meet them on time and invoice on time. Carefully consider entering partnerships with others that may be able to work with you to achieve this growth. A word of warning, however, business partnerships can be fraught and analysed in further detail here:

Business growth is often essential to achieving the original objectives of the business, and sustained growth will add greater value to the enterprise that you may have put in a backbreaking effort to establish and build up over many years. It needs to be carefully planned, however, to ensure that your efforts over the years, not to mention your livelihood, aren't squandered. With careful planning and the support of staff and clients, many a positive business can achieve sustained and profitable growth.

Dun and Bradstreet AustraliaTop of page Dun & Bradstreet Australia Pty Ltd 2012 | D&B Small Business    *About Us    *Sitemap    *Advertise    *Terms & Conditions