As any small business owner will know, before you can even consider things like growth, you must first weather the storm of your primitive years in business. With this being said, it is always important that you have a loose idea for how you will grow when the time comes. These thoughts of growth should most certainly be on the back burner for a few years, but it is always positive to have them in the first place. When it comes to the growth of a small business, here are the basics which should be in place before you expand.
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Customer Base
There is a school of thought which suggests that growth will attract more customers, in a ‘build it and they will come’ type of approach. This could be a successful strategy but the large majority of businesses who have tried this approach are no longer in business anymore, so best off with something a little more tried and tested. The key to growth is first having the customers that you can depend on, the growth will definitely attract new clients, but you must have a solid foundation on which to build.
Money
When small businesses push for growth too early, they often run the risk of financial ruin, unless they have a big investor behind them. It is precisely for this reason that you must understand how much your growth will cost, and that you have enough to pay for it. This is not to say that you have to have the capital in the business first, growth through the means of loans are not uncommon, but you should always have a safety net for repayments if you don’t have instant success.
Plan
It sounds somewhat simplistic but growth is about more than simply procuring new premises or ramping up production and it should be addressed with a clear and intelligent plan. Those who reach for growth and are successful in their endeavors, are those who have a meticulous plan for how each operation within the business will react to the growth stage, this way it can be executed in a swift and well thought out manner. The reason why you will need a plan for growth from the early stages of the business is because growth doesn’t always happen when you want it to, very often businesses must grow to meet the demands of the customers, having a plan means that you are more or less ready should this take place.
Advice
There are many risks associated with growing your business and it is precisely for this reason that you need to seek as much as advice as possible prior to hitting the switch. You should be speaking to financial experts, business contacts and acquaintances to ensure that you have a robust plan which has been tried and tested. It can be easy to make an emotional decision given that it is your business, but this is something which your head must rule rather than your heart.
Business growth can be very beneficial for your company, as long as it is done well, and that you have the basics in place.
