Why growth is essential for your business

This informal CPD article ‘Why growth is essential for your business’ was provided by Business Doctors, a business training provider that specialises in provision of learning for professional firms.

Many business owners are happy to continue achieving the same results year after year, but for the long-term health and survival of a business, growth is essential. Without it, your operations could become stagnant, standards lowered, and it could have a detrimental effect on your staff morale. A healthy business that can demonstrate continuous growth will be in a better position to acquire assets, attract the best talent and secure investment funding. In general, grow your business, and more opportunities will follow.

Ready to grow?

Owning and running a business takes its toll emotionally. Is your passion there for all to see, even after years of a 60-hour working week? If you answer yes, you are ready for growth. 60-hour working weeks! Yes, it may sound bad, but in many cases, accurate. From our experience, business owners often want to rein in the time spent on their business, a good sign because they recognise a need to work more efficiently.

Chasing big money contracts that involve non-core work can be distracting. Know where to focus your efforts and which new contract to take on. Accept that you can’t do everything yourself, so invest in new staff to help your business progress. A business owner’s vision of the future is a great starting point to work from when developing a strategy and plan. Sadly, a lot of the time, the vision stays in the owner’s head. The ability to turn your vision into an achievable goal will give you a better chance of success.

The road to sustained success is often long and winding. Committing yourself, your family and your finances to this journey can be the most challenging element of business growth.

Planning for growth

You could consider several growth strategies:

• Explore new avenues.
• Expand your products or services.
• Turn your services into products or move into different markets. 

The best place to start is to hold a Strategy Day with key individuals where you can get back to basics and think about your purpose, why you are in business, what products or services you provide, and what problems you are solving for your customers. Strategy Days often reveal surprises along the way, and when completed, you will have a clear idea of your why and a clear plan of action. You will be able to go to market with firm foundations, so you’re less likely to stall in your tracks or set yourself up for failure.

Next, you should establish real sales targets, share them with your team, and give them ownership and the tools to deliver. Ultimately, it’s about them having accountability but ensuring you measure and follow up regularly, praise face-to-face, and manage any poor performance.

Continue to update and involve the whole team. Only by surrounding yourself with the best team possible and ensuring everyone buys into your vision will you create ‘goal congruence’, which will help you realise your personal and business dreams.

Struggling to grow

Can your company run without you?

If you have embarked on a business growth strategy that’s not working, it may be a sign that you are in the owner’s trap. What would it look like if you were to draw a picture that visually represents your role in your business? Are you at the top of a traditional Christmas tree-like organisational chart, or are you stuck in the middle of your business, like a hub in a bicycle wheel? Are you able to leave the company for a month without serious repercussions? Do you need to be consulted whenever decisions are required?

If this sounds familiar, you are not alone. Most business owners and CEOs face this challenge at one time or another in the evolution and growth of their businesses.

Short of cash?

Remember that as your business grows, so do your outgoings! Finding yourself regularly short of cash may be a sign that you are not managing your cash flow effectively. And if you are growing fast, you will likely experience cash flow problems more frequently. Learning how to manage your cash flow effectively will give your business growth strategy the best chance of succeeding.

We hope this article has motivated you to think about some things you need to implement and consider achieving business growth. For more information from Business Doctors, please visit their CPD Member Directory page. Alternatively, you can go to the CPD Industry Hubs for more articles, courses and events relevant to your Continuing Professional Development requirements.