Is Fast Business Growth Really For You?

Many business owners I speak to, want rapid growth within their business to make it stronger & more profitable, but with any growth strategy it’s crucial to have a plan.

This business plan doesn’t need to be long & complicated. Your plan could be a one-pager, three to four pages, or a detailed forecast. Without a plan, you will struggle to achieve successful, business growth. A plan allows you to refer back to it regularly, because it’s so easy to get sidetracked putting out fires in the day-to-day operations. On a daily basis, your time, decisions & actions should be bringing you closer to your plan’s objectives.

You Will Need To Invest

Growing a business requires investment, whether through external funding (loans, business angels …) or reinvesting profits. There’s no right or wrong approach, but it needs to align with your plan. Be ready, as the business grows you get paid last, with cash going out for new team members, equipment, products & working capital needs. Having a tight handle on profit & cash flow is crucial, as running out of cash could mean losing suppliers, products, your team, or even the business.

The Benefits Of Business Growth

The advantages of a fast-growing business are enticing. You’ll see increased income, a larger team, & potentially more exciting products or services, there is always enthusiasm & a buzz when things happen. You need to be looking at building sales faster than increasing costs, because that leads to higher profits. Sales growth can be broken down into three key areas: Average transaction value (how much you’re invoicing customers), Frequency (how often customers by from & you invoice them), Retention (keeping your current customers happy & making sure your product range stays relevant).

While income drivers may vary across industries, understanding the key metrics can help you grow your business.

The Cons Of Business Growth

Rapid growth can also be quite stressful. Instead of coasting, working at a comfortable and easy pace, you’ll have a many new challenges on your plate. Recruiting new team members, ensuring they fit your company’s values & meet expectations, is a challenging & risky business. With building new processes & systems, there are always fires to put out, things that need tweaking, plus maintenance & enhancements.

Planning And Reviewing Is Crucial

Having a plan important & crucial to success. While no plan survives battle, forecasts become outdated quickly, having something to aim for keeps you focused on the target destination. Regularly compare your actual performance against your plan – check if you are on budget, on time, & meeting customer expectations? Tracking non-financial metrics like customer feedback, often drive a business’s success more than financials.

Is Fast Business Growth Really For You?