Rules for Business Growth

Carry Out a Growth Assessment
One of the first things you will need to do when preparing to grow your business is the carrying out of what is known as a growth audit. A growth audit is basically the process which allows you to assess the strengths and weaknesses in your business before moving into a strategy of growth.

It is essential that you know where you are and where you have come from if you are to determine the right direction for where you were going.

Do not move into a high growth mode until you are clear as to where that business is at, at that present time and also what you want to achieve when you start your expansion.

Growth Questions to Ask
Here are some of the questions that you need to ask yourself regarding various areas of the business before you start your growth push.

  • Are you clear on the goals of your business?
  • Are your managers and other staff also up to date with these goals?
  • Does your accountant or other adviser know what you are planning?
  • Have you developed a business plan which brings into play the whole area of growth, which includes the resources that will be required of it?
  • Have you assessed the performance of your marketing and advertising sections and if so, are these adequate?
  • Have you put in strategies to get repeat sales?
  • Are you clear about your competition and what you need to do to win when you start expanding your operations?
  • Are you confident about your current advertising plan, including whether you have identified your target market and also the methods by which you will reach that market?
  • Have you put in place policies for your employees?
  • Do you feel you have loyal and productive staff?
  • Have you put in place strategies for motivating your employees? This could include a system of extra remuneration or some other way of acknowledging their efforts.
  • Are you familiar with the changes brought about by the latest technology?
  • Have you put in place the necessary procedure for monitoring and control of the inventory?
  • Have you put systems in place for all other areas of your business, including administration and finance?
  • Are you cultivating relationships with your suppliers in order to get feedback on your prices as well as your service?
  • Do you have current financial statements giving you a fair diagnosis of how your business is doing, also giving the current situation of your profit, as well as assets and liabilities?
  • Are your tax records in compliance with the Tax Authorities and are they up to date?
  • Do you have an effective credit control in place, as well as collection of monies owing.
  • Are you happy with your payment procedures, especially where purchases are involved, with payments made to secure discounts offered.

Consider the 3 Crucial Phases
The 3 crucial phases in any business are:

  1. Where is the Business Now - Find out where you are at this time. Review the business performance as compared to its projections and undertaking a full analysis of every area.

  2. What are the plans for the future - Put in plans for the future. Here a business plan is designed and drafted, incorporating all that the business wants to achieve for the future.

  3. Action - Put your plans to work. Your plans are ready, all resources are in place and it is now required that the business commence operations. The owners then have to ensure that the business keeps going well and keeps monitoring the situation to ensure the path it follows is close to that set out right at the beginning.