Significantly growing a small business can be challenging, particularly given how much you have to work just to experience moderate levels of growth. How do you increase your growth rate to really move your business forward? Here are our tips.
Look After Your Existing Customers
It costs substantially less to look after your existing customer than it does to find new ones. The first thing you should do, therefore, is make sure you deliver the best possible service and highest quality products to your existing customers that you can. You should also consider loyalty schemes for your existing customers as well as looking for cross-selling and upselling opportunities.
By reducing risk in your business, you will have more time to spend doing things that will generate substantial growth. For example, don’t overstock your business or let costs run out of control so you don’t have to spend unnecessary time managing tight cash flow situations. Another example is to consider moving your IT to the cloud to make your business more secure and reduce the time you spend on IT management.
One of the crucial advantages you have over your larger competitors is agility. In other words, you should be able to adapt to market conditions, opportunities, and risks as quickly as possible.
Planning is essential to success in any business. This means you should make sure you set medium and long-term goals and spend time periodically reviewing your progress towards achieving those goals. In addition, ensure you allocate regular time (ideally on a weekly basis) to work on tasks that help you achieve your growth goals rather than spending all your time on day-to-day tasks.
Closely Manage Cash Flow
A properly managed cash flow will give you the space to work on growing your business instead of constantly juggling and moving from one crisis to the next. Even if you have a healthy and profitable business, you will free up resources and save money if you manage cash flow well.
You don’t have to do everything on your own. In fact, setting up strategic partnerships is a great way of expanding the reach of your business in a relationship that is beneficial to both parties. You should, therefore, always be on the lookout for partnership opportunities with companies that complement and add value to your offering.
Keep Costs Under Control
Keeping a tight control on costs is important to successfully grow your business too. So, don’t rent an expensive office or splash out on cars. Those are things that can follow once your business grows sufficiently. In addition, only purchase equipment when you need to and question whether there is a cheaper way for everything you need to buy. For example, do you need to purchase new laptops or will refurbished models be sufficient? Can you lease equipment, or can you do without it completely? Do you need to recruit an employee, or can you work with a contractor or freelancer to keep costs down? All these things will give you more money to spend on growing your business.
For more help and advice with your business, please contact a member of the Gilroy Gannon team today.