Growing your business should always be a priority for you. Even if you don’t want to expand into a world encompassing brand, there’s a certain amount of running you have to do simply to stay still in any market. You need to keep adding customers to replace those who drop off, products to replace those that go out of fashion or escalate in price, and make sure your marketing is regularly updated so you’re reaching the right people in the right way.
It’s also important to at least keep an eye on bigger opportunities for growth. If you miss one that would perfectly complement your needs and aims and it’s snapped up by a more attentive, hungrier rival, you’ll suffer for it.
But growth can also be a danger – it needs your money and your time, and diverting either of those from running your existing business can be risky. Today we’re taking a look at how you can grow your business the right way.
Identify What You Want
It’s important for you to know what you want out of running a business. If you want to grow your brand aggressively, then codify that ambition so it can guide your approach to growth. If you’re content to maintain your size and reach, make sure you don’t find yourself tempted into opportunities that don’t support your aims.
Identify What You Are
It’s important to know what your brand is before you begin an expansion campaign – which is another way of asking “what do people think of you?”. You need to know what image you’ve built in the minds of your customers, and how and why it appeals to them. If you don’t have a grip of this then you risk destabilising your successful brand with expansion that doesn’t flatter it – products that don’t make sense alongside the range you already have in place, advertising that doesn’t represent the business customers recognise, new premises in areas where your customers don’t shop.
Identify Your Financial Limits
Finance is one of the biggest risk areas in expansion. A successful growth of your business can pay off in vastly increased revenues, but you have to spend money to make money, and even if you’ve thoroughly researched your new product, premises or advertising, if you run out of money to spend before it starts making money for you, you’re in trouble.
Cost each opportunity thoroughly and ensure you know how you’re going to fund it and have an exit strategy if your plans don’t pan out.
If you want some help preparing as you head into a period of growth, a strategy consultant can be a useful resource.