Being a business owner is an arduous task. Despite rising inflation, business ownership is on the rise in the UK. According to statistics, 90 businesses were created per hour in 2022.
Most of these businesses are run by new owners who have never been involved in business growth and ownership. Many don’t have the tools or knowledge to manage their business’ success and growth.
Sometimes, businesses succeed simply because they are in the right place at right time. However, those who have experienced the fastest growth are at risk of unsustainable expansion and almost inevitable failure.
Approximately one in seven businesses in the country are at risk of being closed in 2021. This is before the current inflation crisis. It is crucial that you have a strong and sustainable growth strategy to ensure your company’s future. How can you manage your growth?
Set Objectives
Your growth strategy should begin with clear, achievable goals. Many businesses make the error of encouraging growth just for growth’s sake. They fail to set clear targets and milestones for their
growth. This can lead to unfocused growth and excessive expenditure, as well as poor long-term outcomes.
Set some goals for your business. What is success after 12 months? What is success? Is it client growth or a percentage of users who are growing, or expanding into new geographic areas or branches? What does success look like after five years? Not only do they provide direction but also structure.
Budgeting Responsibly
Financial responsibility is an important part of your growth goals. Cashflow management is essential for your business to be able to weather short-term shocks. Without the right economic care, your business runs the risk of falling into insolvency and having to make tough decisions.
If you have enough structure, it is easy to keep a budget. It is important to ensure that funds are ringfenced and that growth goals or projects are funded with strict funding pools.
Mergers, Partnerships, and Acquisition
Finally, many businesses reach a point where their growth stops. Growth-hungry CEOs can find themselves in a no-man’s-land. However, this is often a sign that the business has reached its end.
You might see maximum saturation of your product in your country or region, or you might find that your profits are not sufficient to justify staff expansion.
Partnerships and liaisons with other businesses are key to gaining access to new markets and higher echelons of the business world in times like these.
This partnership is not only a great way to be content with your business, but it also allows you to make an impact on the international stage. You can make sure your brand lasts by merging with or partnering up with another company.
