Working on company growth is an essential task for all entrepreneurs looking to gain more space in the market. You are mistaken if you think that management focused on development is only for large companies.
Small and micro-entrepreneurs must also implement management focused on growth if they want to increase their sales.
But how do we achieve growth in a structured way? In order to answer this question, we made this post. Here, we will discuss some practices to help your company grow in a structured way.
The Importance Of Structured Growth
It is not uncommon to find business people stating that their company is overgrowing and that they are concerned about the sustainability of their activities.
When overgrowing and in a disorderly manner, instead of an increase in profits, the company may only experience an increase in its costs, especially when the company’s variable costs are very high.
But I think that growing and expanding your company is a good thing. Through it, it is possible to reach new markets and add value to your products. However, this growth must be planned appropriately.
To do so, the entrepreneur must consider a variety of factors, such as his financial break-even point, improvements in his financial control and cash flow, evaluate all necessary investments and, of course, the current situation in his field of activity.
By evaluating all this data, the entrepreneur will have enough confidence to assess the viability of the intended growth and establish medium and long-term goals.
Here are some actions that will help your company achieve sustainable growth:
Have A Business Plan
Many entrepreneurs still need to understand the importance and power of a well-structured business plan.
The first thing every entrepreneur should do before opening a company is to draw up a complete business plan that is as detailed as possible. It is through it that you will be able to identify all the variables that involve your business.
With one in hand, you will have an overview of how the market is doing, who your customers, suppliers, and partners are, the values practised in the market and the basket of products or services that your company has.
This plan is not a tool to understand the market and your competitors. It is also an essential part of the company’s self-knowledge.
Know Your Customers’ Profile
Gone are the days when knowing the profile of an audience meant knowing their gender, age and social class. Currently, there are several models for classifying and analyzing an audience profile.
Behavioural and social factors are mandatory information when composing a profile; that is, in addition to knowing who they are, the entrepreneur must understand what their customers think, like, how they buy and what their values are.
For structured growth, you must understand precisely the profile of your audience in order to assess whether they are interested in your product or service and whether they are willing to pay for it.
This understanding will indicate the feasibility, for example, of opening a new branch or creating an e-commerce, for example.
Create A Difference
You’ve done everything right so far. However, your company is just another company offering the same product or service as thousands of other companies. And now?
To ensure sustainable growth for your company, you need to develop a competitive advantage that makes customers choose your company over your competitors.
By defining this differentiator, you will be able to add value to your product or service and retain your customers, which is one of the main factors in ensuring sustainable growth; after all, it generates recurring revenue and allows you to forecast profits with greater security.
When talking about a difference, we must always remember one essential thing: quality service, personalized service, and excellent after-sales work are not differentiators. They are an obligation for all companies looking to grow.
A company’s differentiator must explain its values, market positioning and use of exclusive techniques or technologies in its products or services.
Have Strict Financial Control
Do you know exactly what your company costs every month? This is the first step towards achieving quality financial control.
By knowing what your cost is, you will be able to assess the minimum amount of revenue (sales) that your company needs to have in order to pay its bills on time and generate profits.
In addition to this survey, controlling your company’s cash flow is essential. Record everything that comes in and everything that goes out so you don’t have an unpleasant surprise at the end of the month.
Especially in micro and small business, profits tend to flow through unrecorded expenses, and at the end of the month, the entrepreneur needs to know where they went.
Another critical factor is to completely separate what is the businessman’s money and what is the company’s money.
Many need to separate them and use money from one source to pay another, generating losses on one or both sides and, possibly, even problems with the tax authorities if they assess that tax evasion is taking place.
To avoid complications, the entrepreneur must define a pro-labore and not be tempted to take more than the established amount.
If a significant unforeseen event occurs and you need more money, resort to solutions that do not involve withdrawing more capital from within the company.
Also Read: Which Types Of Software Are Best Suited For Your Company?