You have likely invested a lot of time, energy, and money in your company, and you want to see it thrive. Do you feel like you are doing everything in your power to grow your small business yet just keep coming up short? The answer might be with your mindset.
How to Grow Your Small Business
There may be a few processes to tweak in order to start seeing the results you want. Let’s discuss some concepts for growth…
Rely on Your Team
There is nothing wrong with a business that revolves around the entrepreneur if that is the conscious effort. However if you as the business owner are involved in every detail, you will find it difficult to take a vacation, work reasonable hours, etc. Further, the value of an entrepreneur-centric business will be severely truncated.
On the other hand, if you want to grow and transition your company to a professionally managed business you have to build a team. Delegation and disbursement of the responsibilities will be required in order to keep everything operating smoothly.
Build to Sell
When it comes to business growth, consider a “build to sell” mindset. When a company is built to be sold it not only makes it more attractive to outside investors, it makes it better for its current ownership as well. Building your company with an exit in mind is good business even if you don’t expect to sell it. If your intent is for your business to pass from generation to generation a built to sell model is also valuable.
If your business revenue solely comes from your efforts, tread carefully. Without a consistent and non-owner centric sales system your company’s value and long-term prospects for growth are severely limited. Building a sales team and sales systems engenders value to an organization.
Revamp Your Capital Strategy
Being capital constrained hinders your company’s decisions, and having an insufficient gross margin creates problems for the long term capital for the business. All good things come from profit.
Those profits can fund some critical business aspects, for example:
- Hiring the right people
- Buying the right equipment
- Providing good facilities
- R&D (research & development)
- Taking great care of your customers
This strategy holds true no matter whether your firm is big or small. A well-capitalized company that produces profit is smart business.