Assess your options for business growth
Top tips to prepare your business for growth
Planning your business growth strategy carefully brings many benefits and financial awards. Follow our top tips to help prepare your business for growth.
1. Establish your business' current performance
It is important to look at your current business performance to see if your business has a healthy foundation to launch a growth strategy. You can use KPIs to assess business performance, and consider key areas in your business including financial performance, profitability, facilities and people and skills.
2. Assess your options for growth
There are many ways in which to grow a business. Depending on your circumstances, you may consider:
- Market penetration - look at pursuing more sales through existing and potential customers or consider selling into new markets through exporting.
- Growth through diversification - eg creating new products or services outside of your core offering.
- Growth through strategic partnering - such as joint ventures, mergers and acquisitions.
- Strategic sourcing - ensure you are getting the best deal and make the most of your supplier relationship.
- Technology - invest in technology such as customer relationship management systems and consider techniques such as search engine optimisation. These technologies and methods can help you to sell more to new and existing customers.
3. Prepare a business plan for growth
Outline how you plan to grow your business and how your growth strategy will successfully deliver this. Your business growth plan should include:
- marketing aims and objectives
- operational information
- financial information - see financing for business growth
- business targets and completion dates
4. Use targets to implement your business growth plan
SMART objectives - specific, measurable, achievable, realistic, timely - can help you achieve the goals of your growth plan. See how to set business performance targets.
5. Measure business growth
You should measure the return on your investment (ROI) in business growth. A popular way of doing this is by using the ROI formula. This will tell you what percentage of return you will get over a specified time. See how to measure your financial performance.