Why is Growth Important for Businesses?
Growth is an important part of any business lifecycle and has many benefits. It’s a sign that your business has been established and has safely come through the start-up phase. Pursuing growth will increase your influence in the market, reduce risks, and provide security in the event of economic downturns or market changes. Plus, you will be more likely to attract new team members who share your values and want to work with you to continue growing.
Strategic growth that is targeted to the unique needs of your business can boost your reputation in the industry, and among your stakeholders, attract more customers, and generate the resources you need to diversify products and services.
In this post, we will explore some ways you can pursue sustainable growth, with a focus on how to develop a clear strategy, and generate financial capital.
Developing a Business Growth Strategy
No two growth strategies are the same. Each business will have different priorities, challenges, strengths, and considerations which will need to be taken into account when you create your plan of action.
There are a few steps you can take to get your growth strategy off to a good start:
By adding to the products and services you currently offer, you can enter new markets and attract new customer bases, as well as generating more sales from existing customers. This can increase your financial security by creating new income streams. However, because diversification requires market research, product development, new staff, and other resources, you will need to consider carefully the most suitable and sustainable ways for your business to expand its services.
Clear goal setting
Before moving forward with plans for development, you and your team must be clear on the objectives the business is moving towards, and the steps to be taken. Whether you’re planning to add new locations, launch new products, or generate another income stream, actionable goals with timescales and concrete action steps will keep your entire team on board, ensuring that plans are carried out smoothly.
This is an alternative to diversification that involves marketing your current services to a new demographic or customer base. This is likely to involve adjustments to your current marketing strategy, as well as extensive market research. If your service or product is versatile, consider ways you can promote new uses to people who could benefit most from them.
Funding business growth
Growing your business will require extra cashflow. There are a range of ways to generate more capital for business growth, whether you choose repayable loans, grants, or seek investment. The most suitable options for your business will depend on your unique circumstances and needs at the time.
Here are a few potential sources of business growth funding you may wish to explore:
There are many sources of investment available for businesses, from high networth individuals, to banks, government schemes and venture capital firms. Many investors will require a share of the business in return for the investment but can be a great source of advice and guidance, as well as finances.
Businesses that are growing can apply for loans from banks and other organisations providing help to businesses. While securing one can be challenging due to application processes, if you have a clear growth strategy and plan of action, you may be more likely to receive the funding you seek.
If you have a customer facing business with a product or service that can benefit a local community or make a difference to the lives everyday people, crowd funding can be a great way to generate funds through public donations. It works by selling small shares of the company to a larger number of people. If people are invested in your business, they are likely to become loyal customers, and bring more business through you via word of mouth.
Here at Forward Thinking, we are committed to helping small and medium businesses across the UK to boost their growth, profits and sales.
To find out more about how our dynamic coaching programs could help clarify your strategy and provide expert guidance, click here.