For many business owners business growth is an enigma. Some do not make business growth a high enough priority while for others it is a trap that could end their business.
Business growth should be approached in a systematic way. We’ll go through five myths around business growth that you should be aware of and not let get in the way of your path to success.
Myth #1: Just Making More Sales Will Solve All Issues
Businesses in higher sales or revenue brackets aren’t always the best. Chasing profit through more sales can just see overheads getting out of hand.
Focus must be on your business model and the costs of carrying out that business. Keeping accurate weekly, monthly and annual data on profit and loss with a comparison to budget can be an objective way to make sure you are keeping on track.
Myth #2: Cash Flow Problems Will Sort Themselves Out
Founding and growing a business means you will have to deal with cash flow issues. You need to carefully calculate all COGS, fixed costs, take into account delays in customer payments for goods/services rendered, inventory costs and any other factors impacting your ingoings and outgoings.
Cash flow issues need to be tackled head on and worked according to a plan. One of the first pieces of groundwork is to produce some cash flow projections by adding in trend data as well as past business performance into a working cash flow statement.
Myth #3: Too Hard to Get Others Involved
Starting a business requires a different skill set than growing a business. To achieve solid business growth you need to delegate, create systems and bring in management plans.
Business growth planning can be done by any business and is a vital step to building your business. A business founder can feel that they are the only person who can truly understand their company and avoid hiring a consultant. Why waste the time and money?
The reality is that because a business consultant is approaching your business as new, this allows them to zero in on issues that you may have missed or been unable to see fully.
Myth #4: Finding Good Employees is Too Hard to Do
It can be easy to think that you have to do everything as a business owner. Besides, you started the company and got it over that first year hump, why can’t you grow the business yourself just as successfully?
The truth is that you don’t have time for everything, but you always have time for your priorities. Is putting 100% into your business all day every day really feasible? Will it actually lead to business growth or just add more stress and chaos to your life?
If you could only find good employees, perhaps business growth is possible but where to find them? This is equally both a mindset issue and a systems issue. Think about why your dream employee would want to work for your company. Will the right people thrive in the environment you’ve created, and find the challenge they’re looking for? Build a recruitment strategy around this rather than just hoping a great employee will walk through the door.
Myth #5: There’s Not Enough Time or Money and it Can’t be Done
Growth is about pushing you above your current level by removing constraints. If you’re too busy running the day to day of the business, something has to change. Effective delegation and comprehensive planning will tighten up your finances and give you the time to ensure you have the additional income to fuel business growth.
There is often a mentality of ‘build and they will come’, but don’t forget the marketing! Excessive expenditure on new outfitting or buying up of stock is just money outlaid and this does not necessarily mean a return.
Ignore the Myths and Plan for Success
Growing your business is possible but a realistic path to success needs to start with planning and expert advice. Cash flow issues must be focused on and making more sales or chasing revenue is not going to solve them automatically. Expert advice must be sought after through business growth specialists and delegation to competent employees found through a fit for purpose recruiting and retainment strategy.
