Taking the next step with your business can be just as vital to its success as your first day of operation. As any owner knows, finances are central to commercial viability– but there is much to consider when growing your business. Keep reading for Liu & Associates’ introduction to the complex financial needs of business growth.
#1: Does your business have the appropriate funding?
Unless you have considerable savings or borrowing power, growing your business requires a considerable influx of capital. If you are searching for investors or elsewhere for funds, make sure they honour your values and share the same vision of the future. Once acquired, every dollar should be accounted for and put to work efficiently in the most impactful areas.
#2: What is your business reputation with its clients?
If you are considering growing your business, it is important to have a strong relationship with your customers. Sales, retention, quality assurance– these are just some of the important aspects of customer service that you should prioritize before expansion. Often, good client relationships will naturally help indicate when your business may be ready for growth.
#3: Does your business have a “brand?”
You may have the funds and a solid customer base, but it is extremely difficult to attract new business without recognizable branding, attractive design and a healthy social media presence. While unique products and services are important, clients are human– they are more likely to choose options with clean and clear design. Also, modern customers favour brands with engaging, non-repetitive online content that is updated regularly.
#4: Is your business ready to evolve?
If you want your business to stick to what it does best and keep doing it well, growth may not be the most prudent option. Businesses only thrive when they are equipped for the demands of their industry– refusing to change means you are more likely to be left behind. Remember: you don’t know what you don’t know! Consider speaking with financial professionals, industry consultants and even other business owners.
#5: Do you want your business’s scope to widen, narrow or remain consistent?
Growing your business does not always mean changing what you do, but it usually changes how you do it. If you plan on taking the next step, consider whether you want to increase your business’s market share or diversify its services. Each has advantages and disadvantages, but your success relies on how ready your business is to tackle the new challenges. If you want to maintain the scope of your products or services, you may want to delay plans for expansion.
#6: What is your business’s long-term goal?
Look ahead five or ten years– where do you see your business? Is it neck-and-neck with competitors? Do you hope to acquire other businesses? Would you rather sell it off and move on to your next project? Each answer to these means a different strategy and plan for growth, but all are attainable with a well-organized, detailed business plan.
The considerations above are only a brief summary of the reality of growing your business. Each point introduces a change that comes with growth– for a comprehensive discussion of their financial consequences, contact or visit Liu & Associates today!