Growth is a good thing. When your small business experiences a period of rapid growth, it can make you feel unstoppable. Boosted revenue, healthy profits, and more name recognition? Yes, please!
But in order for growth to work to your long-term benefit, it’s essential to have strategies in place that allow you to manage that growth effectively. If you can’t keep up with your company’s progress, then it can eventually prove detrimental to your success down the road.
The key is to stay on top of administrative tasks, maintain a healthy team, evolve your marketing strategy, and keep your customers happy as your company moves up in the world. And those are not easy things to do!
Fear not. As long as you are aware of the areas that need improvements and remain diligent to manage your company’s growth, you can set the stage for long-term success. And these tips from Loren’s World will help you do it:
1. Stay Legal
If you don’t ensure that your company stays legally compliant, business growth is not going to do you much good. Neglecting or procrastinating on legal responsibilities can set your company back and minimize any growth you’ve experienced. In some cases, you can get into so much trouble that your business ends up having to shut down. Don’t let that happen!
For example, make sure the business structure you have in place is working in your favor. If you are not operating as an LLC or a corporation, for instance, you might want to make the switch so that you can receive liability protection and tax benefits. Another thing to consider is that you want your entity to be in good standing. This means that you must file your taxes and annual reports consistently.
Any essential changes to your company should be reported on your annual report. This includes changes in your address or company name. If you neglect to file an annual report, you could face significant penalties or fees at the very least. Depending on the state you operate in, you even have your company’s right to conduct business revoked.
2. Keep Your Financials in Order
When profits are rising, you may be tempted to become complacent. But unless you regularly revisit your budget and reallocate funds where necessary, you can easily fall into the trap of mismanaging your company’s finances. And when you are experiencing rapid growth, it becomes critical to have a financial plan in place for the future.
Make sure you know where every dollar is going, and don’t stop looking for costs that you can cut just because you’re seeing more revenue come in. Set goals, and make financial projections. Forecast market conditions so that you can plan accordingly. Above all, manage your cash flow so that you can always have money on hand to maximize opportunities.
If necessary, hire an accountant or bookkeeper who can keep your company’s finances in order. Another option is to invest in accounting software that allows you to perform various bookkeeping, payroll, and other financial tasks organized. Do whatever it takes to maintain healthy financial management, or your business growth will not last for long.
3. Identify Your Strengths
Every business has strengths and weaknesses. While it’s important to identify areas where you can grow, you don’t want to remain inactive in your strengths. Too many businesses focus on their weaknesses instead of their strengths.
Take time to distinguish what factors set you apart from the competition, and base your strategies around those strengths. Make a list of how your company can solve problems and provide benefits for your target audience, and center your offerings and marketing strategies around them. The key is to highlight the best aspects of your company. In other words, show your customers (and potential customers) what you can do for them.
4. Be Uber-Selective When Hiring
One of the most natural outcomes of business growth is to expand your team. It’s important to have enough team members to keep your business operating and scaling at a healthy rate. But simply adding more cogs to the machine is not enough. You have to make sure that any candidates you consider not only are qualified for the position in question but also believe in your company’s mission and values.
Create a strenuous interview process for anyone interested in working for your business. And consider hiring freelancers where possible. There are benefits to having full-time employees on staff, but working with freelancers can save you money because you can hire them on an hourly basis or for each project. This ensures that you will get expertise where you need it without having to dish out benefits and handle other obligations that come with employees.
5. Rework Your Marketing Strategy
Your marketing strategy is something that you will need to modify frequently. This is especially the case if your business is growing. You have to consider how you can increase your market share or promote new products. You have to revisit your market development strategy, which refers to how you’re advertising your existing products and services to new customers. And you must constantly consider alternative channels that you can use to promote your brand.
For example, email marketing, social media, and your business website are the most critical channels for marketing. If you’re not putting enough time, energy, and money into those platforms, now is the time to do it.
Moreover, consider your target audience. Should you expand your target market or embrace market segmentation? And should you start partnering with other businesses? These are just some questions to ask yourself as you work to establish a firm marketing strategy moving forward.
6. Use the Right Tools
We mentioned how accounting software can benefit small businesses, but there are many other types of tools on the market that can help your company operate more efficiently and manage growth more effectively. For example, customer relationship management (CRM) software like Salesforce can help you better connect and communicate with your customers; and we all know that customers are the lifeblood of any business.
It’s also with looking into marketing tools. Mailchimp and Sendinblue are excellent email marketing products that allow you to easily create effective marketing campaigns. Social media tools like Buffer make it easy to manage your social media posts. And if you need to upgrade your website, there are a plethora of platforms that will allow you to create an attractive, user-friendly site with minimal experience.
Business growth is something to be celebrated, but it’s also something to be managed. Consider the tips above so that you can position your company to make the most of the growth you’re experiencing. Remember that long-term success is the key. But don’t stop here—constantly look for other strategies you can implement to spur healthy growth for years to come.
If you found this article helpful, you can read much more content on LorensWorld.com!