If you’ve made it through the 1st year of business, then you’re already outperforming most new ventures. Congratulations on making it! But, where do you go next?
After the 1st year of business
That first year is critical, but success means making the most of it. Thus, business growth should be your next priority. Once you’re up and running and you have a steady stream of revenue, it’s time to start looking once again at your business plan.
Updating it is now crucial if growth is your next goal. No matter what kind of business you run or the areas of growth you want to explore, this quick guide helps make your plans for growth more likely to succeed.
Look at the basics
Your first step should be to run a full and thorough evaluation of your basic business activities. The intention here is to precisely evaluate your primary activities.
As for what’s “primary,” this term includes any products that you make, what you sell, and developing a deeper understanding of why they have been successful. This evaluation can provide you with clues as to where improvements are necessary (and how quickly to implement them).
For retailers, this info-grabbing process can be lengthy, especially if you sell multiple products. For other industries, such as hotels and restaurants, it could be a relatively simple process. Make sure that your costs are a clear area of focus, and your review will be more revealing.
Tip: If you have products or services that are weak sellers or offer little value to customers, then reappraise their inclusion. I know, they’re your babies! But if they’re taking up energy and costs without making a profit then they might slowing you down rather than helping the biz.
A financial review
It’s very likely that you will have to spend money to expand your operations. A lack of financial resources is one of the leading reasons for growth failure, and the repercussions can undo all of the hard work you’ve already put into the business.
Make sure that you have the right level of working capital and a clear cost plan for your growth. If you don’t have the financial security to start growth successfully, then taking out a loan might be a viable option for you.
From hoteliers who need hotel loans to buy new properties, to tech startups that need the latest hardware, ensuring that you have the right monetary resources to support your growth is vital.
The most profitable businesses are those that prioritize efficiency. If your business model is based on reactive work rather than proactive, then your efficiency will not be at optimal levels. Consider your efficiency levels and take the necessary steps to make your processes smoother and more responsive. Consider the following areas:
- Premises: Identify the pros and cons of your current property and evaluate its value when you implement your growth strategy.
- Equipment and Facilities: Do you have all of the equipment you need to manage your growth? If not, you’re going to need to look at ways to fund those necessities.
- Employees: Clarify whether or not you have a team that will make growth easier. If they lack the skills you need to encourage growth, then don’t immediately hire people to fill those gaps. Instead, offer team-building options that will benefit your brand long-term. You might also consider outsourcing jobs rather than hiring in-house to save money and get the expert help you’re looking for right away without training.
Moving forward from the 1st year of business
The more that you assess your current position, the easier it will be to take the next steps to more manageable growth. Take the time now to develop a deeper understanding of your business success Doing so will make successfully implementing a growth strategy far more achievable than it might be otherwise.