Business growth is the key to success. If you are not growing you are standing still and more than likely being passed by your competition. You should strive for continued growth, even small steps at a time. With over half of the businesses that are started failing before being five years old, it really shows you how difficult it is to survive.
There isn’t really a universal formula that will work to help grow every company, but there are some tips that you can use that can be used to help you. Here are five of those.
- Understand your numbers inside and out.
In order to grow, you need to know all of your numbers. From what products cost to manufacture, or what a service costs to perform, to what your actual profit is after all expenses are paid. If you are guessing or estimating, it can spell disaster for your business.
Also, don’t let your numbers get skewed because of debt or loans. A lot of businesses will ignore this and carry on with careless spending, further putting them in a hole that becomes difficult to climb out of. If you can avoid debt and if you do have a loan, strive to pay it off fast, then you will be in a much better position.
- Attract the top talent for your team.
You will never grow unless you hire the right talent to run the business. You can’t do everything yourself, and the sooner you realize this, the sooner you can find people to fill the important roles. Focus on attracting like-minded team members that have the same vision as you do. If your company culture is healthy it will help you achieve all of your goals.
Often times, company culture will attract the right fit team members more than just a salary will. Look for people that are looking for more than just a paycheck. Never rush the hiring process and wait until you are 100 percent sure someone is a good fit. Bringing in the wrong person can create a toxic environment that can have a negative impact of your company.
- Know who your target customer is and where to find them.
You are never going to be able to grow your business unless you are able to attract more customers. It’s simple logic, yet so many businesses still don’t spend enough time identifying who their target customer is and where they can be found.
With internet marketing being so popular, and so many consumers active online, it makes it a very appealing place to advertise and market. But, it’s so big that a company can easily blow through an entire monthly budget in a day with no results if they are spraying wildly with no targeting specified.
Where can they be found? When can they be found there? What devices are they using? What is their buying cycle? These are all questions you need to know the answers to.
- Identify your KPIs that are responsible for growth.
What are the indicators that signal strong growth in your business? Is it sheer number of customers? Or sales volume?
For example, one company might have data to back up and prove that every customer they attract ends up purchasing an average of 5 times within the next 12 month. That means there are no additional marketing dollars spent to get them to inject revenue 5 more times over a 12 month period.
Then, there might be a company that just generated $1.2 million during holiday promo, but the merchandise was liquidated at cost to clear the warehouse. Numbers alone don’t necessarily signal business growth, so make sure to identify the ones that do.
- Know why you are better than the competition.
What is your USP (unique selling point)? Every business needs to identify theirs, and then leverage it. If you aren’t able to stand out from your competition they will swallow you alive. If you don’t think your competitors are constantly gunning for you, think again.
When you know what your leverage points are, highlight them on your website and throughout your social media content. Don’t be afraid to show potential customers why your brand is the best option.