How To Grow A Business And What To Look Out For

Everybody’s dream is to grow their business enough so that they can be financially independent. However, you need to be aware of a few things while your business is growing.

  1. While your sales are growing, is your bottom line growing as well? Your expenses get higher every year through suppliers putting up their prices as well as landlords. You need to make sure that your profit stays the same. You may need to raise your prices.
  2. Business owners expend by increasing their advertising or leasing a bigger office. However, is their bottom line the same? I have heard many business owners say they made more money when they had 3 staff versus the 10 they have now. If you have 10 staff that are very busy that’s great, your sales will follow. However, when you employ more staff, you need to make sure that you keep them busy. There is no point GROWING and look busy yet at the end of the day you have less to show for it. More workers can mean more headaches so be very careful when employing your staff.
  3. You need to consolidate when your business grows. Stop, check all facets of your business, then expand again. Many businesses have lost everything when they expanded too quickly especially when they open several locations. Each location you open up exposes your risk. All of a sudden you are accountable to different landlords. If one location goes bad, it will spoil all the good work you have done with the other locations. Getting bigger does not always mean more profit.
  4. You need to reinvest in the business. I am a firm believer in putting back in the business to help you grow. It is great to take away all the profits but you also need to put money aside. Cash is king for any small business. There will come a time that you want to spend allot of money on renovating, advertising, developing new products. The extra funds you have can be used to pay for this and expand your business allot faster.
  5. Your competitors will try and copy everything you do. I have been through this many times. They will copy your website, your guarantee and your pricing. You have to stay ahead. You must always be building your database and have your marketing running like a well oiled machine. People can copy you but they are not you. The way you answer the phone, the way you sell, the quality of your products, the joint ventures that you have, your experience are all things that will differentiate you from your competitors. You must always be at the top of your game. Everybody wants to be number 1 in their industry. Once you get there you must make sure you stay there no matter what.