During the early days of running a business, you will generally focus on making sales and a profit. Once you have established this and you are generating a reasonable profit, you may want to consider growth of your company. There are a variety of ways you can do this, although growth isn’t just about generating new sales.
Creating a plan
Take some time to produce a business plan that outlines how you will achieve growth. You may also want to factor in some changes you may need to make as the company expands. Keep a close eye on turnover, as once you reach a specific level you will have to register for VAT. There are some benefits to registering for VAT prior to reaching the threshold, but if you expect to reach that amount, you should register immediately to avoid a penalty being charged.
You may also want to consider a different business structure once you expand your empire. If you started as a sole trader, you may discover that there are more benefits to becoming a limited company. If you are unsure, discuss with your management accountants. Other items to include in the plan are sourcing finance, taking on more employees and your sales.
Services and products
One of the main areas where you can increase growth of the company is to improve or develop your products and services. Customers are always looking for new products, so expansion in this area can be lucrative. Carry out some market research to find out exactly what your customers are looking for. Ask them what they like about current products and what they would like to see change. You may find that you attract new customers and may be able to increase your prices slightly. If you make improvements or develop new products, take care to ensure you are keeping production and material costs low so profit is maximised.
Review sales and prices
Increasing sales levels is the most obvious method used to generate business growth. You could try to increase sales to current clients, or you could find new customers. Repeat sales are effective, along with reaching out to previous customers and trying to win them back.
Review prices so that you are still competitive. By becoming the most competitive company in your sector, you will increase sales levels. Benchmarking is one of the most effective tools for a company wishing to grow.
If you would like to discuss any aspect of business growth, give us a call to arrange an informal meeting.