Image by mohamed Hassan from Pixabay
By Henry Brown
When you first launch your business, you are likely dreaming of the day that you can say you are experiencing organic growth. Perhaps you will be going from just you running the business to hiring a team. Or maybe even just one extra person.
Either way, it is exhilarating, but success doesn’t just happen. Success in a small business takes hard work, dedication and a lot of learning.
But there are three things that you need to upscale your startup:
Goals
Big businesses have big goals. They are looking to see millions in the profit margin at the end of each quarter; they want to reduce staff turnover and conquer new markets.
But what does that look like for small businesses?
You can’t plan a growth strategy unless you know what the goal is. Planning for more profits is fine; in fact, it is encouraged. But what will you do as a small business owner to get there? That strategic planning sets the small business that stagnates and the small business that flourishes apart. Keep in mind that vague goals aren’t enough. They need to be specific to your business processes and how you want to progress.
Goals should be like turning your basement into an office space like those from Capable Group Inc, giving talks about what you do, collaboration opportunities – getting coverage in the magazine and newspapers and more.
Understand what business growth is
Do you know what business growth looks like or what it is? Perhaps not. Many small businesses make the mistake of accepting a cash injection to drive the growth to happen – because they believe growth is just the profit margin.
While that is fine and can often be beneficial – remember that the initial cash injection will need to be rapid 10-fold. You might also be required to give up the equity in your business, which means a large portion of the control.
You will also be given a list of goals that you need to reach, and these might not meet what you had initially been outlined.
So what can you do to grow without giving up control?
Businesses that are growing quickly will run into several stumbling blocks. They might find they don’t have enough staff to meet the workload or have the stock to meet demand: strategic advisors and those with a long history in small business growth.
Bootstrapping
Don’t discount crown funding or going with an MVP as a means to test a new market. To be able to test something rapidly gives you the information you need about viability.
Growth is returning customers, word-of-mouth working for you, user-generated content appearing, and knowing that you need more hands-on-deck to get the job done.
Cash issues
If you don’t accept the early cash investment, then how can you overcome cash issues? Consider one of the following:
– New revenue options like subscription services, consulting or rejuvenating your most popular product or service.
– Find a collaboration partner who is willing to bring some know-how, cash and give you access to a broader audience.
– Bank loans aren’t always the worst option for small businesses; they can offer a long-term cheaper repayment that allows you to keep control.
To get your small business to grow, you need to watch the goals and adjust your business to meet them. Remember that outside counsel can be invaluable, and finance might not always be the only way to grow.
It’s simple advice that can be applied to any small business.
If you don’t have a business or are considering self-employment, then this is for you: The Self-Employment Survival Guide: Proven Strategies to Succeed as Your Own Boss
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Henry Brown is an online marketing executive. When he isn’t talking shop, he’s roaming the streets of London, uncovering the extra-ordinary in the ordinary.
