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GROWTH STRATEGIES

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From tiny acorns…

We have spoken recently about growing your business internationally and the options which are currently available to assist with this process. Something which we didn’t focus on was general growth and the strategies that must be in place in order to achieve the growth you desire for your business and which it deserves. Business is something which is always in flux, always changing and always on the movie so it is vital to ensure that your business is consistently moving with the times and growing as much as possible along the way. The most fool proof way to ensure that your business grows and progresses it to plan ahead and to have a growth strategy in place.

A growth strategy is essential and will inform all areas of your business from acting as the cornerstone of your marketing plan to your day to day business activities your growth strategy will be a guiding roadmap that will inform all aspects of your business. Your growth strategy should include information about the current market, your current and prospective customers, the products or services you offer and your overall goals for where you would like to see the business grow to. The growth strategy is an essential business tool as it ensures that things are not left solely to chance, which is a dangerous status to be in in business. If you are not sure where to start with a growth strategy here are some handy starting points.

The first thing to consider when contemplating a growth strategy for your business is market research. It is essential to know your product and service and know the market you currently serve. The next step for many is often referred to as cross-selling, and involves either selling more of your existing products to existing customers, or selling what can be referred to as ‘add-ons’ to your current products or services. This is one of the easiest and most popular strategies to put in place as it does not involve developing something new. Rather, this strategy involves building upon what is already in place. The difficulty with this strategy lies in informing all existing customers that you offer these additional products or services and generating interest in this way.

The alternative to this strategy involves essentially pigeon-holing yourself and your customers, which might seem counterproductive but has seen benefits in the past. Studies show that customers tend to stick with suppliers they understand and trust for each individual product or service and are more likely to continue on with suppliers who give a specific service. The other side of this involves choosing a specific section of the market to focus on, which whilst restrictive can pay off when done well.

The final method to consider for your growth strategy will be to ascertain what new markets you would like to enter. Occasionally, opportunities may arise for you to sell your existing products to a new market and this should be considered within a growth strategy if viable for your business.

In this modern age there are many means of distribution of products and ideas so it is essential to factor distribution and marketing into your growth plan. With this ideas as your starting point, you should hopefully be well on your way to growing your business.

Should you require any further assistance or business advice please don’t hesitate to contact us here at DCA Accountants.

 

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY

IS GREED GOOD? EXPANDING YOUR BUSINESS

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If you’re running a successful business, you may well want to expand. But is it always a sensible decision?

 

Is It What You Want?

Starting a business is a risky proposition, and the statistics on how many start-ups ever make a profit make eye-watering reading. But when you were navigating the doom, gloom and paperwork to get your business venture off the ground, how did you envision it in your mind’s eye? You may have seen yourself presiding over a large company, in which case expansion makes complete sense for you.

But you may have set up your business with the sole aim of providing yourself with a wage, the freedom of being your own boss, or exploiting a gap in the market to do something that you really love as your profession. If you are happy with the status quo, or the idea of taking on more responsibility and potential debt makes you feel sick to your stomach, then perhaps this is not a good course of action for you.

 

Will it Damage Your Brand?

For some reason, it is assumed that if you have a successful business then the only prudent thing to do is expand. But just because other people think it’s a sensible thing to do, doesn’t mean that it actually is.

Sure, there are a lot of pluses to expanding your business. But there are an awful lot of potential risks to take into consideration. Will your unique selling point, the aspect that has made your business this successful, translate to a bigger market? If, for example, your disarming personality puts clients at their ease, an expansion could mean that you can’t be physically present for every job. While clever recruiting could go some way to ameliorating this, it may mean that your USP vanishes, and with it repeat business as your customer begins to see you as interchangeable with other companies.

 

Will Expansion Spread You Too Thin?

Expansion inevitably involves taking on more staff, but you may need to take on extra work yourself while you wait for the cash to do so, or during the transition phase. As people who run their own business tend to work longer hours on average than salaried employees, this may further eat into your free time.

Also, spreading yourself and your staff too thin may lead to mistakes which could damage your core business.

 

Do you have the skillset?

If you’re considering expansion then you’re obviously good at what you do. But managing a larger business requires specific skills. Managing a team from a distance or through middle management can be harder, and calls for a lot of extra documentation and company policies. This may be right up your alley, but it isn’t everyone’s strength and merits consideration.

 

In Summary

Expanding your business has the potential to deliver big rewards, but also involves risk. Not just to the loans needed for expansion, but to your core business. Think hard about the risks involved. If it doesn’t make sound business sense on paper, and the idea of it doesn’t excite you, then stay as you are. And always make sure that you’re bolstered by solid advice at every stage of the process.

 

Eamonn Garvey

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