Growing any business is a challenge but if you have made it this far as a business owner, you are already in a strong position – you already provide security and a salary for yourself, your workforce and you also have the flexibility and control over your own business growth depending on what your end game is. But have you even given any thought as to your future plans for the business? Do you want to expand, sell or have an MBO? There is no point in meticulous long term planning unless you have an end goal to set your sights on.
Here at CPG Executive, we like to share our expertise around business growth strategies with entrepreneurs and help you to realise your full business potential.
So what are the fundamentals of increasing the value of your business?
You are your business, so it is imperative that you have a business model that works – with and without you being present. You need to be assured that when you are away from the business that it can function at 100% productivity.
Building a strong management infrastructure is key; this is around key, core people, systems and procedures and when all three complement each other, revenue is increased.
Executing a business & sales strategy from a leadership perspective; develop ways in which you can expand through new products, new acquisition and new geographical locations.
Developing a second tier leadership team is critical to growth and success; take a deeper look at how much you invest in training and development, analyse the benefits, and develop yourself too! Look at how you wish to grow; if you are turning over £1m and projecting to turn over £10m in 5 years, then the skill sets you need in order to grow will be very different.
Be a visionary
Do a future visionary exercise – what do you want your business to look like?
For entrepreneurs, leadership and not management is the number one challenge. Develop your second tier core management level and execute your strategy for recruiting talented professionals.
If business is strong; allow yourself to step out of the business and let your infrastructure take over whilst you focus on the expansion options available to you. This is leadership, not management, and this is where radical growth can happen. Avoid being sucked into micromanaging your business.
Work your plan downwards not upwards. This way you have the competitive edge by not being bogged down with the detail and leave room for some visionary thinking and clarity.
Eyeing up the competition
Where do you fit in your industry sector? Who are your direct competitors and what are they doing better (or worse hopefully) than you? Who is growing and who is standing still? Do some website research and competitor analysis to make sure you are as effective as possible in your market. Mystery shopping on your competitors for 360 degree feedback will help with your overall offering and help you create a stand out niche position to gain competitive advantage.
The ever changing world we live in
Some people and business do not embrace change, but there is one factor that will always change and that is the external environment; some changes are so dramatic that they are noticed immediately, others may creep up on an industry over a period of time or be largely ignored.
Changes come in all shapes and sizes from customers’ needs changing, new technologies being established, employee skills needing revising or new legal frameworks being implemented. So where are you in this ever changing world we live in?
Breakdown and analyse your competitors position then breakdown and analyse yours
Look at your business planning and identify what your competition is already doing
Make good use of trade associations and affiliations
Analyse market trends – local, national and international
Identify any change in demographics and respond
Implement effective macro and micro evaluation where needed
Look at how you can enhance shareholder value and influence multiples
Ensure your business is future-proof and your systems and processes can survive due diligence; every investor and stakeholder will need accurate KPI’s and data.
If you would like to discover ways to increase value in your company and perhaps redefine your business journey and end goals, get in touch with me; Helen Roberts at CPG Executive today.