There is always interest among owners in taking their business to a higher level. It is more than the tired cliché of “work smarter and harder”. As an owner, your ability to think clearly, analyze, and make good decisions are keys to your profitability. Many factors are involved in attaining growth and here are a few thoughts to consider:
1. The Product Must Satisfy a Need
The first principle to consider in selecting any new product or service is to determine if it fills a genuine, existing need that customers have right now. A new product or service must solve a problem of some kind for the customer or make the life or work of the customer better in a cost-effective way.
2. Boost R&D
Times are not going to remain down indefinitely. When the next “up” wave comes around, you want to be ready with new solutions for the market. This is when weaker companies scale back on R&D and smarter companies invest in their future.
3. Cash Flow Is Essential
Especially with a small business, you must hold onto your cash as a drowning man would hold on to a life preserver. Cash is the lifeblood of the business. Cash flow is a critical measure and determining factor of business success. Successful entrepreneurs install careful financial controls and monitor them daily. The basic rule for entrepreneurial success is this: only spend money to earn money. The basic rule for running your business is "If it is not revenue, it is expense!"
4. Maximize Your Marketing
Perhaps one of the most important principles for business growth is strong momentum in sales. This requires an emphasis on marketing that permeates the entire organization. Everybody must think about selling and satisfying customers all day long.
What's the purpose of a business? Some people say that it's to "make a profit." But this isn't correct. The true purpose of a business is to "create and keep a customer." Profits are the result of creating and keeping a sufficient number of customers in a cost-effective way. All emphasis has to be on creating and keeping those customers.
5. Engage your employees and listen. Your employees can be a goldmine of ideas. They know your customers, your market, and your operations. Actively encourage them to come up with ideas to improve revenue generating operations, product innovation, cost cutting measures, etc., and listen to them. You’d be surprised at the level of ideas you’ll generate simply by asking. This also gives your employees a great sense of inclusion.
Please let me know if these thoughts provide some insight into growth opportunities. What do you think?
gerry@polarisgroupmc.com
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