Advivo outlines strategies to encourage growth in your small business.
For many small business owners who may be just keeping their heads above water, maintaining profits and cashflows is simply a major task, let alone finding the time to consider further growth. Often the constraint to making life easier is to grow the business, exponentially. But how can you achieve this when many owners are struggling to find the time and money to run the business as it is? Keep reading for our small business advice on how to effectively encourage growth.
Making the Decision for Business Growth
The first point is to decide whether growth is right for you, and in small to medium-sized businesses, this is often a very personal decision. Do you have the cash flow? What are the implications on staffing? For some, the perception of how hard it will be to grow a business exponentially is enough to deter them. However, the opportunity does exist to explore many options that can be achieved, sometimes without too much pain and often without the necessity of large amounts of cash.
Consider your business and whether any of the following could be possible with the right strategies and support to guide you through…
Acquisition
It’s notable how very few small business owners consider this as a viable option, especially when you consider how effective this strategy can be when it is done intelligently. Consideration can be given to buying a like business in a different location, or an effective buyout of one of your suppliers or distributors (or both), therefore giving you total control of the supply chain. Do not look at a business and think “We can’t afford that” – there are possible ways to purchase businesses without a large amount of cash down.
Distribution Model
Rather than starting from scratch expending start-up costs and requiring further self-management of a new geographic region, building a distribution model allows you to grow your reach with very little investment and/or direct on-the-ground management. The key is to strategically identify the right distributors that will enhance both your brand and revenue. If you need tailored small business advice, please reach out to the expert business advisors at Advivo.
Franchise Model
Have you built a ‘system’? The franchise model is similar to a distribution model, however, it enables you to maintain brand power and control over the franchisees and how they conduct their business. Not for the faint-hearted – as compliance with the Franchise Act becomes a core responsibility of the business, however, we all know that there are literally hundreds of examples of highly successful franchise systems. The key is to understand that your core business function changes from applying your system yourself to supporting others. This requires both a business transformation and a psychological shift in recognising your new core function as a ‘franchisor’.
Licensing IP
The licensing model is best applied where protected Intellectual Property can be duplicated and delivered by others, and can be a good option for those not wishing to become a franchisor. If you have built software, services or methodologies that solve problems and you are not concerned about building a brand, then “white labeling” your IP and licensing to others can be a lucrative option while providing rapid growth opportunities.
New Geographic Location
Depending on what type of business you have, if you have been successful in your current geographical location, then it is possible that you could duplicate this in another location. While there are many issues to consider, in some cases it is not about duplicating ALL business functions; it may be a matter of establishing a low-cost satellite presence that adds revenue with very little associated fixed costs.
Digital Marketing
To encourage growth, it can be advantageous to invest in digital marketing, in order to establish a strong online presence. Employing advertising campaigns, such as Google or social media ads can help you reach a broader audience and drive traffic to your website. Ensuring that your marketing efforts are cost-effective and tailored to the needs of your audience can help lead to business expansion.
The key to taking your business to the next level and developing accelerated growth strategies is first to systematically explore all options and develop a plan to implement and build a sustainable competitive advantage. For more comprehensive small business advice for encouraging growth in your business, please reach out to Advivo’s expert business advisory team.
