Growth is something every CEO and business leader aspires to deliver, but for many, it can be as stressful as it is exhilarating. It may sound like a paradox, but companies can be crushed by their own business growth. A boom can bring about many changes —you might be taking on numerous commitments at once, signing lucrative contracts in record time, and watching orders soar. But all of this requires greater cash flow, growth planning, and the right financing. If your company is growing too fast, you might not have enough cash to deal with your day-to-day financial obligations, including bills, payroll, and supplies.
As a business leader, it is important to understand why revenue growth is important there can be risks that need to be accounted for. These risks are usually around cash flow and funding needs to be carefully managed to support this. As new contracts are signed, more volume is required, and staff expansion continues this can put a strain on your cash flow.
As a leader, you need to keep laser-focused on where you want your business to go and what you want to focus your time and resources on. Prioritise opportunities that will drive value and profit for your business with strong customer demand for them.
Externally, there are 3 key areas that help drive growth, acquisition, retention and organic growth. Map out where your business is now and where you want it to be and this will help you understand which of these growth strategies are important for your company.
As your business grows you need a plan in place to have the right staff to cater to this growth. Carefully think about what your staffing requirements are, do you need a focus on sales? Or SEO marketing? Also, consider geographic locations. With any staff hires you want to make sure the culture that you are building is top of mind too.
Marketing is essential to position your business and brand with your target customers and differentiate it from competitors. Think about what type of marketing requirements you need whether it be branding or digital and think about whether this could be better outsourced to an agency.
Sales are a crucial part of business growth and teams should always be looking at ways to maximise revenue, sell more, and reduce churn. Leaders need to make sure sales team targets are set in line with growth aspirations.
As your business grows, operations can become more complicated as stock demands increase and you may start selling products overseas. Operations need to be seamlessly integrated into the whole business and scale as the business grows to stop costs spiraling especially when international shipping charges and the cost of holding large amounts of stock are in the mix.
It is important to map out your business growth aspirations and have a plan in place to ensure your business is ready. Lock Finance is here to make sure you are ready to maximse your business growth potential.