Growth in a small business is a great sign, but it’s important to know how it changes operations.
It’s an exciting time when your small business begins to grow – from gaining new clients to increasing your range of services, there are a number of areas your company can expand on. Growing your business can be challenging. Learn how to make it a smooth process.
Getting advice from a range of people is a smart way to see how the growth of your small business will affect the way you work and the operation as a whole. Speak with a financial consultant or accountant on cash flow planning, business strategy and staff numbers as your operation grows.
Accountants can also advise on any upcoming government or industry regulations and policies that may affect your business growth trajectory. Also consider getting advice from industry colleagues and entrepreneurs on the structure of your business.
As your small business develops, you might look at merging with another company, investing in assets or finding angel investors to fund new divisions.
Read more about seeking professional advice: 5 Questions to Ask Your Accountant.
Keep Up with KPIs
Key performance indicators (KPIs) will help you see how your business performs in periods of growth. When setting financial metrics, look at areas such as debtor days, average margins, inventory turnover and net profit percentage.
Your KPIs will depend on your industry and business model, so speak with your financial consultant or accountant on the best metrics to suit your operation. Meanwhile, adopting planning and forecasting tools for the business will help you anticipate upcoming peaks and troughs and what costs you will be up for at various points.
Your small business will increasingly rely on the quality of its staff as it grows. As a result, it’s important to ensure employees are up to date with the latest industry training and knowledge.
Think about enrolling your staff in training and skills courses where you may be able to gain financial assistance under certain funds. You are also likely to need diverse skill sets as your business offering changes.
Look at hiring staff who are specialists in the areas you need, such as digital marketing, strategic planning or IT, or consider training up existing staff. Delegating is also important as your small business expands and your own responsibilities shift to a more strategic level.
You can set team expectations by holding weekly meetings with senior employees to discuss future projects and challenges and ensure everyone is on the same page.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.