Business growth, progress, and improvement are vital to the long-term success of every business enterprise. Business growth must be a deliberate choice, fired by passion, planning, and solid effort. Did any successful business owner ever say, “Let’s stagnate to success,” or “Let’s shrink greatness?” No, not ever.
What is Business Growth
Business growth can be noted by several different measures, including increases in sales, profits, number of customers, number of employees, and company value. Not every aspect needs to increase or even increase at the same rate for a company to be successful. And the rate of business growth that is desirable depends on the condition of the company and its life stage.
Why is Business Growth Important?
Business growth is important to achieve increased sales which can lead to increased profits. Increased sales can lead to an increased market share and a greater ability to influence the market and defend against competitors. Growth means that you’ll be able to create more jobs, pay employees more, hire and retain better employees. Growth can propel innovation, enabling your company to provide more and better products and services, and in turn, attract more customers. Growth enables an enterprise to seize new opportunities. Growth adds resilience, enabling a company to withstand market fluctuations, as well as economic and competitive challenges. It also provides some economies of scale, thus lowering costs.
10 Reasons You’re Not Seeing Business Growth
Here are some common reasons for not seeing the business growth that you desire:
- A well-framed goal has not been developed to identify the types of growth that are desired.
- There is an incomplete or poorly developed business plan. It may not be a complete plan that defines how the operating system will achieve growth, including a smartly developed budget and financial components. It may lack a comprehensive marketplace and competitive assessment. It may be missing a well-defined business strategy. It may lack a fully developed marketing plan.
- You may be struggling to grow if you don’t fully understand the dynamics of today’s market, and especially if you fail to differentiate your products and services from your competitors.
- Investing in the future of a business is key to business growth. If adequate funds are not used to purchase additional inventory, buy new equipment, or acquire new technology, growth may be hard to achieve. Be budget wise, but don’t pinch pennies.
- Failing to grow frequently comes when a company relies on the old movie advice: “just build it and they will come.” Rather, growth requires adequate expenditures on marketing and advertising as well as employing the right marketing and advertising strategies and tactics.
- Consistent business growth requires the right employees, doing the right work. So, growth can be stemmed if the business is not staffed sufficiently, or if poor hiring decisions reduce the quality of your talent pool.
- Don’t fail to know and manage by your numbers.
- Don’t do everything the old way. Automate and systematize business processes.
- Don’t keep doing the same things the same way. Rather, examine processes and improve them.
- Don’t do everything alone and don’t ignore advice. Get financial and accounting expertise from a professional CPA.
Get Expert Accounting and Financial Assistance
Contact Doerhoff & Associates, CPA, based in Jefferson City, MO for professional accounting and financial assistance that you can count on. Doerhoff & Associates has one goal in mind, to provide comprehensive business accounting services designed specifically for your success.
