It is one thing to start running a business and quite another thing sustaining it. The ultimate goal of any entrepreneur is to grow your business to its fullest potential.
According to the OECD Structural and Demographic Business Statistics (SDBS), 20% employment growth is the threshold defined as ‘high growth enterprises in Brazil, Canada, Israel, New Zealand and the United States. For all other countries 10% is the mean.
Business pundits recognise that once a business reaches a ‘high growth’ phase their chances of surviving the first three years dramatically increases.
Lending experts Quickloans.co.nz, state, “one of the most common strategies used by SMEs to expand their business across the globe is to seek intervention from financial institutions. Startups and small businesses make use of small business loans to take their chance at growth expanding into new territories”.
However, as it turns out while taking a loan is a great way of expanding a business, it takes a lot more than just extra cash to safely-scale up your business.
Counting on expert advice
The truth is, no foolproof formula exists that keeps any business safe from stagnation or even regression. However, there are some time-proven ways, businesses can implement to increase their chances of growing bigger and more profitable.
Every business wishes to expand its employee base and increase the turnover. The following steps could be what your business needs to make that giant step into the world of success.
Consider your funding sources
While the world of business has gone through seasons of recess, stagnation and tale-tale signs of improvement. There seems to be a lot of uncertainty in the economic markets in the recent times.
Funding sources could soon diminish, because of the Australian financial royal commission. Financial institutions will impose on harder conditions for securing a loan. It is in these circumstances business owners and board members should considering alternative lines.
Another way a business can raise capital is by selling shares within the business, or merging with another complementary business. You must, firstly, consider whether you are ready to give away shares in your business hence giving up control.
Equity funding is an option on the cards if you are running a high growth business. Make sure that you conduct proper research into several offers that you may get from providers.
Use your past mistakes to avoid future pitfalls
You should remember that mistakes happen across the board. No business, generally, ever makes it to the top without going through a dark valley and making mistakes. The mistakes do not matter as much as how we handle the mistakes. Business owners and entrepreneurs should learn to look beyond their mistakes.
The approach you adopt when in crisis is what determines whether your business will succeed. It is important to learn to acknowledge where you went wrong.
Disclose the errors when discussing options with potential investors. Outline how and what you have learned from the mistakes. Acknowledging where you went wrong is a sign of maturity. It is possible to turn the problems you have experienced, into assets, by charting the way out of the quagmire.
Business plan
An effective business plan incorporates factors of the wider economy. Such a plan must be cognisant of market dynamics. The advantage of considering the external factors is that the business will adopt with ease to the changes if they happen. The key word in drafting a business plan is to be pragmatic.
Build networks
It has become increasingly evident in modern day that networks are the true heart of business. The wider your networks as a business entity, the wider your spectrum of potential investors, customers and partners that could help you walk through the muck.
Moreover, networking will also help you to meet more experienced entrepreneurs and leaders in business. Such people can mentor you and hone your business skills to measures you never thought you would reach so soon.