Why business growth matters
You know that business growth is the key to your success – if your business is not growing then it must be stagnating or shrinking.
Not only that, but growth has an impact on the size of your business and ultimately the value of your business. If you plan to exit the business at some point then business growth is an area that will require your focus.
John Warrillow, author of the book ‘Built to Sell’ researched 14,000 businesses that had been sold or had an offer made on them. Warrillow discovered that there are several key areas that influence value, and one of these is growth. The value of a business shows a direct correlation with its growth.
To achieve business growth, whether in a small business, a medium enterprise or a large organisation, scalability is key.
The importance of scalability
Scaling your business makes it more likely that you will be able to build a business that has some inherent value beyond the time that you put into it.
If you currently run a business with a broad list of products and services then there may be changes you need to make to enable you to scale. A broad business is in danger of being dependent on the owner, as the owner is very probably the only person within the business who has all the knowledge required to provide such breadth of service or product in a successful manner.
A business selling fewer products or services to a greater number of clients will be a much better candidate for scaling. By selecting a small number of products or services that fit with the Trifecta of Scalability, scaling your business will become easier. Namely, what you do needs to be teachable, valuable and repeatable.
How BizSmart can help
At BizSmart we work with SMEs, small business owners and micro-businesses to help them grow in a sustainable way. One of the pitfalls of small business growth is that if growth happens too quickly and the business can’t keep up then service levels are affected, having a negative impact on the business. Hence we work with businesses to create SUSTAINABLE growth.
Our team of experienced business growth advisers work with businesses both one on one and via our online resources to inspire and support business growth.
BizSmart helps business owners of small and medium sized businesses to create value and scale their businesses through sound practical business support by providing insight, clarity and business support with a real determination to help you succeed. You can access blogs like this and more besides through our free SmartRoom service here.
Building a business for value gives you many more options as you are creating a business that has a value separate from you as a business owner. This gives you greater freedom to take time out, to retire or to sell the business in the future. If you are keen to understand more about business growth and how you can go about building value in your business then click here to find out more about our Value BuilderTM programme.