Planning for Growth
Deciding to grow your business is an important decision. If you choose to grow, you will need to find the right time and choose the right type of growth for your business. Essential things to think about include:
Why grow your business?
Growing your business can help to:
- Increase sales and market share.
- Capitalise on new opportunities.
- Expand the products and services you offer.
- Employ more staff.
- Deliver efficiencies.
- Strengthen the position of your business.
- Respond to competition in the marketplace.
However, growing a business is not without risk. It’s essential to consider both the advantages and disadvantages of growth.
For example, disadvantages could include:
- Additional borrowing requirements.
- Increased capital requirements, such as a bigger workforce or more equipment.
- Increased pressure on your staff.
When deciding whether to grow your business, it’s a good idea to think about:
- How is the business currently performing, and is it the right time to grow?
- What is your business currently doing well, and what are the opportunities for growth?
- What resources will you need to facilitate growth?
- Will you need to expand into bigger premises?
- How will you finance your growth?
- Will there be any impact on customers and the level of service you offer?
- Will you need to take on more staff, or train existing employees?
- How will organisational and business management processes need to change?
- Will you need to upgrade your IT systems?
Carrying out a SWOT (strengths, weaknesses, opportunities and threats) analysis of your business can help you decide the best way to grow and develop your business.