Planning for Business Growth
Written by Samuel Muriithi for Gaebler Ventures
Once your business is beyond the start-up phase you must start thinking about the next level to which you would want to elevate your operations. How important is business growth and what does this effort entail?
The proactive entrepreneur will also be on the lookout for business growth opportunities so as to further secure the sustainability of his/her current operations.
In planning for business growth the entrepreneur will need to make an assessment of several metrics including market share, turnover, sales and profits, and staffing considerations. The surest way to assess the viability of business growth opportunities is through assessing projected sales and profits.
It is prudent to constantly identify business growth opportunities and to make moves to acquire the viable ones among these so as to consolidate increased profits and market share, to ensure business survival, to optimize utilization capacity, and to optimally prepare a business' worth for a profitable eventual exit.
Planning for business growth is therefore all about preparing for business expansion and business exit. The first aspect of these is where most focus is applied in this context. So as to choose the most effective business growth opportunity you must ensure that it is complementary to your business' current products and services. The opportunity must lie within your scope with respect to your strengths and weaknesses. You must also be adequately prepared with the requisite financial and material resources.
Succeeding in making use of a business growth opportunity depends on a number of factors. As the entrepreneur you must have the right mental attitude; a mindset that is focused on achieving success. You will need adequate prior planning for this growth in terms of accurate information flow and market knowledge. Your capitalization must be sufficient and here this covers the monetary and infrastructural requirements. You also need to have a workforce that is adaptable to the new challenges at hand.
In planning for business growth you have to appreciate the implications that will come with the anticipated expansion. There will have to be changes in the control, leadership and coordination of the organization. New plans will have to be made for information management. Personnel requirements will obviously change as will matters of finance and public relations. Planning for business growth must therefore consider issues of staffing and training, a new premise perhaps, new/improved technology, and improved customer service structures. Outsourcing can also be considered where applicable.
Samuel Muriithi is a business owner in Nairobi, Kenya. He has extensive international business experience in the United States and India.
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