Planning for Business Growth … and the Unintended Consequences
Sustained business growth requires planning and preparation. The Growth Accelerator Hyper Growth Insights Study 2014 found that 96% of the companies experiencing significant growth had planned for it in the prior year; 88% reviewed the plan in year regularly and as a result 64% met or exceed their targets!
Planning is the key to business growth
Especially in a small company where there are likely to be key constraints that if not addressed will stymie growth in its tracks or worse. There are many things to consider, here are three that Pro-actions regularly see and help solve:
- Leadership Stretch: Over extended leadership is a key inhibitor. As the company expands, the owner who signs everything, is involved in every process and makes every decision is a critical bottleneck.
Key Thoughts: People create the culture required for growth and the role of the leader needs to change. The goal is to create an empowered, dynamic and creative culture where the sum of the parts is far greater than individual contributions. Key to the change is having the right team around you and then leading and managing them appropriately.
- Capacity Stretch: Growth tests every facet of your business; stock control, purchasing, product development, financial processes, manufacturing capacity, supply chain, after sales service. A supply chain that is not fit for purpose or field service team that can’t handle increased demand can bring growth to a dead halt.
Key Thoughts: Plan ahead and understand where the likely pinch-points are going to be. Invest in both capability and capacity.
- Cash Stretch: Growth requires investment; stock, people, capability, product development etc. Without proper planning the required investment can stall your cash-flow with the unintended consequence of stopping growth in its tracks.
Key Thoughts: Success comes from thinking ahead and accessing financial solutions before the critical period arises. Using cash-flow models and taking advice, plan through the investment period so that you can reap the rewards of growth.
If you would like to meet with a Pro-actions coach or would like a telephone call to discuss any aspect of your business, please contact us today!