3 Key Factors of Small Business Growth Planning

Small business growth is never easy. Owners have to navigate a web of challenges which are sometimes unique to their specific niche and location. A great way to cope with these challenges is to focus on simpler plans to follow and develop your future business decisions based on them.

With that in mind, here are 3 key factors of small business growth planning that will help a small business point their ship in the right direction:

  1. Keep your business exactly as lean as it needs to be. Unless you have major investment dollars to play with — few businesses do — it’s a good idea to keep your business as lean as possible. This does not mean cutting corners. Focus your spending on areas that are most likely to gain new clients/customers. Only grow your business if there’s a good chance of new revenue to match. Creating the “best” business doesn’t mean spending as much as you possibly can on every new feature, department, or hire. Use meetings with employees and consultants to glean information to make your own decisions on targeting efficient ways to grow.
  2. Re-invest your earnings. After following the suggestion above, hopefully you aren’t spending every cent of your earnings. When possible, re-invest your earnings back into your business to help fuel your growth.  It eliminates the need to borrow money for growth capital.
  3. Always Pay Your Vendors On Time. Vendor relationships evolve over time. For new businesses, you’re seeing the prices that your vendors put forth for basically anybody off the street.  When your vendor relationships become closer and you prove your willingness to pay promptly, better pricing deals may emerge. If payment problems occur, your timely payment history and loyalty will be taken into account.

Remember, running a business successfully does not need to be complicated.  Keep it simple!

For more information on business analysis, business planning, and ways to grow your business profitably, please check out our website www.portalcfo.com.

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