In today’s highly competitive market, starting a small business without challenges can be difficult. But positioning it for future growth can be even harder.
With limited resources compared to larger companies, it is key to determine the right strategies and tactics to make sure you succeed. By combining proven techniques, efficient methods, and convenient tools, ensuring the consistent growth of your business can be accomplished in no time at all. We summarized the 5 main key elements for successful small business growth for your below:
Tip 1: Data Driven
Measuring tools are important so you can accurately quantify how much progress has occurred. By having quality data, it’s easier to make decisions to grow your business.
-Use reliable tools such as Customer Relationship Management system or CRM data.
-Track your web analytics from trusted sources like Google.
-Always make sure that your revenue data and bookkeeping is up-to-date.
-Place all your Key Performance Indicators (KPIs) in one convenient location.
-Avoid manual data integration, which is time-consuming and prone to errors.
-By identifying variables and statistical data, perform a predictive analysis for your business and set your goals
-Do not forget to evaluate results and compare them to the current ones in use.
-Keep in mind that decisions should always be based on established facts and verified statistics, not just by your judgement.
Tip 2: Flexibility
Compared to large companies, small businesses are always affected by inevitable challenges. Learning how to manage your business amidst challenges, whether the economy slows down or you are hit with a natural disaster, is essential.
-Assess the current state and condition of your business.
You cannot amend to changes or think future initiatives if you don’t understand and know the present situation of your small business.
-Don’t be afraid of changes. May it be a minor process correction, major organizational revamp or a huge structural reform, embracing change is the key towards an agile and adaptive business.
-Be flexible enough and leverage technology tools that will help you manage your business better. It preserves your competitive advantage by keeping innovative ideas and following latest business trends.
Tip 3: Customer Loyalty and Acquisition
Nothing is more important than maintaining a loyal following of customers. With so many new tools, this is easy to accomplish with the help of social media sites such as Twitter and Facebook. But don’t forget the good old trusted methods of drawing in customers.
-Let your loyal and recurrent customers feel that they are valued by providing rewards programs. In addition to building loyalty, you could also use your existing customers and provide incentives to help attract new ones, whether it’s buying one get one free or a discount.
-For those who have tried your product or services, ask them for honest feedback. Other customers often look at online reviews before making purchases.
Tip 4: Proper Budgeting
Increasing sales and bringing more money to the cash register is good, but without proper budgeting and understanding expenses, you don’t have a full view of your actual performance. If you want to guarantee the success of your business, always stay one step ahead of your expenses. Use specialized tools or software to efficiently supervise and have a good control over your operating budget.
-Identify the “Must Have” and “Nice to Have”
-Always prioritize the must-haves like electricity bills, rent, salary and other essential expenses.
-Ideally, you should have several months of advance payment to cover these operational costs.
-Consider your risks and potential losses
-Think about the roadblocks, untimely expenses and financial challenges inherent to your business.
Identifying business risks allows you to plan a realistic budget by acknowledging these potential setbacks.
-Hire a bookkeeper. We at Booxkeeping can help!
Tip 5: Employee Management
Don’t just hire anyone. Take special precautions when employing workers by carefully screening each and every candidate. If you can’t beat the salary packages and attractive benefits of big time companies, let your employees feel they would be more valued and have a pleasant work environment.
-Follow the minimum requirements of the job, providing exemptions but with restrictions.
-Mentor your employees to minimize mistakes, avoid errors and to promote job satisfaction.
-Show your leadership skills by following business goals, vision, mission and target objectives.
-Eliminate all distractions that can affect productivity but allow your employees to de-stress and refocus.
-Resolve disagreements and misunderstandings professionally, actively listen to your employees and always treat them with the utmost respect.
Growing your small business is always easier said than done. But with right planning and implementation of strategic methods, this can be achieved with flying colors. Remember not to rush things and always identify the key elements that can make or break your business. Stretch out your resources and create feasible plans to ensure a stable growth over time.