When looking up any information relating to ways to grow your business, you will find many helpful tips, answers and advice on how to be successful in business. So while there is a lot of information on the ‘how’, there’s very little on ‘why’ a small business should look to grow.
For those who are running modern start-up businesses, the goal may have always been to grow your business so the ‘why’ never comes into question. But if you are running a long-established small business, there are a number of reasons why you may not be so quick to look into how to grow your small business. This could be because of feeling like the growth could put your business at risk and change or compromise your current lifestyle. There may be a reticence to delegate responsibilities to others or a want to avoid dealing with further regulation. These are very common concerns to have if you have been running a long-standing small business or family business. However, there are far more positives and benefits to consider when it comes to growing a small business. One such benefit is the economies of scale. By growing a small business, it increases the potential to benefit from buying bulk products, items or produce and getting higher credit terms from suppliers. While it may be easy to focus on the potential risks associated with growth, there’s no denying that growth can unlock far more profit for your business.
That’s because a turnover that is larger than your current turnover will exponentially increase the ability for your business to generate higher profits. There is even a potential to mitigate risk too. By growing your small business, you open up the potential to diversify your product or service range. If your business is threatened with risks such as advancements in technology or competitors, you will not just be reliant on one revenue stream. Therefore, if your original area of business is threatened – either temporarily or permanently – you can rely on other services to help reduce losses. Inflation can also be a constant risk to smaller businesses. By continuing to grow your business, you can protect your business from the risk that inflation can cause to your costs. Finally, another benefit of growing a small business is that there is a perception that bigger businesses are less likely to fail. Clients can be put off by smaller businesses because they can perceive them to be weaker than larger businesses. For B2B clients, stability can be more important than even cost or quality. So as you can see, growth can provide much help for small businesses when it comes to reducing risk and increasing profits. So now that you understand why so many people grow small businesses, it’s now time to understand the ways to grow your business successfully.
But in order to understand how to grow a business successfully, you need to find good, reliable advice from an experienced head. As we said, the internet is full of ‘free’ advice, but every business is different. A B2B consultant with experience in helping smaller businesses can help you discover the ways to grow your business in a controlled, sustainable manner.