Managing sustainable business growth
By James Murchison - Principal at Murchisons
Business growth should always be seen as a good thing. And any business owner would assume things are going well when the company is expanding.
However a savvy business owner is aware that business growth comes with a set of requirements, which ensure growth is actually ongoing and sustainable.
We’ve pulled together a list of 3 key elements to keep you on track while your business is going exactly where you want it to: above and beyond.
1. Business Growth & Segmentation
Business growth can be manageable.
Always keep an eye on all revenue-generating segments of your business. You’ll notice how some generate more efficiently than others, meaning they deliver on more effective time investments from your end.
With those segments identified, take a step back and reconsider where your energy is best placed. That isn’t to say drop one segment and pursue the other, but rather shift your primary focus accordingly. Chances are you’ll put your business growth on a steeper upward trajectory.
Accurate segmentation can be the difference between stagnation and fast growth.
2. Business Growth & Velocity
When your business is going through a phase of fast growth you’ll be faced with a set of considerable challenges. You want to have all the right pieces in place to make sure your business structure can sustain that fast expansion. Two key pillars are essential:
i. Process. You need to have watertight processes in place which apply from any small to all big actions, tasks and transactions. Without the right process fast growth can lead to a stressed organisation and potentially inadequate delivery.
ii. Resource. Good resources are hard to find, but they’re well worth the effort. Think of strong resources as a key role in manageable fast business growth. Having the right skill positioned at the right point within your business structure can represent the cornerstones of sustainable and fast growth.
Getting the right skills embedded within a functional system of process is no small feat. But it’ll set your business up to thrive through a much desired period of growth within a small window of time.
3. Business Growth & Relationships
Lastly we want to shift our focus away from your own business and look at the most important external factor deciding whether you’ll thrive or not: your clients.
Getting the right clients on board will determine the course of your business. And while most new clients are a welcome sight, not all will be the right client for your specific business model.
Some will have an expectation that you as a business can’t meet and it may be necessary to turn them away because the connection points just aren’t aligned.
But there is an alternative. It can be as easy as an honest conversation.
You and your potential client would assess real requirements and their value with transparency, working your way towards the most suitable common denominator, while ensuring you’re both part of the equation. It’s not always an easy conversation to have, but it is always worth it.
In decades on the market we’ve learned that a client will always appreciate these honest conversations, which inevitably lead you to one of three outcomes:
i. Capitulation. You agree to continue doing what you’re doing, at the original terms of the relationship.
ii. Separation. You agree to part ways based on a decision that mutually beneficial terms can’t be achieved.
iii. Compromise. You build a common middle ground based on honest expectations from both sides, whilst allowing space for positive growth over time.
Clear communication is key. You’ll need to be as honest with yourself and with your client, otherwise chances are an established relationship won’t grow in the prosperous direction intended.
So while there’s a lot to pay attention to when nurturing the growth of your business, you’ve put yourself on the right track if you focus on accurate segmentation, sustainable structures and honest relationships.
If you’d like to hear more or have any questions, please don’t hesitate to call us on 02 9959 5599.
