Becoming more skilled at working “in” your business, doesn't always translate to business growth. In fact, with all you're doing to run your small businesses, it's easy to lose sight of the two most important influencers of small business growth — your goal for growth and your growth strategy.
Small Business Growth Defined
Simply defined, a growing business is one that is growing their revenue through increasing customer demand. It experiences a growth in revenue and cash flow at rates faster than those in the economy.
A growing business does more than pay overhead or eek out a measly paycheck for you. It produces enough money to reinvest in opportunities to continue to grow the business.
Small business growth isn't an event in good times alone. A growing business, set up correctly, grows through good times and bad.
The Daily Double
The two things you need to know to grow your small business are:
- What is your goal for business growth? Research shows that businesses that experience an annual growth rate in excess of 20% are most likely to withstand whatever is thrown at them.
- What is your growth strategy? Like rungs on a ladder, there are several growth strategies you can select. The higher up the ladder you go, the greater the risk — and potential for growth. Know the growth strategies that guide your movements.
Consider this: More than 60% of American's businesses since 1980 no longer exist. Will your small business suffer such extinction? Not if you know the answers to the two vital questions about your business growth.