No matter the stage your business is at, growth will always be one of your objectives, especially if you’re an entrepreneur. Growth is an abstract notion and many quantify it with financial numbers. However, financial progress is one of many indicators. Something as simple as shifting from a home base to an office space on rent can also be considered growth. That said, what are the other aspects that indicate a growth in business and what are the steps young companies should take to see such growth?
Read on and find out.
Aspects of Business Growth
Many equate financial progress as a form of business growth, and they are not wrong. This method is the easiest to quantify a rather complex and abstract concept. Numbers make it easier to visualise the impact your business has on the market, and the bigger the number, the more significant your impact.
Of course, having cash flow does not necessarily mean that there is a significant profit margin. Having profitability means being able to improve your revenue and cut cost simultaneously. The less you spend, the more money you have on your hands.
3. Customer Service
The essence of every business is to provide a type of service. Whether you’re involved in B2B or B2C sales, curating an excellent experience for your customers will improve not only your relationships with your clients, but also boost your reputation.
4. Employee Retention
Customer retention is a great indicator of business growth, but so is employee retention. A low turnover rate means spending less on training expenses, efficient and high quality of work. On the other spectrum, a high turnover rate also deals a significant blow on your company’s reputation.
Below are tips that will help young companies experience all-round growth.
The advancement of technology has made communication much more accessible and convenient. Now, the difference in locations or countries is no longer a barrier. Technology has made Adam Smith’s vision of a free market, possible.
Establishing loyalty is identical to retaining customers and you do this by delivering a service that will satisfy your clients. This may be in the form of a reduction in response time, overall fantastic customer service, or even gifting your clients with gifts if you have the financial capacity. Let your clients know that you genuinely appreciate their presence, even with a simple email. Don’t just make a good impression the first time around, ensure that this impression lasts and stays.
This is where establishing a rapport with your clients comes in. More so in the case of a B2B market, your trading partners and suppliers are your gateways to strengthen your presence in the current market, or even give you access to an entirely new market altogether. If your relationship with your partners is pleasant and there is a good rapport between you two, your partner might even guide you on how to navigate in the new environment properly.
Capitalise on Social Media
Social media has become an indispensable marketing tool to build your brand presence. Your company website becomes the place where customers gain information about your product and your social media accounts become the tool that will help to spread your brand presence. An improved brand presence will attract potential customers.
Social media also allow companies to gain insight into what their customers want and how they behave. The number of likes and the engagement you have with your clients serve as important data. This data will then inform you of the next business decision to take up.
Maintain Financial Discipline
Lastly, it’s the most prominent element, financial progress. For young businesses to experience sustained financial growth, they must be astute in handling their finances. Young companies should focus on establishing healthy cash flow and concentrate their expenditure on revenue-generating activities such as marketing and product development. However, do this in small increments. It’s best to take one thing at a time, especially when your cash flow is unstable.
You will need to also take the benefits and cost of a project into consideration. For instance, you need to weigh the benefits of having an office space and the cost of office space on rent. If you deem it necessary for generating revenue, especially in the long run, go ahead!
To conclude, growth is a complex matrix. Whilst it is challenging, make sure to not coop up in one form of growth and neglect the rest. All types of business growths are essential to produce a good business since they have a symbiotic relationship with each other. These tips will help you put your foot out of the door but being flexible and adapting to the volatile market is proven to be the best help your business can have.