The strategies for business growth should be considered as the first cycle in the three stages of a business life cycle. These stages are: grow the business, fund the business and then exit the business. The first stage of the three cycles that will be discussed is how to structure the business for growth. The three tips below will help the owner to grow their business.
Three Business Growth Strategies
1. Setting up different companies for revenue streams. This reduces the risk taken for all different activities. Running a group company structure can be more complex with respects to accounting; however, it can also enable funding through equity when the time is right.
2. Work out the revenue stream that generates the highest profit. Trying to offer new services without first generating profitability is pointless. A business has limited resources. The allocation of these resources should be utilized at targeting the streams that give the highest return on capital.
3. The business processes should be outsourced and systemized as much as possible. The key people in the business need to concentrate on the tasks that generate the most profit. Leave the other tasks to the professionals in that area.
These are just a few ways to structure the business for growth. The owner of the business should be discussing these options with their accountant to make sure they are viable.