There comes a time in the life of every business when you, as the owner, faces a crossroads. This is when it either has to transition from a startup to business or continue plodding along slowly. If you want to maximise the growth potential of your business, or even if you feel like it has reached a plateau and needs an influx of energy. Whatever your own personal situation, here are some tips for growing your business.
Time your growth
The reality is that growth is positive. But the problem is that many businesses do grow faster than they can handle. Processes can become quickly tangled and communication often falters when a business grows too fast. As a business owner, these are not things that should concern you. But these will concern you when they go wrong. So while you want to be able to hit the ground running and enjoy your growth quickly, you need to take some time to analyse if your business is adjusting well to the growth.
Have extra money available
Called an emergency fund, having some extra money stashed for a rainy day will allow you to be prepared should the worst happen. Having a cash reserve can also be useful if an opportunity for growth comes your way. If you didn’t have the cash available, you’d have to say no to the opportunity. And you wouldn’t want to do that just because you don’t have some money available to take advantage of the situation.
Weigh up growth and profits
There’ll come a time when you have to make a decision between the two. It’s obvious that you want both for your business but often you need to make a choice between the two. At some point you may have to choose profit instead of growth, like when your business is growing faster than you can handle. At other points you may want to choose growth first and enjoy the profits at a later stage.
Understand that there’s more than one way to go
There are many ways your business can grow. Growth could mean employing more people and moving into a bigger commercial space. It could mean offering a new range of products or services. Another option is to open a new store or even pivot into an entirely new direction. But remember that not every type of growth is suitable for your business or industry. You’ll need to think carefully about what growth really means for you and your business.
Invest wisely in your business
Never make the mistake of thinking that growth is as simple as throwing money at your business. Yes, sometimes that is a way to grow your business. But you need to make sure you have a plan before you rush out and apply for finance or hire new people. You’ll need to do some market research, craft your business plan and hone your strategy.
For instance, consider whether you’d like to grow your mining business. There are so many options available to secure mining equipment financing which makes it far easier than it may seem. There are many companies which provide business owners with financing and leasing options to acquire equipment without sacrificing working capital reserves.
The first step in acquiring financing for mining equipment is deciding if you plan to purchase or rent equipment. There are benefits to both options, you’ll just need to weigh up your company’s needs. The benefits of buying equipment is that your business will have a tangible asset. In addition there’s likely only a minimal down payment, extended payment terms and delayed payment options. The downside to owning equipment is, of course, that you’ll be responsible for maintaining the equipment.
According to Mining Global, miners should be cautious before splurging on new equipment.
“To save on costs, the best tip to financing equipment is purchase new. New equipment offers lower maintenance costs and usually warranties that protect against largest unexpected repairs. This gives miners the benefit of less downtime for repairs and reduced maintenance costs. It also makes it easier to attract top quality employees that are looking to work with the best equipment on the market.”
Remember, there’s no rush to grow. The tortoise really did have it right. Slow and steady is generally the best way to go.