No one is in business to fail and most business owners view achievement as the ability to successfully grow beyond their wildest dreams. There are many ways to grow a small business. The key is to manage the growth in such a way that it can be controlled. Keep in mind that growing too rapidly can sometimes be more devastating to your company than not growing at all. Controlling the pace allows you to fully research the market’s desire for your product and service, which can help determine whether the trends suggest that there is a strong market for your product or service today but no demand tomorrow.Expanding Your Business
Each of you as a business owner must assess whether or not growth is for you. If so, what are the alternatives and the most appropriate vehicles for expansion?
Keep a Journal of New Ideas
Small Business owners should keep a note pad available in order to jot down unique and creative ideas that may be promoted through the company. Generally, our most creative ideas come in the night when everything is quiet. A good habit would be to keep a pad and pencil on a nightstand. These ideas can take many forms, some are tried and true and have been proven in other companies, some may be spin-offs from a current operation, others are unique, innovative ideas that can be used in a series of environments SBIR, STTR.
Start With a Road Map
If you are currently operating a small business, you should already have a written business plan, or some type of strategic plan, to guide the direction of the business.
A well written business plan clearly defines the goals of the company and outlines methods for achieving these goals. Simply stated, the business plan helps you understand where you are and how to get to where you want to be. A comprehensive business plan is the premise for successfully launching any business venture for growth and expansion.
Conserve Your Resources
Most of us are excited about growth opportunities and the possibilities for expansion. Operations should remain simple until the company is up and running economically and efficiently.
Acquire Appropriate Levels of Financing
In order to grow a small business you will most likely need to raise money to finance your expansion plan. There are many alternatives to financing your business, including taking on partners, establishing a corporation and selling stock, or borrowing money from family, friends, or a bank. In addition, you may want to talk to a venture capitalist. In any event, you will need to write a loan proposal which describes your business, explains how you plan to use the loan, and your plans to repay the loan. A business plan will be extremely useful in writing the loan proposal. In asking for financing, you need to be very simply and specific about how much money is needed. Provide accurate projections and don’t be shy about asking for exactly what you need to optimally operate your business. A typical checklist for preparing for a bank meeting includes:
PERSONAL INFORMATION-personal Financial Statement, 3 years tax return, Summary of Business expertise and resume.
COMPANY INFORMATION- Last 3 years Corporate Tax return, Last 3 Years Accountant Prepared Financial Statements, 12-24 Month Pro-Forma Financial Projections, Accounts receivables and Accounts Payables Aging, Trade Reference, Current Bank reference, updated Business Plan.
GENERAL INFORMATION- Equipment List/Values Appraisals, and Construction Cost Breakdown.
Use feedback from a smaller site to launch a larger one
When a small business owner decides to take on an expansion project, the current site and business operation becomes the main source of support. You will need to determine the strength of this support, as well as the company’s ability to accept such a risk. This will require an internal organizational assessment which may include a personal evaluation, management assessment and/or departmental feedback. Once the feasibility of the expansion plan has been decided, a growth team should be established.Develop a media and promotional campaign
Planning ahead is important to get the most for your advertising dollars. Deciding where and when to advertise is crucial to your continued success. Some of the issues you will want to consider are:
Consider Your Customers
You may be ready to market your product or service, but are your customers ready for you? It is especially important to time your promotional materials to the convenience of your buyers. For business to business direct mail, materials are best received on Tuesdays, Wednesdays and Thursdays. Decision makers are too busy to read your mail on Mondays and Fridays. For more information on marketing your business, call our office (301-934-7583) and schedule an appointment with one of our counselors.
Network and Follow up on Prospects
Networking, if done correctly, can greatly expand your business. Done poorly, it is a waste of time. One of the basics of networking is to remember that networking is giving. Business associates and friends help each other in many different ways and for many reasons. This is one reason why selfish people fail at networking. To get started, you may want to structure your efforts through a trade association or formal networking group. There are numerous techniques for turning prospects into loyal customers. Consult with one of our counselors about building and maintaining client relationships and successful sales techniques.
Stay Organized
As a small business owner, you should consider purchasing a daily planner to keep yourself organized. It does not matter if your system is manual or a computer program. The system does not have to be elaborate as long as it will help to manage your busy schedule. Develop a system for profiling and tracking your progress. One example is the development of a customer sheet that has space to record initial contact, follow-up efforts, and special offers or objections. This system should be used in conjunction with your traditional filing system. If possible, summarize your files and keep them at a fingertip.
Stay Abreast of Trends in Your Field
Most successful business owners read several trade publications and newspapers weekly and many books relating to business issues. Becoming an authority on issues related to your business is crucial for the success and growth of your business. Take classes that expand your present knowledge or teach new ideas. Be sure to include your employees in this opportunity as well. If help with tuition is not within your budget, allow time off for classes and seminars. Your employees will benefit and your business will profit as well.
Benchmark
Benchmarking - the process of identifying and learning from the best practices anywhere in the world - is a powerful tool in the quest for continuous improvement. Benchmarking uses qualitative and quantitative performance measures to establish goals for improvement.
Staff Support
Our SBDC counselors have either gone through the process of business expansion or coached other businesses through this crucial time. Contacting a counselor is easy.
Call 301-934-7583 and ask for a counseling session.
