Building a Strong Foundation for Business Growth

One of the difficulties we quite often come across when we talk to business owners is their concerns around how they can take their business to the next level, they feel they have hit a ceiling in terms of future growth potential and are finding themselves outside their comfort zone.  You need to build a strong foundation for business growth.

There are several expansion strategies available to businesses dependent on the market and the size of the opportunity. 

Kevin Petley, one of our Business Growth Advisors regularly works with businesses on plans to expand. He shares his experiences and tips for other businesses wanting to do the same. 

 

Start with a strong foundation for business growth

Before embarking on expansion planning with our clients, we focus on the underlying business ensuring its foundations are strong – and we’d recommend other business owners do the same. We would look to eradicate any ‘single points’ of failure, cut inefficiencies, automate tasks and streamline processes. Most importantly we would look at the end-to-end operational capabilities, along with people and structure, i.e. do we have the right people in the right roles to support our ambitions. In some cases, reorganising or recruiting in advance of expansion might be required. 

Keep existing customers happy  

Then look at existing customers to confirm you are offering the best possible service to them, loyal and engaged customers are cheaper to retain than seeking new ones and often fuel referrals. It’s so important that we don’t take our eye off existing clients as we drive for growth and expansion. 

Understand the market and opportunities 

With the confidence that we have our house in order, the next step is to understand the market and resulting opportunities. This can be achieved through 

  • Researching existing audiences, using surveys, feedback, and the plethora of analytics available. Don’t underestimate the power of this information. 
  • Study competitors – Understand their strengths and weaknesses, what are they doing well and how can you exploit this. Remember differentiation must be more than simply being based on price. 
  • Identify trends and gaps – Look for under-served niches or emerging demands. 

As you look at the potential opportunities identified, depending on your budget and your specific market, next steps would be to:  

  • Diversify channels – Invest in SEO, PPC, social media, influencer marketing, and email. 
  • Be clear about your brand and what you stand for, this is particularly important in crowded markets to ensure you standout. A strong and memorable brand builds trust and loyalty. 
  • Use data-driven campaigns – Track ROI and double down on what works. 

What’s your offer? 

In terms of your product or service offering, key here will be  

  • Launching new products and services based on customer feedback or adjacent needs identified through competitor analysis. 
  • Package or bundle services of existing products and services – This allows you to add perceived value and increase average order size. The critical thing here is not to assume that your current clients understand your full offering unless you have specifically told them. There’s a great opportunity to squeeze more out of these clients. 
  • Offering subscription or recurring models – These help to ensure more predictable revenue streams and to provide some level of certainty. 

 

Options for Expansion 

Expansion can also come through a range of areas which are certainly worth consideration, but always subject to market analytics and the level of investment available, these include: 

  • Expanding the geography of distribution, both UK wide and overseas. Open new locations (if applicable) – Target regions with proven demand 
  • Go online or omnichannel – Sell through your website, online marketplaces, or retail partners 
  • Leverage partnerships – Collaborate with complementary brands or distributors 
  • Franchise or license your model – Low-capital way to grow reach 
  • Train and upskill your team – Internal development beats external hiring long term. You will be surprised how much value can come from your existing staff if they are encouraged to contribute, the value of an adaptive culture 
  • Consider loans or grants – Especially if you’re growing infrastructure or hiring 

 

Manage Risks 

Due to the unpredictability of the world we operate in, it is vital to manage risk as you grow. Don’t overextend, avoid chasing growth that strains cashflow or indeed the culture of your business, in other words don’t lose what makes you you. It is also really important to have contingency plans: prepare for supply chain issues, market shifts, or competitor moves, as much as you can. 

Most importantly review your financials regularly, ensure margins are maintained. Use KPIs to guide decisions, and most importantly avoid gut feelings. As the saying goes: Turnover is vanity, but profit is sanity! 

 

Find out more about the options to fund the growth of your business here: Funding Business Growth