Growing Your Business
There is more to growing a business than getting new business in the front door. Without a solid foundation that assimilates, feeds and channels the new cash flow into the overall vision plan, failure may occur.
Cash flow is awesome, the caveat being what to do with that income? Instant gratification, a new car, a new home, a new tech gizmo, a European vacation, etc. all have a tendency to be recipients of the additional funds. Thus many small businesses spend the money without planning for reserves, future growth and personal (family) expenses. A lack of foundation planning is also responsible for the ebb and tide of cash flow. Lack of planning often results in a short-term crisis.
The following represent the key result areas that a small business has to consider as it grows:
· Profit: should be an explicit goal
· Planning: Vision Based Planning to include Operational and Contingency planning
· Organization: Explicit role description
· Control: formal, planned system of organizational control including objectives, targets and measures.
· Management Development: Identification of requirements.
· Budgeting: Management by standards and variances
· Innovation: Being a change leader, not a follower, willingness to take calculated risks
· Leadership: Knowing when to listen and when to seek help.
Each of these key result areas should be incorporated into a small business’ growth process.
I left Marketing out of the key results area. Marketing (growing the bottom line) is an ongoing process that involves and influences all the other key areas. The BizQuack Vision Based Business Plan focuses, to a large degree, on marketing as the growth vehicle for a new business.
MAKE IT A GREAT DAY!
Tips & Advice by Nick Petra, CFP – Founder of Strategic Duck and BizQuack
Comments are closed