Turning a small business into a big one is never easy. And the statistics are grim. Only ½ of start-ups survive more than 5 years and only 1/3 make it to 10, what’s the one thing you could do to ensure your company is sustainable? Create a growth strategy for your business, of course.
At some point it will be time for a business owner to determine a company’s future without the owner’s involvement.
For your business to sustain long-term growth, you must understand what sets it apart from the competition. Identify why customers come to you for a product or service.
You got into business to solve a problem for a certain audience. Who is that audience?
Changes must be measurable. If you’re unable to measure a change, you have no way of knowing whether it’s effective. Identify which key indicators affect the growth of your business, then dedicate time and money to those areas.
What are your current revenue streams? What revenue streams could you add to make your business more profitable? Once you identify the potential for new revenue streams, ask yourself if they’re sustainable in the long run.
No matter your industry, your competition is likely excelling at something that your company is struggling with. Look toward similar businesses that are growing in new, unique ways to inform your growth strategy your businesses positioned differently? The assumption that you’re smarter is rarely correct.
Financial modeling is imperative to the success of your plan. You must model a successful business model that will differentiate you from your competitors.
Having the appropriate capital to execute the plan is key. Should you get a loan, bring on investors or finance the plan through the current revenue stream. Whatever the case may be, you must make sure you have what you think you need and more for any unforeseen circumstances.
Transfer the company to a family member,
Sell the business to one or more key employees,
Sell the business to one or more co-owners,
Sell to key employees using an Employee Stock Ownership Plan (ESOP),
Sell the business to an outside third party,
Engage in an Initial Public Offering (IPO),
Retain ownership but become a passive owner, or liquidate.
fo·cal point /ˈfōkəl ˌpoint
noun: focal point; plural noun: focal points
the point at which diverging rays of light meet after reflection, proceeding as one; the center of interest or activity.