Managing growth

Action

Practical tips

1. Be aware of the pitfalls of uncontrolled growth

Know the symptoms and be on the lookout for any to emerge.

Take action to control these (refer to "Controlling your business" information on this website).

2. Plan thoroughly

Plan the growth of your business.

Develop a business plan and direct special attention to cash flows.

Monitor progress and take remedial action if unfavourable variances occur.

3. Build on your competitive strengths

Plan growth in areas where you are competent.

4. Consolidate after each growth of phase

After each phase of expansion (such as a new product or new outlet), update your plan and consolidate before you move to the next phase.

5. Control your cash position

Examine carefully the timing of cash inflows and outflows, not simply the level of cash.

Do not think that because your business is getting bigger, you can start taking more for yourself straightaway.

Think in terms of the cash implications of any business decision you make.

Constantly look for ways to improve your cash flow.

6. Recruit additional employees and be prepared to delegate

Develop a preparedness to let go of what may currently be a hands-on mindset.

Consider recruiting additional employees on a part-time, casual or permanent basis.

Reward and empower your employees and develop a relationship of mutual trust.

7. Upgrade your accounting system and ensure information is provided in a format which suits you

Identify what is critical to the success of your business and learn how to extract information on these factors and monitor progress.

Seek assistance from your accountant or business adviser.

8. Continually reassess your core business

Apply the 80/20 principle to identify your key customers and market to them with a high standard of service. That is, focus your energy where you can make the most difference.

9. Think strategically

Maintain your focus.

Monitor your market and identify where you can build customer relationships.

10. Deal with a banker to whom you can relate

Find a good banker who consults with you and gives timely responses.