Building A Business Hub Online

one stop hub for all the best online strategies

Category: Blog

How To grow Your Business Exponentially

As a business owner you are always looking for ways to grow your business, and as you begin to increase sales and sense new opportunities it is not unusual for your thoughts to turn to expansion. But unplanned expansion can be as dangerous to your business as no growth at all.

Fast growth can destabilize a business giving its owners a false sense of security while the additional sales volumes can eat up more working capital than expected.

If you are aiming for business expansion, keep these things in mind.

Watch Your Overheads

The biggest danger in running a business expansion program is the loss of profit that comes from uncontrolled spending when you are just too busy to keep track of what is happening. Overhead expenses that were under control in the stable business situation can grow rapidly to cover the extra expenses associated with a bigger scale of operations – transport, inventory, rental on larger storage space, and all the rest will eat into your working capital levels if not watched closely.

Track Your Profit Margins

You would normally expect that you can increase sales volumes and achieve the same profit margin, or even better since overheads will be spread across a greater amount of sales income and because the cost of goods goes down as you buy in greater quantities But this is not always the case. Additional sales often come with unanticipated costs and reduced efficiencies that can actually decrease your margins. You need to regularly track your profit margins to see if you are really growing or just running faster to stay in the same place.

Employ Strategically

As you grow it seems natural to hire more people but a sudden influx of new employees can introduce problems ranging from changing the dynamics among the old team and creating morale problems to higher insurance and employee benefits costs. Consider alternatives such as retraining some of the existing employees to pick up new tasks, taking on freelancers and temps or maybe even outsourcing some of the work. Balance your use of temps against the training investment they require and the skills you will really need to have on tap in the business because these people will take their knowledge and skills with them when they leave.

 Don’t Underestimate Cash Flow Requirements

A growing business is hungry for cash to fund higher debtor and inventory levels as well as increased overheads and capital investments. Typically, most small business owners will seek a business loan to expand operations. But the danger here is that if the expansion doesn’t go according to plan then the business can very easily end up in the red with a bad credit record. Look for the cheapest and most flexible source of funds from accredited providers and have a detailed and realistic projection of income and outflows to fully understand your need for funding.

Keep Customers Loyal

Good customer service is what drives your business success, but ironically it is also one of the first things that tends to be forgotten when businesses go into expansion mode. Employees get caught up in the ramping-up activities and lose track of what is happening with customers. So the very customer service that helped you grow your business in the first place becomes difficult to sustain and customer defection occurs. Securing new business through the growth phase can also be hard to factor in to activities. The key to retaining customers is to maintain adequate staffing levels that ensure current customers continue to receive the attention and service that has made you their supplier of choice. More info: https://www.inc.com/guides/small-business-growth-strategies.html

Forecast Cash Flow

Sudden business expansion can involve a heavy investment to handle the production of new orders that won’t translate into cash in the bank for some time. In the meantime the business still has to pay its creditors. Poorly managed or inadequate cash flow is a major cause of expansion failure. Building a strong understanding of your cash flow needs when going into a period of rapid growth will make the process much less dangerous to the business’ survival.

5 Business Growth Strategies For Exponential Success

1. Grow your profits, not your revenue – It’s easy to get blinded when you see your revenue growing rapidly. Don’t forget that your expenses are surely growing as well, perhaps even faster than your revenue is. Growth creates more growth and many businesses fall into the trap of embracing the growth before laying the proper foundation. The mismanagement of growth can cause efficiency to drop and overhead costs to rise radically. Don’t sacrifice profit margins to increase revenue – it is not sustainable business growth strategies.

2. Develop your infrastructure – That brings us to what are sustainable business growth strategies: the businesses that surprise their growth spurt are those that have a well-developed infrastructure. Make sure you have systems in place to allow your business to absorb and respond to new challenges effectively and efficiently, such as clearly-defined work procedures, communications channels, short and long-term goals, etc.

3. Have a bold vision – Speaking of goals, what are yours? Every business owner has a vision, their business wouldn’t get very far without one, but there are a lot of them out there. What separates you from the pack is the boldness of your vision. In this age of instant gratification, if you’re not trying to find a new or ground-breaking way of meeting people’s needs, then you shouldn’t get to comfortable with the idea of long-term growth.

4. Maintain loyalty – Just because your business is growing doesn’t mean your head should be growing. Nobody gets successful without the help of their partners, employees and customers. As your business grows, don’t neglect the people and the community that helped you to get this far. “Think global, act local” is one of the business growth strategies that apply no matter the shape or size.

There are many ways to grow your business but you have to be careful not to like that growth run away from you. A negative cash flow is the reality for many young, growing businesses – but it doesn’t have to be. Follow these to ensure your growth is sustainable.

Expand Your Business With Social Media

There is a new hype about advertising and spreading the word about your business. Old fashioned advertising doesn’t work, at least not like it used to. Placing an ad in the newspaper is just not enough. Now you put it in front of millions of people through social media marketing networks, and it is archived for years to come.

So, what is social media and how does it work? In short how can you use social media to grow your business?

Social Media is an interaction through web-based and mobile technologies; it is all those sites we use for fun and for business: Facebook, Twitter, WordPress, YouTube, LinkedIn and so on. Having a business advertised is no longer one-way and static technology; now you can create and distribute your content through the web using various social media options. Whilst there are potential costs, in the main it is free, not time consuming, easily accessible and interactive. Though simple as it is, it’s crucial that you invest some time and skills to work it to your advantage. One of the main attractions of social media in growing your business is that it gives small businesses and entrepreneurs the equal opportunity to make a big name along side already existing large and well-known corporations.

Social media comes in many forms – blog, microblog, social networks, media-sharing sites, social bookmarking and voting sites, review sites, forums and virtual worlds are only some of the most popular.

A blog is best described as writing articles or posts. Its software allows different social features that include blogrolls, subscriptions and comments making it ideal for marketing purposes.

Through blogs, a company speaks to its customers about the new and cool things it does. Posts are what make the blogs; they can be any length from few words to many pages but to make the most of it, sticking to one topic is crucial. The most important element of blogging is consistency. Making sure that you blog regularly by setting a clear goal of posting either daily, or weekly for a whole year. Long posts have to be structured in such a way that they include scannable items like images, lists and subheadings. Use comments made by readers as positive or negative feedback. Use permalinks or permanent links to link your blog to other social media platforms. Making sure your site image establishes authority, themes and designs as well as content is what attracts readers and makes your blog trustworthy to read regularly. Getting to know other bloggers in associated industries or your area of expertise increases visibility of your own blog. Use them to help grow your business.

Micro blogging is type of blogging that limits the size of posts to a certain number of characters. The best known is Twitter, which has a limit of 140 characters. It is easy to use and requires little investment of time, but it quickly creates buzz and insight. Through micro blogging you can promote your other social media content, which contains more news and information, informs about new blog posts and keep your readers in the know about your business. Having a good avatar and bio ensures an optimized following and tweeting, allowing the people you already know to tweet about your business for others that may be interested in your business news.

Social networks such as Facebook, MySpace and LinkedIn allows you to build direct and personal relationships with your customers. While for people it is customary to create profiles, a company should create pages. Social networks offer a wide range of special features, which are important to use in order to have the best possible introduction of your company’s business. Make sure that you don’t just rebuild your website, offer content that is exclusive for social network. Interaction is the key component to all social media, through social networks your customers can create content about your company making it organic and more convincing. Another step to help grow your business.