There is no denying the sheer importance of the success of small businesses to any economy which seeks to have developmental areas such as job creation catered to by more players than the government. Consequently, that’s why forward-thinking officials in charge of overseeing small to medium enterprises work hard to make the business environment conducive to facilitate the growth and success of these businesses, but if you’re lucky enough to have your small business boom and undergo some growth and expansion which constitutes success, you need to know how to manage it all sustainably.
Aim for organic growth
When it comes to the growth of a small business, having the size increase naturally is the way to go. That’s what you should aim for and organic growth simply means that your business grows in a “natural” manner, with clients coming to you as opposed to you going out and “creating” them by perhaps trying to make them see that they need your product or service. There’s absolutely nothing wrong with effectively “creating” a problem and then offering up your solution for sale to solve that problem, but when we talk about small businesses then you don’t want your core customer base to be that of people who can do without your product or service.
When there’s an economic downtown, that product or service which they really don’t need will be amongst the first to be done away with, so you want to target organic growth through targeting customers identified as those who really need your product.
Determining your business’ natural optimal size
Not all businesses should have an exit strategy to list on the Stock Exchange as IPOs of this sort indicate that there would be a change in the power structures within the business and there will likely be a mega change in the manner through which the business would have to be officially managed. It’s okay to sit on some profits for a little while if you don’t know exactly what to do with them, with product development and improvement perhaps making for a better focus if you really must spend the money you’re making as part of the growth of your business.
If as part of the growth of your small business you’ve identified the need to expand, it would have to be done strategically, such as making sure to only expand into areas which are already closely related to your core business.
Maintain accurate record-keeping practices
Quite a good portion of what goes into the growth and expansion of a small business rides on the record keeping practices maintained, so if for example you wanted to get some funding via platforms such as The Business Backer, certain standards in keeping financial records and general operational records would have had to have been adhered to.
Good record keeping practices make for a good practice either way, simply because you want to be able to look back someday and be able to point out the exact factors and conditions which contributed positively to the growth enjoyed.