7 Crucial Steps for Small Business Growth in 2020
“If we are growing, we’re always going to be out of our comfort zone.”
Quoted by John Maxwell
This is never more true in the world of businesses. This year you may have planned different growth strategies but pandemic has taken a turn over all your decisions, it has prevented your business from seeking its full potential. But certainly, there are several other ways to ensure manageable and profitable small business growth for your small business even in unprecedented times like covid-19.
Creating a growth strategy for your business will ensure sustainability. A growth strategy is beyond just envisioning long-term success. If you’ve no tangible plan then you’re actually losing business or increasing your chances of losing business to competitors. There is no specific recipe for instant results and nothing is guaranteed. But you can accelerate growth and reach milestones with clear goals and strategies.
Take the following crucial steps to ensure the growth of your business:
End of Year Tax planning from the Get Go:
For many small businesses, the year end purpose is to get your taxes in line. However there are other things that adds value to your small business. Many small businesses find that their bookkeeping is always lagging behind. When you lag behind in bookkeeping, you’ve no idea where your business is at financially and worse your business is running blindly.
Following a process of handling accounts receivables, accounts payable, asset reviews and book reconciliation will allow you to calculate financial reports for each quarter that will help you to set realistic growth plans. A good bookkeeper will design a bookkeeping system to meet both your needs and budget.
Start outsourcing your bookkeeping:
Bookkeeping can be time-consuming and complex. As a small business, it’s vital to maintain records that will add value to your business. You may handle bookkeeping yourself, or hire an in-house bookkeeper or outsource your bookkeeping. But if you’re a small business then you may not want to hire a full time bookkeeper for your business, this will only add up overhead costs. You mostly need someone who can update your books a few times a month.
Financial Forecasting is the most important benefit you can get from outsourced bookkeeping services. It’s vital to get your books updated on a regular basis. You need to set clear guidelines and deadlines for bookkeeping tasks. Make sure you’re not only receiving information on time, but accurate information as well. Your bookkeeper will help you to make better financial decisions for things such as cash flow, revenue & expenses, profit & loss, hiring or downsizing, disaster planning, opening new locations etc.
Financial forecasting is the greatest step towards growth. You never have to take big risks if you have a clear financial plan and forecast to predict big financial risks. The key to financial growth is to have a reliable bookkeeper that can manage books and work with you to understand your goals.
Learn from the year before:
If your bookkeeping is not helping you to add value to your business then it’s really hard to say to keep the books current. Your bookkeeping system must be able to provide you with unique information that will take your business towards your goal. It must aid you in making key business decisions. You must communicate clear objectives and goals with your bookkeeper. Once you have clearly stated your expectation to your bookkeeper on how you want it and when you want it, you may hold your bookkeeper accountable to meet or exceed your expectations.
Identify your ideal customer:
You started a business to solve a particular problem for a certain audience. But the question is, who is that audience? Is that audience your ideal customers? Identify your true target audience, reach out to them as you adjust your business to stimulate growth. Focus on your strength rather than improving your weaknesses, this way you can establish growth strategies.
Invest in Talent:
Your employees are in direct contact with your customers, so hire people who are inspired and motivated by your company’s value proposition. It’s important to have the right team to ensure fast growth. Be cheap when it comes to office furniture, marketing budgets and holiday parties. Hire few employees but pay them well enough. The best ones will always stick around even in bad times when you cut their compensation.
Suggested Reads – How to Fill Out IRS Form 4562?
Have an exit strategy:
You should always have an exit strategy, even if you have no plans to sell. It helps your business up for success. Sometimes, exit strategy may foster restructuring or merger. The intention of an exit is to have an overall valuation of your business. It will help your business to stay organized and work towards glory. If in the worst scenario, selling your business looks like a great option, then you will have everything in a row.