Building a profitable business is much more than launching a website and hoping for the best. The smart entrepreneur realizes he needs a plan, and a long-term one at that. Growth initiatives are definitely part of a premiere business strategy. Thinking about challenges and opportunities that could come up allows you to stack the odds of success in your favour. Here are six growth initiatives you should think about adopting in your business plan.
Managing Operating Costs
If you’re not watching your operating costs, they can get quite out of hand and quickly. You’re approving work orders, signing off on supply purchases, and hiring additional staff, which can add up noticeably. You need to have a definite plan together before these operational costs escalate. The profitability of your business greatly depends on you managing your operational costs.
Improving Profitability Ratios
How do you plan on improving profitability over time? Are you expecting reduced supply costs will just generally occur? It is critical that you plan for profitability improvements. Unless you want your revenue-to-expense margins to take a nosedive, you must develop a plan to address ways to increase company profits.
Maintaining Workforce Productivity
Workforce productivity is another key growth initiative that many business owners dread facing. It’s perfectly natural for your employees’ enthusiasm and job performance to slowly wane over time. In order to position your company for success, you need a strategic plan in place to address productivity. You could look at gamification to rewards-based incentive programs to keep your workers engaged and productive.
To keep your business running smooth, you need an inventory management plan. You could be hurting your business with too much inventory, as well if you have too little; customers may go elsewhere if your inventory is too old, or you don’t have enough to meet demand. You should be prepared for supplier shortages as well as seasonal product demands, so you can ensure your sales don’t take an abrupt dip.
To stay ahead of the competition, you need to incorporate product development into your growth initiatives. Realizing that your sales will stagnate if your business never innovates is an essential business truth you need to address. Constructing a product development strategy helps you to remain excited about your business growth opportunities and gives your sales people opportunities to look forward to.
Once your business becomes profitable, you’re going to have competition. You could face local competitors and international knock-offs. Now, you won’t be able to stop the copycats from copying your business, however, you can plan for their arrival. Will you try to buyout your competitors and/or hire their staff? Will you patent your technology? Or trademark certain systems you’ve developed? That old cliché ‘failing to plan is planning to fail’ was never truer than when it comes to your competition. You can deal with potential competitors by having a plan for such a strategy in place.
Putting growth initiatives into your business plans benefits your company’s readiness for success so you’re not blindsided by challenges you should’ve had the smarts to plan for. Your top priority should be to build a company that survives over the long-term. Unless you want a flash-in-the-pan business, you must have a strong growth strategy. Are you ready for the challenges above as you grow your business?
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