Tackle Business Growth in Three Strategic Steps
A GROWTH MINDSET MEANS DEVELOPING SKILL SETS TO TACKLE NEW OPPORTUNITIES AND CHALLENGES.
Are you familiar with either one of these statements: “think like an entrepreneur: entrepreneurs are gurus at tuning into customers’ needs, instinctively knowing when it’s time to make a bold move” or its counterpart: “think like a CEO: CEOs are analytical, strategic movers, making data-driven decisions about their customers and markets”? When it comes to managing our businesses, we often need to embody both mindsets. A third statement is that of a growth mindset — someone who evaluates both opportunities and obstacles with an ability to learn and gain new skills.
This is the mindset I find most impactful when analyzing plans for expansion. Growing your business takes a lot of time, research, and hard work. It can be easy to get overwhelmed with the range of opportunities on your horizon. Expanding your business often means putting in more hours than you already do, hiring additional employees, and maybe even getting a bank loan or other funding to cover the increased cost.
On the other hand, maintaining the status quo during times of uncertainty can also be a danger. If you fail to adapt your business, you risk being left behind as the market changes or competitors erode your market share.
Whether you start with small steps or you push for accelerated growth, this 3-step strategy plan employs both your entrepreneurial instincts and your CEO analytic savvy.
ONE: Apply a Growth Mindset
Brainstorming ideas (think whiteboard and brightly colored Post-It Notes) is a great way to motivate your team and drive creativity. What is essential at this stage is to cultivate ideas that are aligned with your mission and vision. Brainstorming allows you to open up your mind to new possibilities and formulate viable and feasible solutions.
If you’re beginning to brainstorm ideas, apply a growth mindset against these growth strategies:
Existing customers. Try driving a deeper connection to your customer base by increasing your marketing efforts or focusing on customer service. Driving sales with the products you already have is a key sign there is traction, or healthy, organic business growth in your company.
New customers. Tapping into new customers with your current products is another strategy. Research different customer segments from your existing base and determine if there is a viable need for your services.
New locations and new channels. Entering new locations, territories, or distribution channels is another way to drive growth. Expanding from DTC to a retailer or from shop to shop to an improved online presence are examples.
New products or services. Newness is a great way to drive growth. By developing new products to sell to your current market and/or new customers, you can continually expand your reach.
Acquiring another business. Buying another company can be a fast route to growth. While it requires significant investment, due diligence, and a keen understanding of your industry and market, it is a viable way to grow your organization.
TWO: Access your Resources
Growth must be managed to effectively ensure that your culture, employee, and customers experience improves. Analyzing your business in a structured way can provide the insights and intelligence needed to make the right choices as you begin to execute your expansion plans.
When analyzing your business resources, break them down into these main areas:
Your Team’s Support. To achieve success, you need a solid team that can successfully run your current business so you can focus on expansion. Reflect on your leadership and culture as indicators your organization is capable of meeting the demands of growth and expansion.
Your Operational Capabilities. Scaling can be viewed as intentionally orchestrating all the operational tasks in your organization. Skillfully aligning your operations to meet increased activity and customer demand may require hiring and training new employees or onboarding new customers.
Your Finances and Cash Flow. Expansion and growth should be sustainable and profitable. New revenue streams may require significant capital, cash flow, and the resources to sustain operations. Develop financial scenarios that anticipate and support your business decisions.
THREE: Be Mindful and Honest.
Lastly, be mindful and honest about where you are in your growth, stage of life, and finances. This is a time to adapt and change. Good companies become great because of their ability to be customer-focused and plan strategically while blending great people with effective technology. It can take patience to find out what works.
Expanding your business is an exciting time for any entrepreneur. While its demands are high, the potential upside should be motivation enough to begin exploring new opportunities. You can accomplish expansion strategies with the right resources and mindset.
If you are looking to grow your indie brand, Thielstyle can help you develop a strategy to get there! Reach out at info@thielstyle.com. We would love to help guide your through the process.
At Thielstyle, we deliver the financial intelligence that empowers your business success. Our CFO & Accounting Services provide financial strategies, models, and metrics for beauty stakeholders to confidently lead their companies. When new goals arise, or when challenges are faced, we are ready to help. You have an advisor to provide a plan of action.