A lot of people think that big businesses are born big. That’s not true. Every big business starts small. And every big business grows through a combination of planning, knowing your numbers, and holding yourself accountable. In this blog post, I’m going to show you how each of those factors plays a role in the growth of a small business.
Planning is Key
The first step to growing your small business is to have a plan. This may seem like an obvious statement, but you’d be surprised how many businesses don’t have a plan. They just kind of wing it and hope for the best. But if you want to grow your business, you need to have a plan. You need to know where you want to be in 6 months, 1 year, 5 years, etc.
Part of that planning process is setting goals. And not just any goals – SMART goals. SMART stands for Specific, Measurable, Achievable, Realistic, and Timely. In other words, your goals should be specific enough that you can measure them, achievable so that you can actually reach them, realistic so that they challenge you but are still attainable, and timely so that you have a deadline to work towards.
An example of a SMART goal might be “Increase website traffic by 25% within 6 months.” That’s specific (website traffic), measurable (25%), achievable (depending on your starting point), realistic (again, depending on your starting point), and timely (6 months).
Knowing Your Numbers is Crucial
In order to grow your small business, you need to know your numbers inside and out. You need to know how much revenue you’re generating, what your expenses are, what your profit margins are, etc. This may seem like common sense, but a lot of small businesses don’t actually track their numbers closely. They have a general idea of how much money they’re making and spending each month, but they don’t really know the specifics.
If you want to grow your small business, you need to get intimate with your numbers. You need to know exactly how much revenue you generated last month and what your expenses were. You need to know what your profit margins are for each product or service you sell. And you need to track these numbers over time so that you can see trends and patterns emerging.
For example, let’s say you sell products online and you notice that your conversion rate has been declining steadily over the past 6 months. This is obviously cause for concern. But if you didn’t know your numbers and weren’t tracking this trend closely, you wouldn’t even realize there was a problem until it was too late.
The bottom line is this: if you want to grow your small business, you need to start tracking your numbers closely and monitoring them over time so that you can identify issues early on and take corrective action before it’s too late.
Accountability is Non-Negotiable
The final piece of the puzzle is accountability – If you want to achieve big things, then you need to be held accountable for achieving them.
The same goes for the people who work for you. If they’re not held accountable for meeting their goals and objectives, then they won’t meet them – plain and simple.
It’s easy to get complacent when there’s no one looking over your shoulder, but if you want your business to grow, you need to hold yourself accountable.
Set regular goals for yourself and track your progress against those goals. Find someone who will hold you accountable (a mentor, coach, or trusted friend/family member) and meet with them regularly to discuss your progress. And finally, don’t be afraid to ask for help when you need it! There are plenty of resources out there (including this blog!) that can help you grow your small business into a big business.
So there you have it!
Three secrets to growing your small business into a big business. Just remember that there’s no one-size-fits-all solution here; every businesses is different and what works for one might not work for another. But if you keep these three things in mind—planning, cash flow, and accountability—you’ll be well on your way to taking your small business and turning it into something big!
Are you a business owner? Have you felt like work has just taken over your life lately? We know it can be challenging, and we want to help you by reading this next article!
Are you struggling to make your business work?
Insight CA Limited is a team of experienced Auckland-based chartered accountants and business advisors who can help. We’ll give you the power to see what’s really happening in your business, so you can take control and start making progress. Click here to learn more about how we can help you achieve your goals.
