Assess Your Options for Growth

I stumbled upon an article that discusses Assess Your Options for Growth. Here are a few good points that I wanted to share:

It is important to evaluate whether you want to consolidate your business' position or find ways to grow. If you decide that your priority is growth then you need to plan carefully if you are to succeed. Growth has its risks, but the right strategy can deliver stability, security and long-term profits.

1.???Consolidate Your Existing Performance

Before you pursue any growth strategies, it's essential to make sure that your business is running efficiently. While you may be spending more time and resources on developing the business, you need to be sure that the core of the business is still performing well. It's vital not to neglect your existing customer base as this will underpin your growth and, equally importantly, provide the cash flow you will need during this phase.

2.???Diversification

While diversification can pose some risks - such as costly delays and mistakes owing to a lack of knowledge or expertise in the new area you're looking to cover - it can also limit the impact of changes in the market. In simple terms, if you supply one product or service and it falls out of favour with customers, it leaves you very exposed. If you have two or more products or services and the sales of one of these drops, at least there will be revenue coming into the business through the other.

3.???Partnerships, joint ventures, mergers and acquisitions

Partnerships and joint ventures can offer both partners significant benefits, including sharing experience, skills, people, equipment and customer bases. Through a partnership or joint venture arrangement with a complementary, non-competitive business, you may be able to open new markets or improve your offer to existing ones. It’s important to be very careful whom you link up with. An agreement defining the terms of the partnership or joint venture is essential and further legal protection is advisable.

Want to know more? Head on over to the full article here for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts at [email protected]; or call me on 0467 749 378.

Thanks,

Robert

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