Growing a small business

Every business can have better earning potential, but you have to work to see results. ADEMOLA ALAWIYE highlights the steps to grow a small business

 Growing a small business amid today’s competitive market challenges can be a huge task. Often, businesses focus efforts on simply doing more of what’s already being done – running more ads or making more phone calls. Instead, experts say small business owners may achieve success by changing their approach – by thinking big and trying new avenues their competitors have missed.

No matter how small a business is, experts say it can grow into a big one. Indeed, stories abound of small scale businesses that grew to become multinational companies. Despite this, experts say many entrepreneurs do not believe that their small businesses are capable of sharing an amazing story of growth.

As a result, many entrepreneurs do not even bother to take steps to grow their businesses or position them for growth; they are contented with them as they are. In keeping things that way, they often leave their businesses badly exposed to failure.

According to the Chief Executive Officer, Starnex Consultancy, Mr. Kunle Adebiyi, a study conducted some years back showed that only one out of every five businesses live up to their fifth year, which means four would have died before they are five years old.

Experts say the stronger a business is the more chances it has of surviving. In strengthening a small business, some of the recommended steps by experts are explained below.

Set goals, keep records

Without goals and records, it is difficult for you to strengthen your business. If a student does not know what he has been sent to school to do, if there is no result given at the end of the term or session, it will be impossible for that student or his or her parents to determine whether the performance is good or the set goal is likely to be achieved. That student, in essence, is like a rudderless ship. This applies to a small business. Nevertheless, experts say many small businesses have limited data about their expenses and income; they cannot give an account for transactions and have no specific targets to pursue. To grow a business, experts stress that such a situation should be avoided. The business should have a clear goal and keep track of its activities or dealings.

Evaluate

Once a business has records of its dealings and a clear goal or goals, it is important for the management to evaluate the progress made from time to time in line with the set goal(s). Questions should be asked about how the business is faring at the moment; is it at the level expected now? Is it likely to achieve set targets?

The performance of the products or services also ought to be considered while evaluating the business. That will make it easier for the problems to be detected and solved so that the business can grow.

Through such evaluations, entrepreneurs can determine whether they need more hands or less or whether their marketing strategy is effective or not.

Get professional help

Experts say many small businesses get it wrong when it comes to seeking professional help. They feel they are too small for such things as an audit, a company lawyer or to employ the services of a consultant. But experts argue that while it is possible for some entrepreneurs to spot and solve problems in their businesses, many others will be better off with professional help and assistance. If a business has been having challenges employing the right people, it is only wise for it to consider engaging the services of a recruitment firm. No doubt, this may mean parting with scarce funds, but it may save the company more in the long run. This is because with the right personnel, the business will be more productive and likely to achieve its goals. Having to hire and fire people frequently can limit a business in many ways, according to experts. Apart from having to pay off the misfits, the business will virtually be stuck on the same spot, losing clients in the process.

Make changes

When things are not going smooth for a business, when it is becoming weak competitively, experts say dramatic changes may be required. It doesn’t matter if the approach you have been using all along kept the business running smoothly for two years. If things are really going badly and an entrepreneur discovers (with the help of a professional or research) that something has got to give, that entrepreneur has to ensure it does. At times like this, there is no room for sentiments. Sometimes it is so bad that a business is required to rebrand. Surely, many entrepreneurs are attached to the names of their businesses. Yet, sometimes a name change is required for the business to survive. According to experts, some of the most successful entrepreneurs today are those who have a knack for making dramatic changes, when the situation calls for it.

Strategise

Change is constant, and people can get bored easily. As time changes, strategies that once were untouchable became ‘relics’ or trash that had to be cast aside. There was a time when phrases such as “The best thing since colour TV” and “The best thing since sliced bread” were common. This is no longer the case. People no longer pause at the sight of sliced bread or colour TV; even 3D television sets will fade away with time. This applies to business strategies. Hence, experts advise that one of the ways an entrepreneur can strengthen a small business is by coming up with new strategies regularly. In the 90s, packaging items such as tomato paste and milk in sachet were the trend. Now, that is no longer a unique selling point for businesses that deal in those items.

Go for the best you can afford

Big companies are always on the lookout for the best. The best hands, the best strategies, the best location, etc. They know that with these, they can beat their competitors and make the best returns.

Small businesses should aim for the same (at their level) and gradually build on it. An entrepreneur is expected to strive to acquire new skills and encourage his employees to do the same.

If the company is into sales, then it should ensure that its employees have adequate training in sales. Knowledge is power and entrepreneurs should know that by acquiring additional knowledge, they are in a better position to help their businesses to grow.

Getting the best is not only in terms of strategies, personnel or returns. It also involves ensuring that the business operates based on best practices in the industry.

Keep employees motivated

Business development experts often argue that no matter the equipment a business has, no matter the investment made, it would all come to nothing if the wrong people are hired to actualise the company’s goals. They further argue that it is one thing to employ the right people and another to get them to constantly deliver or stay productive.

One way of achieving this is to keep your employees engaged and motivated. Motivated employees will not only do what is expected of them, they are willing to take additional responsibilities.

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