How You Should Grow Your Small Business
When an entrepreneur draws that initial business plan, the projection is always based on growth. Very few if any business owners can admit not to wish for business growth or plan for it, most companies see themselves expanding in the coming years after their establishment. The media presents lots of useful write ups on the importance of small businesses to the economy of the United States. Most of the articles inform small entrepreneurs of the significant roles their ventures play. Below are tips on how to grow small businesses followed by reasons outlining the importance of small businesses.
How to Grow A Small Business
Open a Branch In Another Location
While many entrepreneurs are discouraged from carrying out physical expansion as a method of growing the business, there are several options in existence today that shield business owners from incurring losses. First, a number of Co working spaces are available in several cities, and an entrepreneur does not have to engage in hiring new employees or seeking physical office space. For instance, The Executive Offices of New York offers full-time offices, day offices, and virtual offices. Therefore, an entrepreneur looking to have the new branch located in New York’s Fashion District can rent the EONY space plus their services.
The new business location should have the potential to increase sales and connectivity. For example, an entrepreneur in New York City may consider looking for rental office space in buildings which are nearer to vital infrastructures and trade centers such as the Penn Station, Port Authority and the Macy’s. The Global Energy Efficiency company, for instance, is ranked one of the fastest growing businesses in New York and they are located in the Bronx because close to sixty percent of their employees are based in the Bronx. The company is able to grow because of the nearness of workstation to the residence of their employees. Should they seek to have a new location, they would probably consider where the majority of the remaining forty percent reside to accord them similar convenience.
Other than that, it is important to consider the economic and consumer trends a business to determine if the company is stable enough to try a new location. The decision to get to a new place of duty should also be based on the kind of growth the company has undergone in some years and the location choice should best suit the business goals.
Partner With another Business
Establishing an alliance with a firm that offers similar types of services or goods is another easy way that companies can expand. When two businesses align themselves, the resulting strength overrides individual weaknesses, and that positions them well in the process of maintaining a competitive advantage in the industry. It is important to look for a company that will bring in something advantageous like more capital or new technologies that can help propel your organization to the next level. That is why business owners must carry out enough research to identify the most suitable company to partner with. And after the formation of an alliance, there are must dos that would help keep the relationship healthy. The dos include practice openness, maintain balance in all aspects of the business by sharing profits and workloads as well as sourcing for new customers.
Go For The Best Technology
Technological advancements and the availability of cloud technology have made available a range of systems that business owners can choose from depending on the kind of operations that the firm is engaged in. Cloud computing does enhance work efficacy by increasing collaboration between employees in an organization. Workers of the same company can upload files to and retrieve from the cloud saving on the time such processes would have taken in using the traditional firm’s system of operation.
Modern technology also saves a business from losing valuable data following theft, damage, fire and computer crash incidences. When sensitive business information is stored in the cloud, the information obtains a secure back-up. That means, there will be no slowdown of business because of missing files or information. Uninterrupted operations minimize costs and places the company on the growth path.
Moreover, many companies are using cloud services such that if a company does not upgrade to cloud technology, its competitive advantage suffers. With cloud computing employees can work from any location and meet the customer needs. However, the business manager should take into consideration the safety of company files saved on cloud technology. Services like Sharefile have the “enterprise” service which enables the manager to have a centralized control and management of business operations. Thus, it is crucial for small firms that have not embraced cloud technology to do so and start the growth journey.
Manage Finances Effectively
The best way for a company to manage its finances well is to employ a competent book keeper or accountant. Today’s accountant is someone who has the capability to view all the financial books within a short time because of the advanced technology. That means the accountant has a view of how the business is fairing financially at all the time and is capable of making an informed analysis and offering the best advice. It is through such advice that a small business can draft its growth plan.
The modern business environment is characterized by frequent changes in customer sensibilities and product life cycles. For small businesses to keep up with these changes, they need to diversity as often as the industry dictates. Diversification enables the company to have several sources of income that increase profit margins and most importantly covers up for the low seasons. Furthermore, diversification increases an organizations presence in the marketplace. Diversification includes the modification of a product or service to make it more appealing to the customers. The modification can be through the production of a cheaper version of the product or service so that it captures a larger market when compared to its first makeup. Other ways of diversification include venturing into the production or sale of related products or services so that they go together. Selling online to complement the traditional methods of selling is another form of diversification that small businesses can adopt.
The good thing with diversification for small businesses is that the changes do not require much investment and complicated processes to accomplish as it is to larger firms. Besides, small enterprises are not run by large boards that will need a lot of time for consultations and communication flow. The leadership of small companies needs to exert resilience and agility to push forward with the proposed change.
The Significance Of Small Businesses
Small Firms Employ More People
The highest number of employees in the United States work for small businesses. Reports by the Small Business Administration indicate that more than fifty-six million people are employed in small businesses, and the small entrepreneurship accounts for over ninety-nine percent of all the employers in the country. Apart from that, the small businesses provide different types of job opportunities, and because of the many jobs provided by these enterprises, the economy grows.
Small Businesses Grow the Economy
Just as mentioned in the previous paragraph, the contribution of small businesses to the economy is significant. Small businesses take innovation and growth to the communities in which they operate because they attract young talent who put into practice new ideas and products. Besides, the small businesses contribute to the efficient functioning of the larger companies by the provision of various services through outsourcing. The presence of numerous small businesses within local communities also contributes to the development of those communities because the revenue generated from taxes is used to improve the education and other social services of the local communities.
Small Businesses Export More
Exporting to other countries contributes to the growth of the American economy. According to the Small Business Association (SBA), ninety-seven percent of the recognized exporters are small businesses. The SBA data also indicates that export value of small businesses has been on the rising trend since 2006 standing at 35.5% compared to larger firms. Exportation is a means through which companies increase their profits, and that means the potential for more job opportunities