Even in tough economic circumstances, it is beneficial for every business to think about growth. You can be sure that your competitors will be looking to obtain your customers or your share of the market. There are many beneficial reasons for growth such as:
- Greater profitability by spreading your overheads. You may need a telephonist whether you have 10 or 20 people. The more you expand, the greater the value you will get from each item on your list of overheads.
- You will have more customers. This will give you greater security. If some customers switch to your competitors, you will still have a larger volume of business.
- With more people in the business you will have much more experience in your workforce. They will come with knowledge of things which work well in your competitors and can be utilised to improve your business.
- If you are working in more market sectors for an increasing number of customers, you will increase the business’s capability considerably.
- You will have greater purchasing power with your suppliers because you will be giving them a greater volume of business and will receive better discounts.
- Providing you have a sound approach to managing your business, growth usually results in greater efficiency as well as economies of scale.
- You will attract better people. Everybody likes to be a part of a team where things are happening and there is a greater chance of everybody developing their role.
- Success attracts more (and better) customers. They gain more confidence in giving you their custom if they can see that they are in “good company”.
- Striving for growth changes the whole attitude of a business. It becomes much more outward looking and likely to succeed.
- Growth creates a greater number of sales leads as you begin to develop the network of contacts created by your customers, staff and suppliers.
It is important to determine your reasons for growth. Constantly planning is beneficial even if your plans have to be tempered by the economic environment from time to time.