What does growth mean in business? Is it just increasing revenue? Gaining more customers? Adding new locations and staff?
When we think of growth, there is a lot more to consider than just the financial aspect. Growth incorporates a multitude of factors, including revenue, profit, market share, personal development, professionalism, and reputation. Everyone has strengths in certain areas and will struggle with others. With the right guidance and direction, navigating these challenges can be much easier.
Revenue:
In order for your business to grow and ideally become profitable enough to pay you for your efforts, you need to generate revenue.
Having a well-thought-out revenue-generating strategy will give you a clear idea of your revenue goals and how you’re going to achieve them. Consider tactics for customer acquisition and retention, the distribution of revenue through various channels of your business, and how your model will need to adjust as your business grows and expands. Essentially, creating a roadmap helps alleviate a good deal of the stress caused by lack of planning for the unknown. It also streamlines the process by focusing on ways to create and grow your revenue while avoiding common pitfalls that are often overlooked.
Profit:
If your pricing is too low or your expenses are too high, it won’t matter how many new customers you get, how many new sales you make, or how much new revenue you bring in—you won’t make any more profit for the business. A full pricing structure review is a great way to determine if you are sustainable. Additionally, looking over your expenses to identify ways to be more efficient will help you achieve profitability and, in doing so, sustainability for your business.
Market Share:
Increased revenue does not always mean that you are holding your own in your industry. If the industry is growing by 10% and you are only growing by 5%, you may be making more but still losing ground to your competitors. Consider expanding into new markets, diversifying products or services, or exploring alternative customer demographics.
Personal Development of You and Your Team:
Being able to create sustainability and efficiency within your business will have a direct and positive effect on your profitability. What can you do to make yourself more competitive, adept, or effective? Consistently improving yourself—whether through courses, seminars, hands-on practice, or simply reaching out to experts and other successful professionals for advice—can bring value to your organization and your clients. Professional development for both you and your team will significantly improve revenue and profitability. Think of it as another way to invest in your company’s success.
Professionalism and Reputation:
Who you are and how you conduct yourself will speak volumes for your business. The experience your prospects, customers, vendors, and even your competition have with you (or with those representing you) will be integral to growing your company. This is the part of your business plan where your purpose, passion, and authenticity will shine through.
Ron Farrell & Nicole Toren
Ready to take your business to the next level?
At Grounded Growth Coaching, we’re here to help you unlock your full potential, develop a clear growth strategy, and guide you on your path to success. Reach out today to schedule a consultation and start building the future of your business with confidence!