An aim for nearly every business out there is to grow and expand into a global phenomenon. Of course, while nearly every business does grow, international growth may prove to be a little bit more of a reach. However, growth is still the aim of the game in the business world.
There are many myths that surround business growth, and some of these myths are being cited as facts which can be damaging to small businesses. If you have planned to grow your business as time goes on, then you need to know what is fact and what isn’t, and today we are busting those myths for you.
Myth 1: “More Sales Means Growth.”
The very words ‘business growth’ invokes images of expanding and fattening up the business. It means adding more. So, because of this need for ‘more’, businesses are focusing their efforts on their sales with the idea that more sales equal more business which equals growth. The thing is, you only have to do a little bit of research to realise that high-sales companies don’t always have the high profits. As a business grows, so does its overheads, which means your extra sales get taken over with extra bills. You need to know what it is you want to grow, why you want to grow it and do some financial forecasting before you get going.
Myth 2: “Growth Solves Cash Flow Issues.”
Money is the biggest reason nearly half of all businesses fail. While it makes the business world go around, it’s also a headache. If a business cannot get the right business loans, they cannot grow their product. The reason that it’s a myth that growth solves cash flow problems, is that when your company makes a sale, you need the cash to fund the sale. The more sales you make, the more cash you need and unless you have some of it backed up and ready, you need to keep those sales moving.
Myth 3: “Growth Is Measured In Profit.”
We’ve mentioned before that some industry leading companies are not always the highest sellers. Profit is important, there’s no doubt about that, but growth also depends on your popularity as a company. People will only share and talk about companies that are good to them, so the best way to grow your business is to give people what they are looking for. You could be a profitable company, yes, but that doesn’t mean you are a popular one. Customer loyalty is what will help to grow your business, rather than flash sales and online incentives.
Business growth is often the road every company aims for, but not every company will cross the finishing line. If you are smart about your business goals, you can grow your business in a way that doesn’t just make your company expand beyond your imaginings, but it will make sure you have a cemented and loyal customer following both online and in the community.