I have spent a good deal of time recently thinking about a couple of questions:
- What is the essence of a business?
- How can a business grow?
The essence of business?
Can I suggest the following as 4 key elements that make up pretty much any business you care to mention:
- A product/service
- An ability to deliver that product/service
1 & 2 together make up The Business Proposition
- A target market
- Engagement, communication and relationships with contacts in that target market
OK, all of these can be drilled-down into, expanded and detail added but if the proposition can deliver real benefit to the target market and the market understands and acknowledges this benefit, they will do business with you. Not all of them and not all the time but the business is there.
Planning for Growth
So why is your business the size it is and performing as it is? Well, because it is! This is where you are. If you want to grow your business, you need to change your business. You need to change the equilibrium between the 4 key elements. If you have a well defined (written down?!) development strategy and plan, and you are following it then no doubt your business will be moving. Your management of this process will help make sure you are moving in the right direction. How you do this is up to you! If this is your business, congratulations, you are (to use a cliché) working on your business, not just in it. If you can deliver your proposition cost-effectively, you have the platform to grow a successful company. BUT: in my experience, ask 100 SME business owners if they have a written and active business strategy that they use to manage their business, at least 90% will say ‘No’ or, at best, ‘Well, it’s in my head’ If a business has no clear strategy that the management team are working to in order to move their business forward, do they have any realistic chance of growing the business, other than by ‘striking lucky’?
If you want to grow your business, plan for change.
Planning will take you out of your day to day business but I suggest this is a good thing. If you are too busy working in your business, things will just happen around you and you will simply deal with the consequences. Believe it or not, there are several excellent sources of support available at the moment, both financial and expertise. They will not grow your business for you but they can help you make the time to plan and sustainably grow your own business. I know. I’ve been there and done it! If you want to know more, drop me a line.
