Ask yourself these 6 key questions to see if your timing is right for growth
says, Malcolm Gallagher of BizVision,
A key question at the moment should be “Is your business ready to grow”? Irrespective of what is happening in the bigger “Brexit” picture at the moment. In growth, timing is crucial.
You need to decide if your business is in what I call a sensible position to journey on a growth strategy. To help you make this decision, coming up are just 6 deep dive questions to ask yourself.
- How is your business performing against your budget in sales, and costs? I hope you are using some key ratios here. If not then email me firstname.lastname@example.org and I’ll send you the top 3 ratios for small businesses
- Thinking of your available resources, how is your business using those resources to generate profit? Or is it not? Sometimes resources such as assets are bought and they lie unused or underutilised. Also, have you sold off old equipment (say on eBay)) – a few pounds is better than nothing
- Is your market sector expanding or contracting? Or where is it changing? We have seen horror stories about retailers recently and problems about construction businesses. But these changes usually mean there is opportunity elsewhere. Are you missing it? Is your radar working to seek out opportunities?
- How are your competitors behaving? Rationally or not? What are they saying publicly? If you don’t know, you need to start what I call a Comp Set. Take your top 5 competitors and monitor them, benchmark your elf against them, keep a watch for news on their website with RSS feeds or use services such as Mention.com or Talkwalker.com to get a hold of what they are both saying and doing.
- Ask yourself the truthful question of how much cash have you got that is readily available to fund growth. Likely it is not enough so you need to go searching for funding. Do it soon not last minute.
- How well do you use your working capital? Funders will want to know but you should know this NOW not when you want more money.
Okay, there’s your six key questions to get you truly ready for growth. Armed with the answers you can make your growth decision. Which are the most relevant to you? Have I missed any key ones?