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When you begin a business, growth is not at all times the most important goal. In the starting, it’s about surviving the first few months and acquiring your first customers. But what happens when you get past the survival stage? The focus is on managing growth and related issues.
According to Intuit’s 2024 Business Solutions Report, 51% of small businesses aiming for rapid or sustained growth are (*5*)have trouble improving systems and operations to come to growth. Scaling brings latest challenges, including manually organizing growing data, hiring employees, and determining which digital tools are value investing in. Here are five strategies that will take your growing small business to the next level.
Stay in control of your money flow
As more money flows in and out, tracking money flow can develop into difficult for corporations trying to scale. It’s no wonder that nearly half of growing small businesses (44%) still struggle with this, according to Intuit Quickbooks customer survey. Moreover, 40% of small businesses had to dip into their money reserves to cover shortfalls. Building solid money reserves is one of the best ways to protect your enterprise and give yourself the flexibility to take risks that fuel growth. Most accountants recommend saving at least six months of expenses to weather unexpected challenges.
AND latest report by Intuit found that 66% of corporations deal with invoices that are more than 30 days overdue. That’s a lot of money that should revitalize your enterprise. To avoid late payments and ensure faster money flow, set clear payment terms and stick to a consistent invoicing schedule to avoid surprises. Make it easy for customers to pay by offering multiple payment options and encourage early payments with small discounts.
Fight against rising costs
Rising costs are hitting most businesses today, and small businesses don’t have the same resources as large corporations to cover these expenses. No wonder 58% of growing small businesses say so rising costs are their biggest challenge.
To combat these extra costs, start by auditing your current expenses. Eliminate subscriptions, software or services that not add value and renegotiate with suppliers for higher rates. If rising costs are impacting your organization’s profitability margin, it could be time to rethink your pricing strategy. You’re not alone – 40% of small businesses have already raised prices to offset rising costs, and one other 35% plan to do the same. To raise prices effectively, track market trends, see what your competitors are doing, and reinforce the value behind each price increase to your customers.
Like many business owners, The art of bowsQuickbooks customer Liz Pham tried to combat rising costs in a variety of ways, relying on each market assessment and conversations with her top customers and sales reps to make cost-cutting decisions. Instead of having a showroom in a specific region, they realized they may hire a sales representative to sell their line in that market, which might significantly reduce costs but still increase sales.
Additionally, it evaluated its pricing strategy based on conversations with mass customers and sales representatives, which resulted in not only increased profitability, but also offering a higher pricing strategy that was consistent and easy for customers to understand.
Scale your team because it grows
Employment is becoming an increasing challenge for almost half (47%) of growing small businesses. Larger corporations may offer more competitive salaries and advantages, making it more difficult for smaller corporations to attract top talent. The situation is even more difficult given ongoing talent shortages in many industries. To make the biggest impact, focus on the areas of your enterprise that need the most support. Prioritize hiring for positions that will ease the burden on your teams and allow you to focus on the greater picture.
Retaining great employees is just as vital as hiring them. According to QuickBooks Small Business Analytics Reportadvantages akin to health care, paid day without work and 401k plans. they contribute greatly to making people comfortable. These advantages can show your team that they support you, without draining your budget.
Invest in the right tools
Now that your enterprise is growing, it is time to upgrade your digital toolkit. About 29% of small businesses already use at least eight digital tools to help improve efficiency, save time and reduce errors. And with 80% of growing corporations adopting latest technologies quickly, it’s clear that these tools help them stay efficient and competitive.
Automation is a big part of this transformation, with 89% of corporations saying it is critical to success. Using technology to automate tasks like accounting and inventory management can increase productivity while providing smarter insights for higher decision-making that can move the needle. When selecting latest digital tools, consider your budget, learning curve, ease of use, and their ability to integrate with other systems and grow with you. The right technology will keep you competitive and ensure your enterprise stays on track to scale.
Diversify your sales strategy
Relying on only one sales channel is dangerous. If the market changes, you would lose. Whether you sell products or services, investing in e-commerce, even if it is not your primary sales channel, allows you to add latest revenue streams that you can invest in existing growth opportunities. According to the latest QuickBooks data, growing small businesses are more likely to invest in e-commerce, and almost half (49%) consider online sales to be their most vital channel. This is a huge jump compared to just 33% of smaller corporations.
Overall, 72% of small businesses sell online directly or through third parties, while less than half of smaller businesses (47%) do the same. Start by selecting the right e-commerce platform. Think about payment processing, shipping options, and how well they can scale for your enterprise. Make sure your website is optimized for a seamless customer experience – after all, a poor online experience can turn off potential sales. Use social media to promote your products, engage with customers, and offer free shipping to encourage more purchases. Finally, focusing on the customer experience, akin to adding chat support and soliciting feedback through surveys and other channels, can improve your offering and loyalty.
Growing your enterprise comes with its challenges, but that’s where the fun begins. Tackle these problems head-on, learn as you go, and watch your enterprise grow.