What's your Growth Potential?
Does your business have a strategy for deciding how and when to grow? Most business owners have a goal to grow sales. Some have a sales strategy in place, but most don’t take the time to step back and think about how to grow their business beyond what they do now.
In the Value Builder System, one of the eight key drivers of business value is Growth Potential. This driver looks at how your business can grow with the highest potential and lowest risk. If you’re thinking about selling your business in the next 3-5 years it’s important to be able to show a future buyer a history of steady growth and a plan that leads to future streams of profit. If you’re not looking to sell in the near future, going through the Growth Potential exercise will guide you to identify the most profitable strategies for growing your business.
- It helps you see current possibilities. Too often, businesses get caught up in what they are doing now without looking at what they could be doing. Going through the Growth Potential exercise often reveals low risk opportunities that can be a great source of revenue for your business. You’ll want to ask questions such as:
- Is there a new market that could make a great fit for your existing products/services?
- Or, is there a new product/service that could easily be sold to your existing markets?
Your business should look for these possibilities at least once a year. It will help you align your sales strategies and identify what can be done right now to increase revenue.
- It starts conversations on where the industry and market is going. In the last few decades, we’ve seen industries interrupted by technology. The way we shop, watch TV, take pictures, communicate, etc. have all changed rapidly. With these changes we’ve seen businesses of all sizes struggle to keep up with evolving industries.
Going through the Growth Potential exercise will identify and open new opportunities instead of focusing on how growth has been achieved in the past. There are some strategies that you won’t be able to implement right now. It might be too costly. You might not have the right training or equipment in place. Some possibilities will be eliminated, but you will see other possibilities you want your business to work towards.
Focusing on Growth Potential will help you set strategic goals to grow with the market within your industry. It’s a way to make sure your business is proactively focusing on profitable growth.
Overall, most businesses want to grow, and understanding your Growth Potential is a strategic way to plan for profitable growth.