Considerations for successful growth

Although growth is what most businesses aim for, it is not always clear how to go about achieving it. In this article we look at some of the key considerations for the growth of a business.

Ensure there are sufficient managers in place.

Of course, right up-front, a company needs people to manage its growth. And these people should be who are skilled, competent and ready. A business should not open a new branch or division until it has someone ready and able to manage it. Many operations fail in their attempts at developing a new branch or division because a single person has to split his or her time between two concerns often resulting in two poorly managed facilities. In general terms then, growth must take place from the correct management base.

Ensure there is ample market opportunity.

Secondly, consider whether there is a market in place to allow the growth envisaged. Trying to grow in the face of a declining or no market is usually disastrous. Growth is easiest in the context of growing markets.

Ensure there is sufficient financing available.

Thirdly, trying to grow without the money to do so may result in bankruptcy. A lack of capital means the company overextends itself and is unable to service its debt. Clearly some struggling companies have saved the day by acquiring another company with assets that could be converted to money but these are the rare exceptions. A prudent businessperson relies on more than possibility.

Ensure there is good reason for growth.

Fourth, ask whether it really is desirable to grow. A company must be prepared for the increased demands on time and entrepreneurs should not simply give in to the growth mania that permeates society without proper planning and forethought. Although the businessperson who wants to stay small is somehow thought of as less worthy than the growth-minded one, it is not a shame not to grow, and not growing may often be the smartest thing to do.