For this edition of The Business Corner, we are going to talk about a topic every business owner is interested in. Success comes in many forms, but most entrepreneurs want to know how to prepare their business for growth.
Accounting
As more revenue is generated, it is crucial to establish an accounting system to track revenue and expenses accurately. Reviewing financial statements, such as the Profit and Loss and Balance Sheet, can help you identify efficiencies and cost savings to trim unnecessary expenses. QuickBooks is an option that many small businesses use as they grow, and it can also be beneficial every April during tax season.
Marketing
It’s terrific that you’ve reached a specific revenue target (e.g., $100,000, $500,000). Now is the time to share your success with the world to attract new clients and customers. I recently spoke with a business owner in the healthcare space who has $2 million in annual revenue and a healthy profit margin. They are now exploring ways to grow to $4 million in revenue, as most of their clients have been acquired through word of mouth. This is an excellent opportunity to capitalize on the success they have achieved and invest in a comprehensive marketing plan and its execution to reach a broader audience.
Organization
As you continue to grow your business, it is crucial to maintain accurate records of all the paperwork required to operate your business. Online software such as SharePoint, OneDrive, or Google Drive can help you run a paperless organization, where everything is stored virtually in the cloud. Periodically, it is a good idea to review whether additional information technology products can help you secure your business and protect against unnecessary risks. A hosted email, for instance, can be an asset as your business continues to grow.
Advertising
Businesses operating in a competitive market need to do what they can to stand out and explain to customers why they are the best option. For larger organizations, advertising on social media, radio, billboards, and television can be a good option. The most important part of an advertising campaign is the planning process, so ensure you work with an organization that has experience in this area.
Legal
Don’t wait for something to go wrong to call a lawyer. It is better to review contract language and potential risks upfront, before any issues arise that may require even more expensive assistance. Find a good lawyer who can talk you through options such as arbitration in cases of contract disputes, unless you can handle paying for litigation if anyone breaches a contract.
Hiring employees
Think about how many employees it would take to achieve your growth objectives. If you are in a service business, you can sign additional clients to cover the cost of any needed staff to reach those goals. Consider whether there are independent contractors who can help you achieve your goals as an alternative option.
Many businesses don’t reach five (5) years of operating, and even more do not achieve their revenue and sales goals. Often, strategy and execution are the difference.
Working smarter, not harder, can help you achieve your goals more quickly.
Teresa M. Lundy is the principal and founder of TML Communications, an award-winning strategic public relations, crisis communications, and community engagement firm that has served corporations, nonprofit organizations, and government agencies since 2015. Follow Teresa on Twitter @TeresaMLundy.
