Business Growth
Business growth occurs when the company successfully markets and sells products and/or services, at a price that exceeds the cost to produce, with enough surplus profits to cover overhead and allow for reinvestment.
Companies are dynamic organizations comprised of numerous functions and disciplines. Infrastructure refers to the organizational layout, its underlying processes and internal communications. Departments such as finance, marketing, sales and human resource exist in a corporation whereas in a small company such disciplines are broadly defined.
A weakness in one discipline can hinder the growth of the entire company. If sales or marketing are lacking, the company cannot reach revenue targets. If the company lacks financial acumen, profitability will suffer and cash flow may not be available for investment. If leadership is insufficient, the company will operate without strategic direction.
For this reason, small companies need to make sure they have employees with experience and expertise within the main functions. If needed, fill in gaps by using contract labor. When all business functions are being addressed properly, a company can achieve what appears to be overnight success.
Implementing solid company processes and procedures is the first step to growing a company to the next level. An aggressive sales push without the corresponding infrastructure development can lead to quality issues and missed deadlines. This could cause more harm than good as it is much harder to fix a bad reputation.
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Categories: Growth Strategies
Tags: business growth business simply put lori williams marketing finance small business
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