Small businesses are the backbone of America’s economy. According to the U.S. Small Business Administration, the nation’s 23 million small businesses account for 54 percent of all U.S. sales and 64 percent of all net new jobs. Some successful small businesses, however, make the leap and become big businesses.
Just because a business starts small doesn’t mean it has to stay small, say the experts at the Pennsylvania Institute of Certified Public Accountants. Opportunities for growth await small business owners who are ready to take their company to the next level. Planning and preparation are keys to growing your business.
Prepping for Growth
If you expect to grow, you need a roadmap to get there. Here are a few items for the top of your “to do” list:
•Know where you’re going.
What is your mission? That should always be your guiding light.
•Have a solid infrastructure.
If you’ve got a shaky foundation, growth is going to be painful instead of enjoyable. Make sure you have the proper systems in place, such as financial, production, logistics, and back office.
•Hire the right team.
Not everyone will want to grow with the company, and not everyone should. Make sure you have a dedicated group in place to help reach your goals.
•Remember, your customers are always your top priority.
As changes occur, what are your customers saying? What feedback can they offer? Whether you speak with customers directly or conduct a survey, know what’s on their minds.
•Don’t forget about the details.
Don’t lose touch with the details that make your business work.
There are many options for growing a small business. Find the right solution for you.
If your existing location is doing well, consider expanding and opening another outlet. You can own and operate it yourself, or you can franchise, offering the opportunity to someone else.
Does someone else have a similar product offering or idea? Consider working together to expand while sharing the risk.
Add complementary products. If you are a seasonal business, what can you offer in the off-season to grow your business and even out the seasonality?
•Find new markets.
How can your product appeal to a new group of consumers?
Is someone selling something similar or providing a service that would complement your existing products or services? Consider growth by acquisition. You might also acquire some great employees in the process.
• Get online.
You may already have a small website with basic company information, but think of the number of new customers you could reach by turning your website into an online store.
The international market isn’t the private playground of big business. In our wired world anyone can sell internationally. While there will be some preparation work, you can crack the international market and expand your horizons.
Financing Your Big Ideas
Now that you’ve got your goals in place, it’s time to talk money. Your first step should be checking out the U.S. Small Business Administration’s website (www.sba.gov). The SBA has a number of financial programs that address the needs of small businesses. While the SBA itself does not make loans, it does guarantee loans made to small businesses by private and other institutions, encouraging the lenders to qualify more applicants for loan approval.