Every entrepreneur dreams of growing their small business into an empire, seen as doing so will help secure the future of your company, not to mention increase its profits.
However, as a small business owner, you will appreciate the idea of supersizing your business is easier said than done. After all, expanding your business is all about building on your existing success, which requires careful thought and planning to achieve.
Here’s some food for thought where your small business is concerned, to help your business to reach new heights.
Small Business Stats
- 5.8 million small businesses exist in the UK alone
- Small businesses have fewer than 50 employees
- 13,157,000 people are employed by a small business
- Small businesses created £1.5 trillion worth of revenue in 2019
- London has the most small businesses anywhere in the UK
How To Grow Your Small Business
At the core of growing any business is identifying where you are now versus what where you want to be, and if there are any stumbling blocks that are preventing you from making the leap.
For some businesses, they are going to need to raise capital either through increasing their prices or by taking out a business loan. For others, they may need advice from a business coach or financial advisor to realise their potential.
Below are some of the main steps you’ll need to take to make your expansion dreams a reality.
Get Clear On Your Current Status
Don’t be that trembling business owner who appears on Dragon’s Den unable to answer basic questions about their turnover - even if you’re simply pitching ideas to yourself in your living room!
Instead, if you are to upsize your brand, then you’re going to need to know every intrinsic detail about the status of your business. Not only will investors, your bank and any other interested parties need to be privy to such information, but as a company owner, you need to avoid any unnecessary financial risk to your business within the decisions you make as you look to expand.
Hire More Employees
The next step up from a small business is a medium sized business, which is defined as having between 51 and 250 employees, with a turnover of between £7,000,000 and £36,000,000. Such figures are quite a jump from the typical small business but are certainly achievable with the right strategy.
Firstly, when it comes to hiring additional employees, you need to figure out what job roles you require, how the positions will be initially financed, and how much profit each employee will bring into the business.
As an example, if you hire a salesperson with a salary of £30,000 a year, their sales targets may be £100,000 a year, which would give a £70,000 profit before taxes, expenses and employer contributions have been deducted. The exact figures will of course differ depending on your business and the type of labour you hire, but the results should always equal more profit rather than expenditure.
Refine Your Niche
Everything hinges on how to bring more value into your business, not just with your new employees but with your product offerings as a whole. If you haven’t sat down with a financial advisor recently, they can draw up a cash flow forecast to help you plan ahead, and understand which areas of your business are most profitable.
Instead of trying to be all things to all people, try to focus on perfecting what you’re good at. Leading with your strengths is the best way to not only win new business but ensure customer satisfaction in the process. If you excel at what you do, not only will the word spread about your business, but your customers will remain loyal which will offer the perfect climate for growth.
It’s impossible to grow your business if any element within it is currently holding you back. From a location that’s not fit for purpose, to costly expenditure that’s sinking your profits - you need to identify your weaknesses and remedy the problem to become stronger.
Every company has a different way of managing its employees. However, it’s essential that your team not only work cohesively together but individually are genuinely bringing value to your business. So don’t sweep any issues within your team under the carpet, instead you need to set an example and lead from the front.
How NimbleFins Can Support Your Business
As your business grows, it’s essential you take out the relevant cover to protect your assets, employees, clients and the general public. Otherwise, legal action against your business could cause financial ruin.
NimbleFins helps business owners compare quotes for all their business insurance needs. From Public Liability Insurance to Professional Indemnity Insurance - we’ll make sure your business gets the right level of cover for a competitive price.
We’ve also provided you with free guides to help understand what insurance your business needs so that you’ll never experience any unexpected surprises that could threaten your company. With your business insurance sorted, you’ll be well on the way to growing that empire of yours regardless of what tomorrow may bring.
To Sum Up
While there’s no shortcut to being an overnight success in business, the above tips will definitely point you in the right direction. Ultimately, growing your business relies on you expanding your current efforts to a broader market, choosing the right products, services and team members that are going to make your brand appeal to the masses.
Start today by drawing up an action plan that will outline your targets, along with steps you can take to achieve them. Remain focused on your goals, and have regular check-ins with your team to ensure you’re on track. All the while, stay true to your company values so that you retain the magic of what brought you customers in the first place.