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Just like the launch of a business, its growth requires the entrepreneur to take the time and think about all aspects, all angles. It’s necessary to step back and gain perspective in order to be able to face the new challenges brought about by each step of the company’s growth. How does one devise a growth strategy?
First growth stage: Selling
The first objective you'll have to set is the sales target you need to hit to break even (sales – total costs [including your salary]).
Your only concern at the outset is to sell, sell, sell. But keep an eye out so you don't cripple your production and self-financing capacity. Once you've reached your break-even point, take a time out. That's right, take a time out! Through it may seem unthinkable—if not downright impossible—to many entrepreneurs, you need to take time to transition to your second growth stage.
Second growth stage: Structuring
Now is the time to structure your business and get a complete picture of your sales and production cycle. You'll need to focus more on the profit margin on every sale rather than the number of sales you make. Your business owes its existence to sales, but its survival will depend on gross margins.
Once you have a growth strategy in place, you just need to plan and execute it. This involves devising a growth plan the way you would a solid strategic plan.
Want to know more?
Read the full article on Desjardins’ website