In an increasingly competitive market, a focus on growth is the only way for small and medium-sized enterprises (SMEs) to survive and succeed in the long term.
However, growing companies with limited resources face a number of challenges.
As you expand your team, acquire new assets, or invest in better tools and systems, it can be difficult to maintain profitability, motivate your employees, and support customers effectively.
WeWork's 2019 crash is one of the best examples of how an aggressive growth strategy can backfire. The company, once valued at $47 billion, hired too many people too quickly and ran into extreme cash flow problems, forcing it to lay off more than 3,000 employees. In contrast, Tesla is an excellent example of a company that not only grew over the past decade, but was able to remain profitable cambodia telegram mobile phone number list while doing so.
In this article, we will give you some tips for managing your business growth and the challenges that most expanding businesses face.
Tip 1: Clearly define your growth strategy
If you want your business to grow sustainably, you need to follow a well-thought-out strategy. A growth strategy for SMEs is the roadmap that can help your business achieve its goals and operate profitably in the long term.
It takes into account your current business model, infrastructure and resources so that you can identify meaningful goals for sustainable growth. To do this, you need to conduct a so-called SWOT analysis of your company's strengths, weaknesses, opportunities and threats and align your growth plans with your marketing strategy. In addition to financial management, some other tools will also help you predict what resources you will need to achieve your profitability and growth goals.