To successfully grow your business, you need to not only know your current business position but also where you want to be in three or five years’ time.
Short-term, medium-term, and long-term plans will help to achieve your goals.
How do I grow my SME?
There are lots of ways you can grow your business, but you likely need to put money into your business to get to your endpoint.
Although tricky to navigate, you need to figure out where your business stands and identify how you achieve your business’s future goals.
To identify your business’s current position, you need to look at its performance in depth, which can be achieved by using analytical tools such as SWOT, PESTLE analysis, and NOISE analysis.
Some benefits of using these tools are:
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Improved insight into your data – this information means you can make successful decisions about where to put your resources, improve your processes and understand which strategies to use to improve business outcomes
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Increased efficiency and productivity – analysis streamlines your work processes (using the collected data) and can discard areas of issues, whilst increasing areas that lack productivity
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Competitive advantage – the analysed data can help you to make informed decisions which will further your advantage as a competitor. Utilising the data can give you a competitive edge and can help you to anticipate clients’ needs
Cash flow forecasting
Cash flow forecasting will give you a basis of your business’s expected cash flow over a specific time, helping you to plan and respond to changes.
If you choose a short-term cash flow forecast, it might cover the next thirty days and can be used to identify any funding needs or excess cash in the immediate term.
By planning your cash surpluses more effectively, you can also execute a growth strategy more predictably.
The main purpose of a cash flow forecast is to assist with liquidity; it is a challenging and complex system, but our guidance can simplify the process.
There are lots of benefits for using a cash flow forecast:
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It ensures projected cash flows are starting from the actual cash flow position
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The cash flow data reveals patterns in cash fluctuation which can be used to predict your future cash flows
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The data helps you as a business to avoid shortfalls and negative cash flows; if you are short on cash, you can use this forecast to figure out how to get cash before it is too late
Investment
Investments can give your business more funds to grow and allow you to collaborate with partners and expand your network, resulting in an increased support system.
An injection of money can be the difference between long-term growth and short-term success.
Some advantages of investing as an SME include:
Access to funding and grants
You’ll need to prepare the relevant financial reports and business plans that will appeal to investors and lenders; this will give you the capital to grow.
If you can’t secure a grant or fund, you might need to move your company into debt.
This might seem high-risk, but it might be the way for your business to grow.
Here are some ways to organise your debts:
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Long-term business loans – just like a long-term plan, these loans allow you to make repayments manageable whilst getting you to achieve your goals more efficiently and makes sure you can repay the amount in full
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Asset financing – a short-term solution; although risky, this means you can use the assets of your business as security for borrowing monies.
I still need advice, what do I do?
Whilst the process of growing your business can be problematic to manage, it is important you understand its principles, especially those centred around finance.
Having a solid knowledge of these principles will help you to make informed decisions for your SME.
We have curated tips to build a good foundation but the best way to grow your SME is to seek the help and guidance of a trusted professional.
If you are struggling to grow your business and want advice, contact us today.