When you start a new business, you begin with a plan that you hope will lead to profitability. You may try to create an explosion of interest leading to a large customer base at the start. You may plan for slow and steady growth over time. However, your business is not a computer simulation happening under ideal conditions. The real world is unpredictable, and you may quickly discover that there are important aspects that you left out of your original plan.
Leaving Enough Room for Growth
Many new businesses fail because they underestimate the costs and challenges of growth. At the beginning of your business, the overhead costs may have been quite low. You may have been able to use your home as an office, and you may have been the only employee. As your business expands, costs will increase. New employees can ease some of the strain of expansion, but they also require salaries and benefits. Higher demand means the need to increase production rates or risk losing customers.
In many businesses, if you want to be taken seriously, you need to have a formal workplace to call your own. Everyone wants their business to grow, but growth itself is stressful. Working with a financial professional can help you plan for your desired growth. An expert can assist you in seeing how much of your profits should be reserved for future expansion. You also need to consider the needs of your physical plant. Moving is expensive, so you do not want to lose money by making multiple moves in a short time. Consider your plans for the next five to ten years. You want to be certain that you have the space you require for new product lines, new employee departments, and product warehousing.
Allow for Mistakes
Running any business is a learning process. You and your employees are bound to make some mistakes along the way. These mistakes can be small like a delayed order. They can also be large like a product line that fails to meet market expectations. In business as in much of life, mistakes are growing pains and learning opportunities. However, your company must be ready to deal with the consequences of mistakes. With wise planning, a mistake does not have to be a significant blow to your business. Consider ahead of time how you will deal with potential errors. If you miss a client deadline, think about how you will make it up to the client and keep the relationship intact. If there is an error in communication, consider how you will handle it and make it right.
For more serious mistakes and accidents, you need to be sure that your company has the proper insurance coverage. This is an area that is often neglected in the early life of a business because owners are trying to save money. However, if someone is injured on your premises, you need to be covered. Mistakenly hiring a problematic employee can leave your business vulnerable. Planning for the unexpected needs to be part of your business model.
Cultivating Employee Loyalty
You are excited about your company and hope your employees feel the same way. However, if you do not invest in your employees, you may find that you are constantly in hiring mode. In a competitive market, many businesses are expanding their benefits packages to attract and keep the best people. Employees pay attention to how they are treated by their companies. If you want to attract younger employees, you need to think about family care and flexible scheduling. Many employees are looking for health packages that look at overall wellness by including benefits like gym memberships.
You also want to think about workplace culture. High-stress environments do not inspire loyalty. Some businesses encourage employees to build time for creativity and education every day. Simple amenities like coffee and snacks can be a positive boost for morale. Most employees want to be productive, but they also want to enjoy their work.
IT Set-Up
Technology is another place where businesses need to plan for investment and growth. Both hardware and software improve every year. A leader today needs to think about how often the business needs to update computers and networks. You also want to keep tabs on what is happening around software in your field. Many simply rely on their IT services team for updates without looking into whether they’re using the best software. While it can be easier to work the same program every year, it is becoming more common that companies are releasing software specific to particular business types. An auto mechanic can use a general accounting program, but one that is designed specifically for garages will have features that will make it more helpful.
Many expanding businesses also have to consider how much tech support they need. Hiring an IT department is a heavy expense. Smaller businesses can consider partnering with a local IT business to provide for their technology needs. As you grow, you will eventually need employees that are dedicated to your IT systems alone, but using third-party contractors can help you as you expand.
Online Presence
Your online presence requires some intentional thinking. Most potential customers will look for you online before they contact you. You want to have a well-designed website that shares basic information and is easy to use. If your site does not exist or is not user-friendly, people will move to the next result on their search engines.
Your reputation on social media can also make or break your company. For example, 94% of potential patients will research reviews on a doctor before choosing one, which makes an online impression a make or break. Some businesses hire an employee who only works with social media accounts. You want to be certain that your business comes across as responsive and professional. Remember that inappropriate or angry posts can live on the internet forever.
There are a lot of things you can control when it comes to running a business, but no one is perfect and it’s likely you’re going to neglect at least one important part. In fact, a lack of planning is a common cause of business failure. Although you may be excited about the start of your endeavor, it is always important to take the time to look ahead. By developing a comprehensive business plan, you are paving the way for success in the future.
Ready to start your business or looking to grow as a small business owner? Join my 15-week training program!