Strategic Growth is Best Accomplished Through Knowledge

Strategic Growth is Best Accomplished Through Knowledge

Business owners sometimes enjoy growth as a result of fortunate circumstances. The market suddenly needs a product or service, a lead competitor exits the market unexpectedly, finding a “superstar” for the team and many other situations that may seem “lucky.”

As wonderful as “luck” may be, we know that depending solely on good fortune is foolhardy for our business. However, growth that is profitable and sustainable, or strategic growth, takes careful planning, preparation, and knowledge. Such knowledge appears in four distinct aspects of your business:

Knowledge About the Industry

Business owners must be knowledgeable about their industry in order to grow in the right ways. Keeping a pulse on industry changes-from new methods and materials, to major makers and movements-is critical to “knowing” the how to grow within it. There are many online resources compiled by industry and trade associations updating you on these changes. There are also reports by business leaders that analyze the current state of the industry as well as their insights into where it is headed. Business owners must make it a point to stay apprised of information by reading the analyses, attending industry specific meetings, and networking with their peers.

Knowledge About the Market and the Competition

It’s never good to get blind-sided by a competitor or by fluctuations in market demand. Marketing and Sales are not often the key areas in which business owners involve themselves. Business owners must hire employees that have expertise in Marketing and Sales, as both are integral to strategic growth. These experts can assess the company’s strengths and weaknesses, threats and opportunities (SWOT) and make suggestions for how to remain visible in the market and ahead of the competition.

Knowledge About Operations

Sure, business owners covet business growth, but they should not ignore the company’s ability-or inability-to handle the growth and execute appropriately. Failing to accommodate growth in a sustainable manager can cause great harm to business operations. Consider employee morale a strong barometer of how well the company is managing its growing pains.

Knowledge About Finances

Strategic growth can occur most successfully if the company’s financial foundation is solid. Most business owners acquire this knowledge through information shared by their trusted advisors including their accountants, business lawyers, and CFO. Without data related to the company’s profitability and cash flow, a business owner can make a misstep that can undermine the company’s financial stability and future growth opportunities.

The key take-away is that business owners must surround themselves with an inner circle of resources with solid experience, facts, statistics, and detailed information that can facilitate smart decision making and, ultimately, strategic growth.

Who’s in your inner circle?

Taken from the October 2016 Unique Business Solutions Newsletter

October 14, 2016