Five strategies to help your business grow
With the UK economy continuing to increase faster than anticipated following the sixth consecutive quarter of above-average growth, chances are that further interest rate rises will follow in an attempt to rein in inflation.
For businesses, this outcome is something of a double-edged sword - low inflation keeps costs down, but the process of achieving this by increasing interest rates means that business borrowers are hit.
But Simon Cowie, Head of the Corporate Finance and Business Advisory Team at Hall Morrice Chartered Accountants, believes that business success is often achieved thanks to the individual actions of companies, rather than due to the nature of the market.
"A strong or weak economy is simply a general trend across the nation - it doesn't necessarily mean that all businesses growth follows these patterns. How your company develops is just as much dependent on internal influences as it is on external forces," says Simon.
"In business, it's easy to become too comfortable. There is a reassuring sense of familiarity in doing things the way you have always done them, but this is not always the best approach to take. Although you shouldn't change things purely for the sake of change, you don't need to be resistant to it. Variation and adaptation are an essential part of a thriving business."
Simon has these five tips to avoid organisational complacency:
Embrace New Technology
Naturally this will require an investment in order to be implemented effectively, in terms of both time and money, but it can often make the business more efficient in the medium-to long-term.
It is important however that you ensure that the burden of work is not just passed on elsewhere within the organisation. Make sure you choose the right solution for your needs.
Look for New Blood
New employees are essential to ensure that the business continues to thrive, because additional staff members bring with them different perspectives, techniques and approaches to doing business. Don't look for people that are just going to be happy to keep their head down and always go with the flow - look for
employees with the potential to contribute instead.
Combine your Strength
A merger or acquisition is also a great way to boost the prospects of the business. Merging with or taking over an organisation that you feel can add value to your business is a great way to drive the company forward, because you also acquire knowledge along with the more tangible assets. You could target a competitor to increase your market share and consolidate your positions or pursue a company with a markedly different product or service which will add to the company's portfolio.
Explore New Avenues
Diversification can often be crucial to the future success of an enterprise, especially once you have developed both your product and its market to their limits. This can take three distinct forms - Introducing a product or
service which complements your existing offering but will appeal to new markets; something new which may appeal to your current customer base; or one designed specifically for an entirely new market."
Be Brave
All too often in business, it's far too easy to forget how to be brave and take chances, but that's exactly what can make the difference between standing still and moving forward.
If you were involved at the very inception of the business, remember how bold you were then. Starting up is a daunting step to take, yet once that has been accomplished that entrepreneurial attitude can often be quickly forgotten. Don't ever lose sight of that spirit, because that is what could make the difference between a company which is going places, and one which is going nowhere.
Although you may be looking at bringing new people, ideas and even organisations into the business, it's vital to remember that taking responsibility for the development of the company comes from within.
About the Author
Hall Morrice, founded in 1976, is one of the Scotland's leading independent firms of chartered accountants and has offices in both Aberdeen and Fraserburgh. Hall Morrice is based at 7 Queen's Terrace in Aberdeen and can be contacted on01224 647394 or at accounts@hall-morrice.co.uk.
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