For businesses the new financial year is a great time to evaluate the previous years performance, and to look forward to the future.
It’s also the best time to plan for the growth of your business.
Planning isn’t really hard, same goes for its implementation.
The difficult thing is to stay consistent with it.
But before we talk about different strategies to double your business, it’s important to know what it actually means to double the size of your company.
Is it about doubling the office space?
The number of employees?
Most of us would answer revenue, so for the sake of this post, we will talk about annual revenue and establishing a cost structure that will allow businesses to double their profits.
Fix Your Financial Statements
There is no way you can sustainably double the size of your company if your financial statement is a mess.
This is why it’s extremely important to have a really strong accounting system that can pull up reports for key metrics and trust that your cash cycle is well protected.
This also means that your books must be tight enough, customers are invoiced on time with little to no problems in your collection, and bills are paid with the right cash injections.
Financial reports (and cash!)are the heartbeat of your company.
It must be well-laid out that you can easily see profitability and margin at a glance, including cash balances, etc.
Commit Only 10%
Before we dig deeper, we need to understand that doubling the size of your company is NEVER a good idea if you’re not actually making money in the end.
The profit and bank balance must reflect the growth.
If you implement growth strategies and you’re actually not making money, then why go through the hassle of going bigger?
It’s important for you to learn how to run your business on 90% of your cash.
Meaning, the remaining 10% must be stashed for wealth, building, taxes, and to prepare for rainy days.
Have a Real Marketing Budget
Now that you have your financial statement intact, and you’re running 10% cash, your next move is to look at the marketing budget.
You would be surprised how few companies actually do marketing. Common reasons for this include:
- They don’t really understand marketing
- They tried marketing once and it failed, which cost them a large amount of money
- They think it won’t work for their business
- They don’t know how to market online
This list can go on and on.
Put it simply, if you’re not marketing, then you are NOT growing.
Sure you can get by with some word-of-mouth growth, or even attract some people on a walk-ins basis, but if you’re looking to grow your business and increase your sales volume, then you should let people know about you.
Your goal is to add some fuel to the fire…
And here’s the good part – you don’t actually have to know how to do it.
There are countless marketing firms and experts out there waiting for you, and would be glad to lend a helping hand.
As a business owner, your job is to find them.
The idea is to grow bigger each year, and ideally marketing should take up about 6% to 8% of your revenue.
This means if you’re earning $100,000 a month, then you should be spending around $6,000 to $8,000 a month for your marketing campaign.
This may seem like a lot of money, but if done right, this will leave your competitors in the dust.