Planning and managing business growth for SMEs

Planning and managing your business to grow, is like planting and nurturing a tree to bare fruit. The questions that should first come to your mind are; where should I plant it? What type of tree should I plant? Why do I need a tree? How long would it take to bear fruit?

 What type of tree? It could be an orange tree, or an apple tree or a cherry blossom tree or a great oak, or a date palm or a banana tree or just about any tree. An orange would need a hot Mediterranean climate to bare fruit. A great oak would need a large ground area. You need the right climate to grow apple. A date palm would not produce dates in the tropics.

 Considering these factors, you decide to plant an acorn because what your need may be a feature in your garden landscape. However in practice, most trees get planted as a result of an opportunity of being given a plant, or being attracted to buy on impulse or for the need to harvest for consumption.

 In a similar way, most businesses get started as a result of an opportunity of a market or availability of knowledge or a skill. So let us start at the stage of having a business opportunity where you would need to decide on the type of business you want it to be.

 If a business is to grow successfully, it should have a system in place independent of the person who gave birth to it. In order to have a successful business, an entrepreneur needs to first identify and plan the type of business they need. Is it a small business that would grow in time, a business that would remain small or a large organization? Is it a business that would bring returns in the short term or long term?

Now what do we mean by growth? In a business or organizational senses it could be considered in terms of the acronym “GROWTH” which stands for;

Generating value

Relationship with partners

Originating new Ideas and extending markets

Working for an enhanced purpose

Treasure innovation and commitment

Harnessing new skills

The main constraints in expanding a successful small business are a lack of:

strategic planning

management resources and systems

finance

When an organization stops generating value, it stops growing. Looking at it in a customer perspective and ask the question “What is the value of the service I offer? What competitive advantage do I have? Information, customers, skills, markets and partnership, all add to corporate value. You should generate, maintain and safeguard these values.

 Partnerships can make or break organizations. One good partnership can change the whole business landscape. The success of your business depends on the success of your partners. Ensure that your business dealings will help your partners also to grow. Make your partners dependent on your success.

The future is never what it used to be. Markets change. Competitors change. Political, economic, social and technological changes have acquired a new momentum. Evolve and change with the market or perish.

 Why are you in business? The answer should be “for the common good of society”. If you are to remain in business and maintain leadership, it must be to serve your community or humanity. In order for your business to grow, each and every employee should believe in serving with an enhanced purpose. Clear, consistent communication is vital.

 To build trust among employees and customers, your every action should strive towards encouraging and treasuring innovation, commitment in everything you do.

What is corporate success and growth? Is it a measure of profit, number of employees or product or service range? Enhance, upgrade and acquire new skills with the objective of innovation for true corporate success and growth.

 Let us consider some examples of the type of business you maybe in.

A retail shop – a franchise – a chain store or a service outlet.

2. Garment manufacture – subcontracting –raw material sourcing- exporting agent

3. Farming – dairy produce– small scale for local distribution- large scale orchard

4. Distribution-limited range transport- local – regional- marketing and distribution

5. Office services-printing services – office supplies – skills training and employment

 If your business is in retail, remember that customer loyalty is everything. Offer a friendly service with a personal touch and value for money to keep them. Remain loyal to your customers. Train all your employees to make a personal commitment to your customers. If you are thinking of growing your retail business into carrying a larger range or to more outlets, establish a system that could be put in place.

 Availability of skilled labour, design skills, markets, raw material supplies and investment are pre-requisites for success in garment manufacture. The growth of your business will depend largely on your management efficiency, productivity and market. Establish good partnerships and deliver quality. Your success will depend on your buyers’ success.

 Growth does not mean continuously increasing or expansion in size. For any type of business, there is an optimal size, in terms of number of employees or turnover for example, depending on the type of business.

Therefore, continuous growth could be considered in terms of value. Obesity, even in business is never a healthy sign.