All businesses go through the four stages of the business cycle: contraction, trough, expansion, and peak. These stages recur throughout the life of a business from the startup stage to the resource maturity stage. Growth and expansion are the trickiest stages of the business cycle because they come at a huge cost. We have seen many businesses grow rapidly only to sink after a short while. Here are a few tips and tricks to hack your business growth and sustain it to the maturity stage.
Come up with the right mix of debt and equity
Growth requires finances. For you to realize the growth that you are targeting, you should choose the cheapest form of financing at your disposal. Remember that in business, one way of facilitating growth is reducing the costs of production. Debt is readily available, but it is more expensive than equity.
Raising funds through equity may also be a challenge especially when the business risk is still high. Therefore, depending on the circumstances, you should come up with the right mix of these two forms of financing to ensure that your business can comfortably finance its growth plans.
Embrace the latest technology in your business
Do not expect to grow if you are still using outdated technology in your business. Today, technology is the heartbeat of every business. We all know how essential technology is to every type of business. Furthermore, customers will always prefer the trendiest and the latest technologies to the old technology. Therefore, change with the changing times as far as technology is concerned if you envision growth and prosperity in your business.
Embrace creativity and innovation in your business
One sure way of getting head and shoulders above your competitors is doing things differently. As a rule, in business, whenever you do something that no one else does, your boat floats on the sea as others start sinking. Therefore, break all the rules of dogma and come up with something new that solves a significant problem. This way, you will not struggle to grow to the next level. You will just find yourself there.
Adopt a direct sales approach
Instead of having several middlemen who make the price of your goods high to the end consumer, sell your goods directly to your customers. There are several ways of doing that, and you can choose the most convenient and for your type of business.
All business are faced with several risks. Some risks are so catastrophic that they can lead to the closure of your business if you are not careful. One way of reducing the impact of these risks is diversifying your products and procedures. If one fails, the other one works, and you remain on the right track.
Aim at making your customer happy
Most businesses do not get it right when it comes to meeting the needs of the stakeholders. To most businesses, the shareholder is the king. While it is okay for the business to concern itself with creating wealth for the shareholder, that is only possible if the customer is happy. Therefore, if you want to fast-track your business growth, let your customers be king.