To reach this stage your business has shown that it is a workable and a needed business in its own right. It will have sufficient customers or service users that provide it with enough income to function and stay in the marketplace. The main issues the business will now face are:
Can it break even and generate enough turnover to cover repair or replacement of capital assets as they wear out?
Can it generate sufficient cash flow for it to remain in the industry, finance growth and begin to show profit as a return on the stock, assets and manpower invested?
Is there anything that is holding your business back from expansion?
During the growth stage is when you need to work ON your business, not just IN it. Perhaps the business model or the sales model needs tweaking, maybe you need to adjust staffing or stock levels. The challenges you will face are coping with increasing numbers of customers and revenue, constantly adjusting management structures and effective and accurate reporting on operations, stock, sales and very importantly expenses. Discussing the future with us your Accountant helps you to put together a Roadmap for where your business is headed and how it is going to get there. Staff can then be told the methods needed to improve productivity and increase profits which ensures the success and longevity of the business and the security of their positions.
Entrepreneurs start businesses for many different reasons but to make it work it takes well thought-out systems and proper management. The Growth Stage is the most important stage in a business and takes careful handling, talking through decisions with us your trusted advisors before you make them often reaps greater benefits in the long run; for example knowing when you need to set up appropriate shareholder agreements, how to avoid disputes and how to manage remunerations options resulting in paying the correct amount of tax.
Strategic planning is time well spent on a business – it ensures that you expand in the right directions at the right speed with the best possible outcomes.
Click on Stage 3 to see more about how a business Matures