Owner-managers wear many hats – from CEO to chief salesperson, HR manager to sales representative to bookkeeper.
Finding time and energy to focus on growth can feel like an uphill battle amidst the day-to-day challenges of running a business.
However, with the right strategies, you can still grow your business while handling daily responsibilities. This guide explores practical, achievable ways to expand your business, including using technology and tapping into new markets.
Before we move on, it’s important to remember that growth looks different for every business. What works for a tech startup might not be the best approach for a family-run bakery.
The key is identifying strategies that align with your unique goals, resources, and market position.
With that in mind, let’s explore some proven growth strategies for owner-managed businesses:
Master your cash flow
Some 82% of SMBs fail due to cash flow-related issues, and 1 in 7 have struggled to pay employees due to cash bottlenecks.
Cash flow defines the inflow and outflow of money that keeps your operations running smoothly. Despite being so fundamental, it’s often overlooked among other tasks.
On the upside, mastering your cash flow can be a springboard for growth. Here are some strategies to help you manage your cash flow effectively:
- Invoice promptly and consistently: Set up a system to ensure that invoices are sent out as soon as work is completed. Consider using automated invoicing software to streamline the process.
- Offer multiple payment options: Make paying you easy for your customers. Accept various payment methods like credit cards, bank transfers, and online payment platforms. The more convenient it is for your customers to pay, the faster you’ll receive your money.
- Negotiate favourable terms with suppliers: Don’t be afraid to negotiate payment terms with your suppliers. See if you can extend your payment deadlines or secure discounts for early payment. Every extra day you have to pay can help ease your cash flow.
In the end, a healthy cash flow doesn’t just keep your business rolling day-to-day and week-to-week – it gives you the flexibility to invest in growth when the time is right.
Choose smart technology
Second, let’s talk about technology. Many affordable, user-friendly solutions are available that can help you streamline your operations, reach new customers, and drive growth.
Here are three key areas where technology can have a dramatic impact:
1. Email marketing
Email marketing is one of the most effective ways to keep in touch with your customers and promote your products or services. With email, you can:
- Send personalised messages to your subscribers
- Announce new products, services, or promotions
- Share valuable content, such as blog posts or industry news
- Gather feedback through surveys or polls
To start with email marketing, you must choose an email service provider (ESP). Many affordable options, such as Mailchimp, Constant Contact, or AWeber, are available.
These platforms offer user-friendly templates, automation tools, and analytics to help you create and track your campaigns.
2. Cloud-based accounting
Managing your finances is central to running a successful business. Traditional accounting software has been rapidly replaced by a new era of digital, cloud-based accounting tools.
With a cloud accounting platform, you can:
- Access your financial data from anywhere, on any device
- Automate tasks like invoicing, expense tracking, and bank reconciliation
- Collaborate with your accountant or bookkeeper in real-time
- Generate financial reports with just a few clicks
Some popular cloud accounting options for small businesses include Xero, QuickBooks Online, and FreshBooks.
These platforms are closely matched, offering affordable subscription plans and integrating with various other business tools, such as payment processors and CRM systems.
3. Customer Relationship Management (CRM)
As your business grows, tracking customer interactions often becomes tricky. That’s where a Customer Relationship Management (CRM) system like HubSpot or Zoho can help.
A CRM allows you to:
- Store and manage customer contact information
- Track sales leads and opportunities
- Record customer interactions, such as emails, phone calls, or meetings
- Analyse customer data to identify trends and insights
Most CRMs offer free trials or cheap starter plans to learn the ropes. If you have established customer records in other systems, copying them across with in-built integration tools is often simple.
Focus on your existing customers
While attracting new customers is important, don’t overlook the potential in your existing customer base. It’s often said that keeping an existing customer is cheaper than acquiring a new one, and there’s truth in that.
Here are some strategies to maximise value from your current customers:
- Upselling and cross-selling: Identify complementary products or services your customers might need.
- Loyalty programmes: Reward repeat business to encourage customer retention.
- Feedback loops: Regularly ask for customer feedback and act on it. This can lead to product improvements and new ideas.
- Referral programmes: Turn your satisfied customers into advocates for your business.
Explore new markets
If you’ve hit a ceiling in your current market, it might be time to look further afield.
This doesn’t necessarily mean international expansion (though that could be an option). You might find untapped potential in different regions of the UK or adjacent market sectors.
When expanding, start small at first. Consider a pilot project or a soft launch before committing fully.
Supporting your growth journey
If you’re wondering “how to grow my business, ” we at Venthams acknowledge that growing an owner-managed business is no small feat.
It requires careful planning, strategic decision-making, and, often, a good dose of courage. But with the right approach, it’s entirely achievable.
The Venthams team has helped numerous owner-managed businesses break through growth challenges.
Whether you need help with financial planning, technology implementation, or strategic advice, we’re here to support you on your growth journey.
Why not contact us to discuss your business goals? Together, we can develop a growth strategy tailored to your aspirations.