Survival of a business
You may have a stable business and you may be content with your earnings. Although you are satisfied today, times do change and you need to think about your business’s future. It is crucial to continuously grow your business yearly because if you do not, your business can eventually fail. As I mentioned in my last post, Getting ahead while you can, you do need to take advantage of the good times while you are living in them. Leverage your positive cash flow to invest back into the business to find the next best thing. Don’t just target 0% changes in sales for the next year. Target 5% to 10% increases in sales for the next year and build out a plan on how you plan on achieving these increases.
The survival of a business depends on growth. There are too many factors going against a business and the only way to defend against the negatives, is build in more positives. In addition to more sales, you want wider customer base, increased technologies, better insights, better strategies, clearer understanding of what your customers are looking for, better service, and so forth. You are looking to stretch yourself out further each year and not buy much. In a span of 1 to 2 years, your growth may seem insignificant, but over 5 to 10 years, your growth is tremendous. There is no excuse for holding your sales flat year over year. There are factors that can hurt you such as poor marketplace, but a clever businessman or woman can always work around this.
Keep in mind that the survival of a business is highly dependent on growth year over year. You want to increase your top line and decrease your bottom line. Much of this seems obvious, but can get lost in the shuffle of the busy work. Lastly, make sure you are working on short term and long term goals. Create strategies to hit your targets and push forward to grow…grow…grow!