POTENTIAL BUSINESS GROWTH INDICATORS

BUSINESS GROWTH POTENTIAL AND RELEVANCE

Growth in any business venture is synonymous with expansion and increased bottom-line. Many businesses have either crumbled or unable to grow due to several factors i.e. internal or external factors, government or company policies etc.

Potential for growth serves as the live-wire of the company and ensures that the company is a going concern.

At the conceptualisation  stage of a business entity, the promoter(s) should have made ample provision for unforeseen circumstances so that in the event of loss or disaster, the business does not go under.

Likewise,there should be adequate preparation for an expansion and growth when the need arises.A shrewd businessman should identify opportunities to grow when he sees one and taking advantage of it can only be termed wise and not only a business risk .

However, there are factors to be considered for a business to experience growth potential. Some of which are:

Reduction in operational cost

Keeping operational cost to the bare minimum helps the business to grow, save cost. As much as possible, a medium or small scale business should operate within its familiar location and comfort zone pending when there would be the need for expansion which should be gradual.

The cheapest, most affordable and reliable phone services (Cloud phone services most preferably) should be considered because, phone/internet services tend to take a lion share of the company’s cost and if not well managed could affect the business.

As a Matter of fact, the use of the simple cloud phone services will also help to reduce the task and workload of the IT staff, who can then channel their time and energy towards something more productive

One needs to call the customers occasionally to seek feedbacks, areas of improvement and shortfalls to help determine if the business is doing well or not. Imagine having to call over 1,000 regular customers monthly. It does not come cheap

Quality of goods and services

One must not compromise its products and services. What you sell to the customer will determine if the customer would return or not. The quality of delivered goods and services will yield a good turnover and increase profit over time

Delighting the customer

Satisfying a customer could turn into marketing tool for the business. A delighted customer would introduce between 5-0 other customers to the company and in turn they also introduce other customers and so on.

IDENTIFYING GROWTH POTENTIALS

Large customer base-demand surpasses supply

A large customer base more than what a business can carter for is a sign that the business has grown and needs to expand. Evidently, the business is doing well and thus has enjoyed massive patronage. 

The company must at all times strive to meet demand so as not to have disgruntled customers.A businessman should be able to decipher that demand surpassing supply is not one off.

Exceeding budget and projections

Another indication of potential for growth in a business is the ability to meet set goals and targets set at the beginning of the financial year even well before the end of the financial year.

This is an indication that more customers are buying into the company’s products, ideas, services or goods and opening new outlets, or branches or centers would be a welcome development.