4 Factors that Promotes your Business Growth
There’s a lot to think about when growing your company. From hiring to new clients to insurance, it’s easy to get overwhelmed. But that’s why it’s important not to let seemingly little things fall through the cracks.
Here are the four key areas that are recommend any business owner to pay particular attention to when looking to grow their business.
To make the business growth factors easier to understand, they are divided into two groups – leadership and management. Let’s take a closer look at what really influences the growth of your business.
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4 Factors that Promotes your Business Growth
1. Behavioral and Personal Traits
A business leader’s characteristics such as behavior, personality and attitude can certainly have an impact of the growth of the business.
Furthermore, their capabilities, including education and training create higher expectations in some industry sectors, whilst their social capital influences access to resources.
Management experience, family history, functional skills and relevant business sector knowledge are also ingredients that will influence the recipe for success.
2. Business Structure and Management
How the business is structured, its goals and the performance of its management team, in particular their ability to make rational decisions about its operation, will highly impact the successful development of the business.
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3. External Factors
Whilst the above two considerations can be managed to an extent, external factors over which we have virtually no control are also going to have an effect on the business’ growth.
Such factors are the cultural, political and economic conditions of the country or region in which the company operates.
The triggers for enterprise growth are found along a continuum from the attributes possessed by individuals to complex interrelationships among often changing cultural, political and economic conditions at national, regional and local levels.
4. Location
Variation in size, scope and buoyancy of demand in local markets is likely to affect growth opportunities. On the supply side, variation in the cost and availability of labor, premises and services are also influential.
Nevertheless, owner-managed businesses are often adaptable, employing different strategies to deal with these local variables so that their impact is minimized. Just having a growth orientation does not guarantee growth.
A business set up to exploit an identified market opportunity would be expected to have stronger growth orientation than one set up as a result of ‘push’ factors such as a lack of alternative opportunities. In a nutshell, it is important to identify the factors most relevant to the business and then exploit them to expand and grow the enterprise.
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4 Leadership Business Growth Factors
The leadership factors focus on the people at the top. In a small business that the owner(s). So, we often find business being held back from growth by the owner and not the potential of the business itself.
I wrote posts in the past on the topic of self-knowledge and humility as critical to business growth. This is why these are important topics. The owner’s state of mind and skills enormously impacts a business’ ability to grow.
As a result, many of my coaching and consulting engagement become one of psychotherapy as we try to help the owner get past his/her mental obstacles.
Let’s review the 4 leadership factors:
Owner Goals — how the owner has decided to use the business as an asset that supports their personal dream.
Operational Skills — how well the owner understands what the business does to generate revenue.
Managerial Abilities — how well the owner understands how to direct the management growth factors towards achieving his/her own goals for the business.
Strategic Thinking — how well the owner understands outside influences and applies the management growth factors to react to opportunities and threats to maximize return on the investment.
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