Scaling Up: 4 Crucial Decisions to Drive Business Growth
Posted on 9th May 2023 at 09:33
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Scaling-up Your Business With These Four Crucial Decisions To Drive Business Growth
Did you know one of our Co-Founding Directors Leon McQuade recently became an Entrepreneur in Residence at the University of Hull?
The University of Hull's Entrepreneurs in Residence (EIRs) program provides invaluable business insight to support its work with students, staff, and wider stakeholders. It provides mentorship and guidance to students and graduates interested in starting their own businesses.
The program features experienced entrepreneurs who have already achieved success in their respective fields. They offer valuable advice and support to the participants in areas such as idea generation, product development, marketing, and fundraising. The program emphasises hands-on learning and skill development, and its overall goal is to help aspiring entrepreneurs turn their ideas into successful businesses.
On the 22nd of March, 2023, Leon delivered an interactive workshop and networking event for the Hull University Business School Help To Grow Management Course
The masterclass focussed on growing and scaling your business with a deep dive into a start-up's key financial principles, pricing, and marketing strategies, including how to Identify the top barriers preventing you from scaling up and developing an industry-dominating business by looking at the 4 Disciplines of best-in-class companies built to scale.
Director of Business Engagement and Enterprise at the University of Hull-Richard Keegan said it was a
"must-attend for any SME leaders wanting to scale up their business."
If you are interested in the Univerity Of Hull's 'Help to Grow' Management growth programme sign up today!
Scaling Up Your Business
As an entrepreneur or business leader, achieving growth is a top priority. However, growth doesn't happen by chance; it results from making intentional and strategic decisions and decisions are equal to success. This article will discuss four crucial decisions that can help drive your business growth; People, Strategy, Execution & Cash!
To achieve long-term business success in today's fiercely competitive world, it's essential for bubusiness to have a solid framework to drive four crucial decisions that drive business growth: People, Strategy, Execution, and Cash
Leon's guest lecture was inspired Verne Harnish Mastering the Rockefeller Habits and the business classic Scaling Up - Verne Harnish and his co-authors share practical tools and techniques to help entrepreneurs grow an industry-dominating business without it killing them - and actually have fun.
“Millions of people start new ventures, and of
those that survive, 96% remain “mice.” It’s only a few — the “Gazelles” that scale beyond £10 million, £100 million, or £1 billion in revenue” (Harnish, 2014,)
1. People: Hire And Retain The Right Talent
Your people are your greatest asset, and attracting and retaining talent is essential for your business growth strategy. You need to identify the skills and qualities required for specific roles and ensure that the people you hire fit the bill.
Conflict between employees can lead to reduced productivity, so it’s vital that you address any disputes quickly and efficiently. Effective communication is essential in resolving conflicts and having a clear process for dealing with them. Additionally, retention is critical, and you must create a culture where employees feel valued, challenged, and engaged to reduce employee turnover. Investing in employee development and creating a welcoming, collaborative environment can help you retain valuable staff members.
2. Strategy: Have a clear and focused strategy
A clear strategy provides direction and purpose for your organisation, and a focused approach ensures that your resources are allocated towards high-impact initiatives. If your revenue growth is slowing down, it may indicate that you're facing strategy challenges.
In this case, it's essential to closely examine your strategy and what you're offering to your target customers and niche market. Your strategy should be grounded in a deep understanding of your customers, market, and competition.
Additionally, it should be centred around a strong vision of where you want to take your business. Setting goals and clarity will ensure that your team is working towards the same objectives and can identify what success looks like when they achieve it. A well-defined strategy can help you develop the right strategies for long-term growth, position yourself competitively in the market, and capitalise on new opportunities.
Ultimately, your strategy should be based on what makes you unique and how best to serve your customers. Having clarity in this area is essential for business success. Whether launching a startup or scaling an established organisation, a solid strategy is essential for achieving growth.
3. Execution: Nailing Your Execution
Great ideas are not enough, and flawless execution is essential for business success. When your revenue is growing, but your profits are not, you may need help with execution. You must define goals, milestones, and metrics to measure progress and establish systems and processes to ensure accountability, transparency, and effectiveness.
Time management is a critical component of execution and can be improved by setting deadlines, planning, outsourcing tasks when possible, and focusing on high-value activities. You should also document processes to ensure everyone follows the same steps to reduce mistakes and increase efficiency. Mastering the art of execution habits can significantly improve gross margins and profitability and reduce the time required for completing tasks.
4. Cash: Manage Your Cash Flow Effectively
Cash is the lifeblood of any business, and managing your cash flow effectively is crucial for survival and growth.
You need to have a clear understanding of your cash position at all times, maintain sufficient reserves, manage your receivables and payables, and make decisions that align with your cash flow objectives. Leon suggests that companies calculate their Cash Conversion Cycle (CCC). The CCC measures the time it takes for the company to get back the cash it spent on expenses. If a company's CCC is shorter, they have less money tied up in accounts receivable and inventory.
What decisions will you make?
Management decisions are a critical factor in enabling business growth. It is essential to consider a range of factors, including economic conditions, customer needs, competitive environment and industry trends. You must also consider the impact of any decision on your financial performance, human resources and operations.
By making the right decisions in these four areas, you can position your business for growth and success. However, these decisions are interdependent and require careful consideration and execution. You can establish a strong foundation for sustainable growth and achieve your business goals with the right focus and effort.
Look at our other blogs for more helpful information.
We aim to provide you with the knowledge and tools to make informed decisions and maximise your success. We hope this helps you reach your business ambitions!
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