Building a Strong Business Foundation: Strategies for Small Business Growth
Imagine growing your business like a building. The ground needs to be prepped and the foundation strong to support the weight of the tall
structure. You can keep adding levels and growing higher, but without a strong base, the building will become more vulnerable the taller it
gets.
For Australian businesses, whether scaling up or striving to maintain stability, the bedrock of success lies in a strong foundation that fosters not only current operations but also future opportunities.
The foundation upon which your company stands is as critical as the strategies you implement for growth.
Sustainable growth takes time and effort. Each level needs to be added with care. As you grow, you need to know where the support beams are at the levels below.
BHT Partners is committed to guiding small businesses through the essential elements of building a robust foundation for growth. In order to do this, we will look at the following three facets—Revenue Optimisation, Leadership Development, and cultivating a strong Vision, Values, and Culture.
In order to ensure you are on the path you want to be for your business growth, start with defining your vision.
Vision, Values & Culture: The Heart of Your Business
Defining your vision for where you would like your business growth to lead will help you keep focused and make your efforts more effective.
Highlight the WHY behind your business and then use that as a compass to ensure the opportunities you accept align with that vision. No one wants their business growth to look like the Leaning Tower of Pisa.
The culture within a business significantly influences its success. A strong, positive culture fosters employee loyalty, enhances customer satisfaction, and solidifies your brand perception and identity.
Address Retention Proactively
Create an environment where employees feel valued and part of something larger than themselves. Offer opportunities for professional development, recognise and reward contributions, and foster a workplace that promotes psychological safety and well-being. When your team feels supported, they’ll support you, and your employees have the most direct impact on your clients.
Now, do not mistake proactively addressing retention with giving staff a raise. While in some instances this is needed, some staff may flourish under more flexibility or even more responsibility.
Repositioning an employee into a role better suited for them creates a business culture that truly cares about its employees’ happiness while also increasing productivity and employee retention.
Maintain Trust and Loyalty
Upholding the company’s values and vision is crucial during challenging times. Consistently communicate these principles to your team and clients by ensuring they are reflected in every business decision. This transparency builds trust and loyalty to the brand, which is especially important when navigating tough periods.
Staff will feel the constant ethos, and customers will know they can rely on the quality and output they have acquired as associates with the business. It is up to you whether this is a good thing or not.
Revenue Optimisation: Maximising Efficiency and Profitability
Revenue optimisation is pivotal for the health and growth of any business. It involves more than just boosting sales; it's about enhancing the efficiency of your operations and the effectiveness of your pricing strategies.
Here are practical tips to enhance your revenue streams:
Process Streamlining
From your supplies to helping your customers, analyse each process to see exactly how it works. How are things handled, from the manual labour to the admin? You’ll need to anticipate where things may hit a stumbling block.
Imagine needing to mark every item of stock as received within 24 hours on physical paperwork only to find out that you do not have a printer and the stock is all in unlabeled boxes that will need to be sorted.
The purpose of streamlining is to make the process simpler and faster. Technology has many innovations that can help with some of your repetitive tasks.
A suggestion would be an electronic inventory that allows you to import invoices and mark the connected stock items as arrived if the delivery notice is accepted. You may even be able to have the item quantity automatically updated with the amount that was ordered.
This would save your team a lot of time that can be better used to make sales or serve clients.
Reduce Costs
Carefully analyse all business expenses to identify areas where costs can be reduced without compromising quality. Consider negotiating with suppliers for better rates, reducing waste, or adopting more efficient technologies.
In the above example, the electronic inventory system may cost $35 a month, while the cost of the staff manually checking and writing up the stock as received may cost $97 a month (minimum wage of $24.10 per hour over 4 hours).
Furthermore, if the staff is able to sell more stock in the time the system has saved them, this is profit that would have been missed previously.
Optimise Pricing Strategies
Develop a pricing strategy that reflects the true value of your offerings. Consider factors like market demand, competitor pricing, and perceived customer value. Many people are willing to pay more when they can see the value.
Regularly reviewing and adjusting prices based on these factors can help maximise your revenue without alienating customers.
Leadership Development Tips: Steering Your Team to Success
Effective leadership is the driving force behind a thriving business. As your business grows, so too should the capabilities of your leaders. Leadership development is crucial in ensuring your management team can handle larger teams and more complex projects.
Improve Operational Efficiency
Invest in training programs that enhance the skills of your leaders, focusing on areas like project management, time management, and effective communication. This investment can lead to significant improvements in productivity and operational efficiency.
Explore New Revenue Streams
Encourage leaders to think innovatively about new revenue sources. Whether diversifying product lines or expanding into new markets, leaders should be empowered to explore various avenues that align with the business’s core competencies and market trends.
This is where knowing what your audience gets out of your business is key. The value you may have thought you provide may be different to what the customer actually wants.
V8 juice started out as tomato juice for Bloody Marys, but then they learned that people were buying the product as a source of vitamins and began to incorporate other vegetables. Now, they are positioned as a health drink with many recipes. The vision of becoming a household name was still achieved, simply by a different stream than they originally imagined.
Implementing Your Foundation
It needs careful planning, strategic execution and a commitment to delivering value to your customers. Here are steps to implement these foundational elements:
1. Conduct a Business Review: Regularly assess your business practices and market environment to identify areas for improvement in revenue optimisation, leadership, and culture.
2. Set Clear Objectives: Define what success looks like for each area of your foundation. Setting clear, measurable goals will help track progress and make adjustments as needed.
3. Engage Your Team: Involvement from your team at all levels is crucial. Gather input, communicate importance, and actively engage your employees in reinforcing the business’s core values and goals.
4. Monitor and Adapt: The business environment is constantly changing. Regularly review your strategies and practices to ensure they remain effective and adjust them as necessary to meet new challenges.
Building a strong business foundation is not a one-time task but an ongoing process that requires dedication and adaptation.
At BHT Partners, we are here to support you with expert advice and strategic insights to ensure your business not only survives but thrives.
Together, we can lay a foundation that supports tall growth and lasting success. Contact
us
today.