How to Ensure Your Business Keeps Growing After Covid
Now that we have come out of the worst of the Covid-19 pandemic and its successive lockdowns, many businesses are seeing a growth in their business. But how do you ensure that the growth is consistent and long term?
Here, we discuss why businesses stop growing after initial prosperity, and how to kick start a successful growth strategy for long term results.
How businesses grow in the early stages
Businesses typically evolve following a pattern of growth and stagnation – this is known as the ‘Growth Roller Coaster’.
When businesses begin, they typically grow consistently in the first months and years. Often there is just one director or a small partnership that are very involved and oversee all aspects of the business. Directors are able to provide excellent customer service to clients directly, and the low expenses and small-scale operation allow quick responses to customers and market changes.
In these early stages, businesses benefit from word-of-mouth from happy customers, driving further business growth. The personalities and skills of the partners are at the heart of the business.
At this point, or any point following a dramatic and prolonged event such as a pandemic, business growth may begin to falter. Increasing costs, new staff and more customers put more strain on directors and customer service levels may decline. If businesses focus on product or service delivery and pay less attention to client support, marketing and business management, growth becomes limited.
Investing time and effort to transition the company into a systems-based business is necessary for continued growth beyond this point.
Core components of all businesses
All businesses have three components:
This is how the company produces the products and services it offers to generate income.
This is essential for gaining new clients, retaining existing ones and maximising customer value.
This is how the business is run, including aims, strategies and finances to generate profit and wealth.
These three components work together to help businesses grow steadily and meet company targets.
Directors’ skills and expertise tend to lie in the process component. This means that businesses can only grow when there is capacity in the process function, but without the same development in the management and marketing areas, business growth is limited.
How to grow your business
To ensure that your business continues to grow consistently in the years after establishment, you need to make sure there is balance between the process, marketing and management of your business, with equal effort put into all three.
If your business is not achieving the growth targets set by directors, neglect of these two crucial areas is why. Make the transition from a process-led business to a management and most importantly a marketing-led business – known as a systems-based business – to achieve your business goals.