Having a successful business can help provide for your family and create job opportunities for others. But you need business growth to keep you on the right track.
The last few years have been rough on all businesses – big business, small business, and anything in between. We’re currently dealing with skyrocketing inflation, soaring interest rates and rising cost of living expenses. And they show little sign of slowing.
But is it as bleak for businesses as the media would suggest? Definitely not. Many businesses are taking advantage of today’s economy to hit the ground running, and many others are still experiencing excellent business growth.
Business growth is absolutely still possible (and it’s happening all around us). We just have to be more strategic in our growth strategy.
Business growth and small businesses
According to the Australia Bureau of Statistics (ABS), there were over 2,569,900 actively trading businesses in Australia as of June 2022. Between 2021 and 2022, there was an increase in the number of businesses (net) of 167,646 and of those 140,102 were non-employing, or small businesses.
In fact, small businesses with less than 20 employees accounted for 98% of all businesses in Australia. They also accounted for almost half of the total employment in the private, non-financial sector.
The number of micro businesses (those employing no staff) grew 10% between June 2021 and June 2022. And small businesses in Australia grew 3% over the same period, an increase on the average annual growth rate of 2.2% over the past decade.
So, despite the challenges posed over the last few years, and the difficult economy we’re facing now, small businesses are still thriving. They’ve adapted to the changing circumstances and have continued to experience business growth. So, what are the potential consequences of not growing? And why are we worried about it?
Consequences to a lack of business growth
1. Stagnation: If your business doesn’t grow, it may become stagnant. That means that it’s not keeping up with changing market trends or customer needs. As a result, your business may lose its competitive edge, and customers may turn to competitors who offer better products or services.
2. Reduced profitability: Without growth, your business may struggle to increase its revenue and profits. This could limit your ability to invest in new products, services or marketing efforts, which may be necessary to stay competitive and attract new customers.
3. Reduced efficiency: As your business grows, it can often achieve economies of scale that allow it to produce goods or services more efficiently and at a lower cost. Without growth, your business may miss out on these efficiencies, which could increase its costs and reduce its profitability.
4. Limited opportunities: Growing businesses may have access to new markets, customers and partnerships. Without business growth, you might miss out on these opportunities, which could limit your potential for expansion and success.
Overall, while growth isn’t always easy, it’s often necessary for businesses to remain competitive, profitable and sustainable in the long run. This is what I want to see for women-led businesses. That they can grow in both their revenue and their profit. That they can feel a sense of financial freedom.
How to grow your business
So, having said all of that, I thought I would share with you several ways to grow your business.
1. Build relationships with your customers: Make it a priority to understand your customers’ needs and preferences and focus on building long-term relationships with them. This can help increase customer loyalty and drive repeat business.
2. Leverage social media: We all know the power of social media for marketing and promoting your business. Create a presence on social media platforms where your target audience is active. Then engage with them through regular posts and content.
3. Attend networking events: Please don’t eyeroll me! Attend local business events and networking groups to connect with other professionals and potential customers. This can help you expand your professional network and find new business opportunities.
4. Offer promotions and discounts: Offer special promotions and discounts to incentivise customers to try your products or services. This can help you attract new customers and drive sales.
5. Focus on customer service: Make sure your customer service is top-notch and that you’re addressing any customer complaints or issues promptly. Word-of-mouth referrals can be a powerful tool for growing your business.
6. Invest in your people: Whether that be employees, contractors, or suppliers, having good people around you is key to helping your business grow.
7. Monitor your competition: Keep an eye on what your competitors are doing and look for ways to differentiate your business from theirs. This can help you stay ahead of the curve and help you find new business opportunities.
Stay committed to the process
Growing your business takes time and effort. You have to stay committed to your goals, be patient and continue to learn and adapt as your business evolves. Oh and remember that growth also hurts sometimes. Just know if it hurts, you are probably in the messy middle!
Get in touch!
If you’ve read this and thought to yourself, there has to be more, please reach out! Let’s have a chat about how we can get you some momentum and vital business growth.