For many businesses growth is an important goal. It’s a measure of success and confidence in your product and methods, it makes your business more stable, and it brings in more money! When you’re planning to grow your business, though, you need to be aware of all the factors that can influence that growth – things that can add up to a good, healthy growth opportunity, and things that can make an originally tempting looking prospect more risky.
Today we’re looking at some of the things you need to think about when you’re growing your business in 2022.
When you’re planning any kind of expansion – from adding new products to your inventory, to opening new branches in different cities or hiring more staff, cost will always be one of the most important calculations you make. How much will it cost you to expand, and how much can you expect to make as a result?
The last two to three years of international events have made it very clear that many costs are subject to inflation and disruption, and you need to think about how you’d be affected by these issues as you budget to expand. For example, energy is at a record high price currently and set to climb yet higher as a result of turmoil in Russia. If you’re opening a new shop somewhere, you’ll have to keep it lit and heated, and that could turn into a runaway cost.
As you’re budgeting for an expansion, look doubly hard at the costs, and work out how much margin you have for them to increase, as well as things you can do to control them. Ensuring you get fixed tariffs on utilities, for example, makes these calculations much easier.
Attracting and Retaining Customers
Don’t forget your customers are subject to those same factors, squeezing their willingness and ability to spend. Think specifically about how your offering tempts customers in the current moment – we may be post-Covid, or simply between waves, we are facing an escalating cost of living crisis, and we’re facing turmoil in Europe that may raise prices further or lead to more supply chain issues. All these factors weigh on a customer when they’re deciding to spend money with you – or not – so you need to think about how your offering meets, or at least interacts, with those needs.
If you want to make sure your plans are fit for success against the challenging backdrop of 2022, it might be worth getting some help. Business consultants specialising in growth strategy can be a big help – with a wider perspective on the business world, but a narrow focus on growth they can inform your plans and help you identify pitfalls you may not have noticed.
If you’re interested in strategy consulting London hosts a variety of firms to suit a broad range of needs and budgets, so start searching today!