Test if you are ready to grow
Growth and innovation involve the right plans, resources and attitude, no matter what size or stage your business is at.
Dig into what it takes to grow and innovate. Plus use our quick self-assessment to check if you and your business are ready to expand.
Whether you develop new products, move into new markets or create innovative business models, strategic growth can lead to substantial financial and personal rewards.
It's important to be ready for any challenges you might face. Consider your strategy, market position and capabilities when you are weighing up whether you’re ready to grow your business.
Why grow?
Business owners and sole traders who strategically grow:
- increase their profits and sales
- stay relevant
- perform better than their competitors
- have a better chance of surviving in the long run.
There are several government-supported programmes and funding opportunities to help you grow your business.
Planning to grow
Hone in on what you are trying to achieve and why.
Set goals that are:
- Specific: Define exactly what you want to accomplish.
- Measurable: Make sure you can track progress and measure outcomes.
- Achievable: Create a plan with a reasonable chance of success.
- Relevant: Check your goals align with your overall strategy.
- Time-limited: Work towards a deadline to keep on track and focused.
The next step is to identify the strategies and tactics you can use to achieve your goals.
Common growth strategies
Each has its own potential risks and rewards.
Work with advisors to choose which is the most appropriate for you — and continue to do so as you grow. A support network will help you achieve better results.
| Growth strategy | What it’s for |
|---|---|
| Product development | Creating new products and services for existing markets. |
| Market penetration | Selling more existing products and services to existing markets. |
| Market development | Selling existing products and services to new markets, eg another part of New Zealand or exporting. |
| Diversification | Developing new products and services for new markets, eg another part of New Zealand or exporting. |
Plan for success and for failure.
A good growth plan includes KPIs — key performance indicators — and contingencies.
Realities of growth
When you take your business to places it’s never been before, challenges will crop up.
Common realities of a growth spurt include:
- Increased costs and overheads — keep an eye on your cash flow. You may operate at a loss for a time. Talk with your accountant about how to plan for this, and how to get back on track.
- A significant change in your current systems and structures — or a need to start new systems and structures.
- Competing priorities.
- A shift in your company culture.
- Realising you need to hire new people, or train existing staff to meet growing demands.
Liken growth to going up a steep hill in a manual car. The hard work you put in upfront will have few immediate results. But if you keep on course, you’ll build up momentum and speed over time.
If you’re growing fast, consider setting up a board for support and advice.
Boards can provide you with the high-level support you need to reach your potential.
Common mistakes
- Not seeking external advice — work with trusted advisors to ensure your plans are realistic and achievable.
- Quickly hiring new staff to deal with an increased workload — first weigh up the long-term scope and cost of any new roles, and only bring on people who are right for the business.
- Not measuring your progress — decide what to measure, and how to measure it. This will help you see when things are working, and when you might need to make changes.
- Not being ready and willing to scrap your agenda when things aren’t going according to plan.
- Underestimating the costs of growth — think about your finances, but also reflect on how to effectively use your time and headspace.
