With customer demand looking likely to increase into the future, now is a great time for businesses to plan for growth and expansion. In this blog post, we’ll explore 4 strategies you should consider as you adapt your business to the new normal:
1. Consider Entering New Markets.
Offering your product or services to new markets is one of the most well-known mechanisms to grow a business – but it’s also one that comes with greater uncertainty. Entering a new market requires extensive marketing and/or leveraging connections to promote word-of-mouth referrals. It can make production modelling more difficult to predict, since you can’t rely on past trends to predict demand in the new market.
Before entering a new market, you should undertake all the planning and due diligence you would before starting a new business. Consider your customer profiles, test your advertising strategies, and reflect on your current financial resources to determine whether the risk of entering a new market is right for you.
2. Exit Non-Profitable Markets and/or Products.
For your business to thrive, you must use the time and resources you have in the most profitable way possible. This means that it’s incredibly important to gather data about your business operations, specifically how profitable what you’re selling is for your business. This information allows you to make informed, strategic decisions about the direction of your business, including which products/services you should no longer offer.
If you aren’t already collecting this data, it’s time to start. Reach out to your accountant if you aren’t sure how.
3. Review Your Overheads.
The less you spend on your overheads, the more funds you will free up to grow or maintain your business. You should regularly review the amount you are spending on expenses that don’t necessarily offer a return. These expenses include your phone plans, insurance, business vehicles, office supplies, subscriptions, utilities, travel, banking fees, and interest. Essentially, any recurring expenditure should be regularly reviewed to determine whether you are getting the best possible deal. If you’re not, make a switch! (Though, always be conscious of early exit fees as well as fees, terms and conditions associated with entering a new contract).
Conversely, you should also consider increasing the amount that you are paying for particular products or services that are beneficial for your business. For instance, increasing your advertising comes at an additional cost – but it usually comes with a tangible return on investment. Similarly, opting to invest in future-focused business advisory services sets you up for future success.
4. Assess Whether Your Business Premises Suits Your Needs
Your business premises can hold the key to significant positive changes to your business operations. Businesses suffer when the premises are too big, too small, or the rent is too high. You should periodically review whether your business premises suits your current and anticipated future needs, and make changes accordingly.
Here are a few considerations to think about:
- Do you need to maintain a business premises? The pandemic has changed the face of business, and more business is taking place online.
- If you wish to keep your business premises, could you get a better deal by moving elsewhere?
- For instance, are there upcoming areas where buying/leasing a premises is more cost-effective?
- Are you likely to buy additional equipment in the future to bring more operations in house? If so, do you have the space to house it?
Your business accountant can advise you on the tax implications of buying or leasing a commercial space – and which option is best suited to your needs.
Proactive Business Advisory Services with Sharp Accounting
Sharp’s accountants don’t just assess your deductions or balance your books. We pride ourselves on our proactive advice that’s geared towards future growth for your business.
For tailored business advisory services, contact Sharp Accounting.