How quickly to grow a business...

I wondered if there is anyway of knowing how fast is too fast for a business to grow.

For instance if you launch a business and it starts to do well, then how do you know when to stick and when to twist?

Should you expand quickly by adding more products, or should you ramp up advertising and try and strike whilst the iron is hot.

It seems to be that many businesses stay at a comfortable level and miss the opportunity to expand but then again many business failures seem to be related to a business growing too quickly and then when demand dries up it cannot meet its costs and has to give up, as it were.

Given this, what is the best way to grow: should you aim for something like a 20% increase in turnover each year for instance, or just take it as it comes?

Re : How quickly to grow a business

It's a balancing act. You have to do many things simultaneously.

You have to maintain the growth of your existing business and plan for the day when it matures and declines (a combination of Ansoff's Matrix and Three Horizon).

Re : How quickly to grow a business

Also, look at Greiner's Growth model. It indicates the stages that companies go through.

Re : How quickly to grow a business

Well actually the most importantly in growing a business is the need of a good networking. Netwo9rking is important so that we may be able to identify the reliable supplier and able to provide high discount. And of course, we need to draw the appropriate advertisement to encourage people.
I can share you from my experince of growing a perfume & fragrances. shop in uk where to grow it, i need a lot of patients. Since i engage in perfume & fragrances business, to make it grow quickly, i need to increase promotion such as discount and offers. And of course, customer will start to evaluate your company based on customer services, Like me, i maintain customer services such as perfume reviews and many more. Thus this may help for a quick grow which can be achieved about 1-2 years

Re : How quickly to grow a business

There are companies that grow at 10% per year and are told they are over trading. It depends on your financial and staff resources.

When you need more staff resources try > http://www.drachsi.com Sorry can't help with the cash.

Drachsi
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Re : How quickly to grow a business

I heared if u get 5months back to back of making profit u know you can grow

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Re : How quickly to grow a business

It depends on the amount of capital you've got to invest and how great the demand is for your product.

Capital - a lack of this is probably the biggest barrier to businesses in the UK at the moment. If you've got plenty then look at investing in online marketing initially. If you want to be aggressive a combination of pay-per-click, email and sms marketing are good starting points. As long as you have a product and it's competitively priced then an aggressive marketing campaign is where you need to focus your business initially.

Demand - I'm guessing the demand has to be quite high if you're already considering rapid business growth.
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Re : How quickly to grow a business

It's easy for a growing business to get itself into an overtrading situation whereby there's not enough cash in the business to continue trading. Boom-bust.

Invoice finance (factoring/invoice discounting) can help by releasing capital in your business to assist with growth.

Please feel free to get in touch if you want to find out more

Susie
Just Commercial Finance

Re : How quickly to grow a business

It's a MASSIVE topic and a core part of any MBA course. See Harvard Business School (hbs.edu) or sites such as Guerrilla MBA (clickok.org)

Re : How quickly to grow a business

Cityman,

How good is the 'My Shopping Genie' business, i.e do you make a lot of money?
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