How to maximise the growth potential of your business in both expanding and declining sectors

Is your sector expanding or declining – and what does this mean for the growth potential of your business?

The potential for growth within your company is important for all business owners. Growth – which encompasses an array of issues, including range of products and services, turnover, profit and customer relations – is often linked with higher rewards for business owners. Growth delivers immediate returns, but it also makes your business more desirable to potential buyers, if and when you decide to sell. One of the key factors to working out your company’s growth potential, is to identify whether your industry is growing, stagnating or declining.

Factors beyond your control

Unlike variables such as turnover, profit and cash flow, which all play a part in making your company valuable to potential buyers, growth potential is often less easy to measure correctly – after all, none of us has a crystal ball.  What’s more, growth often follows a bell curve; rather than a straight trajectory upwards, it often curves upwards, and then curves back down again – and it can be hard to tell where exactly on the curve your business is. This bell curve is often dictated not just by the decisions you make within your business, but by wider economic circumstances, including whether the industry you are in is growing or in decline.

I use a tool called Value Builder to help business owners understand where their business is performing well and address areas that can strengthen its performance – and ultimately its value to potential buyers.  The impact that a declining or growing industry can have on growth potential is one of the areas that Value Builder examines

A growing industry

An industry which is growing may be doing so at about the rate of growth elsewhere in the economy – or much faster than other sectors.  Either scenario presents an opportunity, but that doesn’t mean you can rest on your laurels.  A fast-growing sector is attractive to others, so you can expect new competition: it’s not enough to be one of the first in your sector, your challenge now may be to stay ahead of the game and we need to think of strategies that will put you there. If the market is likely to become saturated, we may also have to think of additional strategies that either make you stand out in a crowded market place or that enable your business to move into new areas.

A declining industry

On the surface, this is a less desirable position to be in, but it doesn’t mean your company inevitably has to shrink along with your industry.  Think of two flourishing companies selling saddles in the 17^th Century; company A only sells saddles, but company B starts to manufacture accessories used in transport. Company A will probably go bust, but company B could now be a company like Halfords.

Diversification is one way of bucking the fortunes of a declining sector, but it isn’t always a magic wand.  Let’s take an example from a ‘few’ years ago – a tthe TV rental companies which, realising that more and more people are buying their TVs outright, moved into video tape rental?  It certainly kept them out of the frying pan for a while, but the fast-moving pace of audio-visual technology means they   needed to keep spotting emerging trends to prevent their demise.

Identifying where your business is and the right strategies to maximise its growth potential 

Working out where your industry is means keeping abreast of sector news and technological developments that may have an impact on your sector.  Sometimes these may be obvious, but sometimes they can take time to filter through; the companies that are most likely to continue to grow are those that keep their eyes and ears open, anticipating new opportunities before their competition.  But there is no ‘wrong’ position to be in; if we work out where your industry is on its growth curve, we can develop strategies to maximise the growth potential of your business.

Value Builder exclusive offer

Value Builder is an extraordinarily powerful tool to give business owners the insights they need to meet their business and personal goals, so I am personally committed to making it available to entrepreneurs in Kent, Sussex and Surrey, in the area indicated in the map.

Value Builder normally costs business owners £500.  However, I am delighted to offer it to selected businesses free of charge – and I am also pleased to offer the follow up 90-minute 121 consultation to go through your results at my expense.

Why?  Well, I want businesses to have the very best chance to grow and develop, delivering the results business owners and their families deserve.

Secondly, I want to see businesses thrive and recruit additional team members to further grow the business and help to boost the local economy.

The full list of towns where I can provide this service is below, but if you don’t see your location, give me a call or drop me an email I will let you know if I can help you.  If I can’t, I’ll put you in touch with one of my colleagues who helps businesses in your area.

To apply for your FREE Value Builder report and business strategy review

Call 01732 453 464

Or email julianweekes@actioncoach.com

I help business owners in the following towns:

Don’t see your location in the list? Drop me a line and I’ll let you know if I can help you – or put you in touch with one who my colleagues who works with business owners in your area.

My clients benefit from supporting material and coaching in the following business areas:

Looking for support in one of these key business areas?

Call 01732 453 464

Or email julianweekes@actioncoach.com