Growing a small business is a different type of activity than establishing it. Planning and preparing for growth involves elements that are much more dynamic than when you were just beginning your venture. It is important to implement growth activities at the right time and at the right pace for your business’ infrastructure to handle. The approach taken toward growth goals should be based on how the current status of operations relates to where you want the company to be within the next several years.
Often business owners only think about the external environment when they are thinking of how to grow (new markets to enter, the level of competition, regulatory environment, etc.), but it is also necessary to think about your internal business infrastructure (efficiency of operations, employee personalities and organizational culture, relationships with suppliers and distributors, etc.) and how well it will be able to handle change. For instance, if you want to expand by offering a new product line, do you have the manufacturing and distribution capacity to handle that? Can you afford to finance in-house infrastructure in order to handle the extra capacity? Is your staff composed of people who are resistant to change? Will they help you implement growth or will they resist it?
Below we provide some common principles for growing a small business as well as some popular ways businesses tend to expand. These tips will give you a framework for how to think about growing your business. There are also many tools, resources, and programs available to help you make the necessary determinations, develop effective plans, and take advantage of incentives offered by New Mexico programs. If you are experiencing difficulties getting a permit, license or any other issue with a state agency, please contact our Office of Business Advocacy. See the BRC Toolkit and the BRC Directory for more details.
SOURCES: 5 Essential Principles for Growing Your Small Business found in Fast Company and 7 Key Steps to a Growth Strategy that Works Immediately found in Entrepreneur.