Beyond the Kitchen Table: How to Grow Your Business Effectively
Running a small business in New Zealand often starts around a dining table. Conversations happen over dinner, decisions are made informally, and everyone pitches in. But as the business grows, it needs more structure. Here are five simple steps to help your business move from 'dining table governance' to a more formal setup and grow.
1. Formalise the Decision-Making Process
Why It Matters
When a business is small, informal chats can work. But as it grows, having a clear decision-making process becomes important. It helps in making consistent and smart choices.
Steps to Take
- Set Roles: Define who does what in your business. This avoids confusion and ensures tasks are done efficiently.
- Regular Meetings: Schedule regular meetings with set agendas. This helps everyone stay on the same page.
- Document Everything: Keep notes of decisions made during meetings. This creates a record you can refer back to.
2. Develop a Strategic Plan
Why It Matters
A strategic plan acts as a roadmap for your business. It helps you see where you want to go and how to get there.
Steps to Take
- Set Goals: Write down your long-term goals. What do you want to achieve in the next 5 or 10 years?
- Analyse Your Market: Understand who your customers are and who your competitors are. This helps you position your business better.
- Create a Plan: Outline steps you need to take to reach your goals. This includes marketing strategies, financial projections, and operational plans.
3. Leverage Technology and Tools
Why It Matters
Technology can make your business more efficient and productive. It helps automate routine tasks, so you can focus on growing your business.
Steps to Take
- Customer Relationship Management (CRM) Software: Use CRM software to manage customer interactions and data. This helps improve customer service and sales.
- Accounting Tools: Use accounting software to manage finances. This helps keep track of expenses, profits, and taxes.
- Inventory Management: If you sell products, use inventory management systems to keep track of stock. This helps avoid overstocking or running out of products.
- Marketing Automation: Use tools to automate your marketing efforts. This includes email marketing, social media scheduling, and ad campaigns.
4. Focus on Customer Experience
Why It Matters
Happy customers are the key to business growth. They come back, spend more, and tell others about your business.
Steps to Take
- Listen to Feedback: Ask your customers for feedback and listen to what they say. Use this information to improve your products and services.
- Improve Customer Service: Train your staff to provide excellent customer service. Make sure customers feel valued and heard.
- Reward Loyalty: Create a loyalty program to reward repeat customers. This can be discounts, special offers, or exclusive access to new products.
5. Seek Professional Advice and Mentorship
Why It Matters
Getting advice from experts can help you avoid mistakes and seize opportunities. They bring a fresh perspective and valuable experience.
Steps to Take
- Find a Mentor: Look for a business mentor who has experience in your industry. They can provide guidance and support.
- Join Business Networks: Become a member of local business networks or industry groups. This offers opportunities for networking, learning, and collaboration.
- Hire Consultants: For specific challenges, consider hiring a consultant. They can provide expert advice on things like marketing, finance, or operations.
6. Strengthen Financial Management
Why It Matters:
Effective financial management is crucial for sustaining business growth and ensuring long-term success. It helps in making informed decisions, managing cash flow, and securing investments.
Steps to Take:
- Budgeting: Create detailed budgets to monitor and control expenses. This helps in planning for future growth and avoiding financial pitfalls.
- Financial Reporting: Regularly review financial reports to track performance and identify areas for improvement. This includes profit and loss statements, balance sheets, and cash flow statements.
- Seek Investment: Explore opportunities for funding and investment. This could include applying for business loans, seeking venture capital, or crowdfunding to support expansion plans.
- Tax Planning: Stay on top of tax obligations and seek advice from a tax professional to optimize tax strategies and ensure compliance.
Conclusion
Moving from informal 'dining table governance' to a more structured approach can help your business grow. By formalising decision-making, developing a strategic plan, using technology, focusing on customer experience, seeking professional advice, and strengthening financial management, you can set your business on a path to success. Start implementing these steps today and watch your business thrive!