Why Growth Strategy important for small and medium business units
Why growth strategy is important? Many small and medium business owners feel the growth strategy is not important because they are growing already. Let me ask a different question to small business owners. What is the value of your business, if you decide to sell today or add additional partners? With our experience most of the small and medium business owners have not thought about it seriously or they think it is matter for financial experts to work out .
The realty is,many business ownersare not aware that the business value is not numerical calculation by business accountant, but this is result of continuous growth strategy implementation by the management.The business valuekeeps changing over time and many factors contribute to this. Some of the factors which influence the business value are customerengagement,customer loyalty, market potential, market share, Risk analysis, past earnings, assets / patents owned, future earning potential etc. The past earnings in business is no guarantee that the future earnings can be extrapolated by arithmetic modelling except in very rare cases (and that too with many assumptions)
There are four important perceptions of the business which requires regular monitoring and improvement to maximize the business value.They are Customer engagement, Business process , Trained manpower and Business financial ratios .A business tool popularly known as Balanced Score Card can be used to keep track of all these perceptions. Balanced score card is complex and its implementation requires intense business experience and knowledge.
We, at Rs BIZ Consultant have the required business skill and experience to work with small and medium business owners in manufacturing and engineering service industries to implement balanced score card methods. The growth strategy and normal business strategy are different.
Contact us to discuss how to maximize your business value and maintain at its best always?
A BUSINESS UNIT WITHOUT A GROWTH STRATEGY IS LIKE A VEHICLE MOVING WITHOUT KNOWING THE DESTINATION.
“What’s measured improves” — Peter Drucker
