Do you know how to control the growth of your business? Do you even know what controlled growth means?
Business growth, at its core, is pretty simple. To grow your business, you sell more products and services, you add more customers, and you make more revenue.
Making more revenue is the primary focus of most business owners, at least the for- profit business owners. However, as I have shared with many of my articles on here, on LinkedIn, and with Forbes, business growth will always equate to added complexity in your business.
Therefore, I often discussed the importance of combining scale and improvement with growth. As your business grows, these techniques help you continue to grow. This complexity often requires you to exceed your current capabilities and capacities. Without scale and improvement your business suffers.
There is; however, a way to control your growth so that you do not exceed your current capabilities and capacities. Thus, you can continue to grow without having to scale or improve.
How do you do this?
First off, you need to determine your current appetite for growth. You need to know how much work you can handle before there is too much work on your plate.
Capacity considers all the resources that are consumed by your operation, such as hours, space, equipment, people, resources, etc. Capability represents your knowledge, skills, and abilities to do the job.
Typically, growth involves a combination of more than one thing in your business.
If you have not determined your capability and capacity limits, you will struggle at some point in your business growth.
The second step once you know your current capability and capacity limits, is to find ways to keep your growth from exceeding these limits, while you are still increasing revenue. Not an easy task, but totally doable.
Here are three ways to do that…
- Increase the value of your products and services so that you can increase your prices. If you simply increase your prices without increasing value, your sales will probably The goal is to sell the same amount at a higher revenue without increasing your internal cost. This will result in a higher profit margin.
- Find additional ways to monetize the resources you already have in ways that you have not previously considered. This helps you find ways to make more money from existing resources when they are not being used by your current processes. By working within your capabilities and capacities, you can continue to grow your revenue without breaking the business. It just takes some awareness and innovation. Business growth does not always have to be a “sell more” discussion. There are many ways to control that growth.
- Figure out ways to offer complimentary new products and services to existing This is the typical, “Do you want fries with that,” upsell question. By working within your capabilities and capacities, you can continue to grow your revenue without breaking the business. It just takes some awareness and innovation. Business growth does not always have to be a “sell more” discussion. There are many ways to control that growth.