Key Considerations When Planning for Business Growth
Are you ready to grow your business? With the realm of ecommerce booming and the Middle East positioning itself as a key global player, there has never been a better time to take your business to the next level. However, before you order double your inventory or hire five new staff members, there are some factors to keep in mind. Let’s explore these in more detail.
Understand Market Demand
Before you can make an informed decision to grow your business, you need to understand the market demand for your product or service. Are customers making more frequent purchases? Are you able to reach more customers?
If you notice that your customer demand is dwindling, it might be time to take your business in a different direction, such as changing your product offerings or expanding the services you provide. Using market research and hosting independent studies are great ways to pinpoint your market demand.
Plan Your Resources
Growth relies on proper resource planning. After all, you can’t expect to grow 20% if you don’t have the capacity to take on 20% more orders. Before you grow, take the time to evaluate your resources. These include your cash levels, inventory stock, equipment capacities, and your labor force.
Finding employees or purchasing new equipment can take time. It’s best to have these items planned out well before your business begins to grow in revenue. Using a budget and forecasting your sales can be great starting points to plan your resources.
Factor in Taxes
Too often, business owners focus on growing and neglect to think about taxes. This can leave you scrambling for cash to pay an unexpected tax bill. Tax planning throughout the year with a qualified accountant can help you understand your upcoming tax bill. This is especially important if you plan on selling across borders.
In addition to income taxes, sales tax and value-added taxes (VAT) are other types of taxes to keep in mind. You might be subject to international taxes depending on where you sell. However, many countries have treaties in place to lower your tax burden. Check with an accountant to stay in compliance with all regulatory agencies.
Consider Technology and Data
As your customer list grows, your data does too. How will you safeguard this information? Larger businesses are often prime targets of cyber hacks and attacks, which can result in hefty fines and penalties if your business doesn’t take the proper precautions.
During the growth phase, it’s important to revisit your technology and data-storing policies. You want to have the software and controls in place to protect your business and customer information from unauthorized third parties. Consider enlisting the help of an IT specialist if you are struggling.
Summary
Are you fully prepared for growth in your business? If not, it’s important to assemble a team to help you navigate business growth. This might include bringing on more employees or working with an accountant. For more strategies on how to grow your business, check out our other blog posts.
