Laura ColeBusiness confidence is continuing to rise on a global scale, as consumers develop a healthier outlook and continue to spend more. This is especially the case in the U.S., where consumer confidence has risen to its highest level since July 2007 and positive business sentiment is also being driven by significant job gains and falling gas prices.
This is also the case in the UK, where genuine property market growth is being experienced nationwide. Although the rate of growth in the real estate market may have diminished slightly, recent statistics have suggested that prices have risen by an average of 11.7 percent across in regions such as the South West and the East and West Midlands.
Scaling Your Business Venture Securely And Effectively
These factors all contribute to a productive business environment, and offer even small and medium sized firms the opportunity to expand and scale their operations. This requires a strategic and balanced approach, however, and one that strikes the balance between daring risk and financial reward. For example:
For Freelancers: Create A Long-term Business Plan That Can Be Sustained
If you are an ambitious freelancer with a desire to scale your operations to a point where you employ others, your ability to develop an infrastructure is crucial. This will underpin your businesses growth, and enable you to take on additional work without being forced to compromise on quality. You must also factor in realistic time-frames, as your venture must be allowed to develop organically and in a way that is sustainable overtime.
To achieve this, you must start by considering which business model is right for you. While you may feel as though you can generate more income by operating as a limited company rather than a sole trader, this will also encumber you with higher levels of expense, inflated start-up costs and potentially crippling rates of taxation. If the costs and financial liabilities that you incur outweigh your additional income, you should remain as a freelancer for the foreseeable future. If you decide that expansion is a viable option, be cautious when implementing time frames and breakdown your investment into manageable sums.
For Small Business Owners: Recognize Triggers That Can Drive Expansion
A similar challenge faces existing small business owners, who must look for specific triggers before deciding the time is right to develop their venture further. The first such trigger is when your business reaches ‘break-even’ point, as its income levels begin to supersede costs. This should prompt a re-evaluation of your venture, as you begin to become profitable and look to scale your revenues furthers. The next step comes when your business begins to outgrow its existing means and resources, as the workload and demand for services overwhelms your employees and infrastructure.
These represent seminal junctures in time for business owners, and they underline the importance of organic growth. The key is to develop your business slowly and focus on delivering quality to customers, whether this is in the form of products or services. You must then adopt a reactionary approach and only look to develop your business when there is demand or justification to support this. So once your business exceeds its break-even point, you can use additional profits to fund further growth. Then, when it has developed a sustained and constant flow of work that overwhelms your existing resources, you can safely invest in additional staff members and software that aids productivity and boosts turnover.
For Medium Sized Businesses: Understanding The Cyclical Nature Of Commerce And Identifying New Markets
Interestingly, successful businesses may find that experience cyclical periods of growth and consolidation. This means that there may be several occasions where the demand for services becomes too great for a business to handle, meaning that they must expand even further to meet their needs of their growing consumer base. As a result, medium sized business owners must always remain alert and continue to review the performance of their company to ensure that they are able to deliver a consistent quality of service.
Another important consideration for medium sized firms is the potential offered by new markets. While it is well known that the emergence of analytic CRM has made it easier than ever to develop a detailed insight into an existing consumer demographic, for example, this software can also be used to precise define new target markets. By collating and analyzing accurate customer data, you can organically grow your market share and turn a medium sized venture into a larger business entity.
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