Taking your business to the next level requires vision, ambition and, quite often a degree of speculation and courage. When the wider market and economic landscape seem precarious or uncertain, it can be tempting to just “sit tight” and put those plans on hold. But for how long? Uncertainty and volatility in the market shouldn’t necessarily be a barrier to growing your business – it might even be one of the best times, if your business is in the right shape.
In this article, I will explore some of the key ways you can ensure that your business is in the best position to push forward with those plans and grab any opportunities that come along, without exposing yourself and your business to an unacceptable level of risk.
1. Have a plan (and a Plan B)
Businesses can grow in any number of ways, including:-
- Mergers
- Acquisitions
- Product expansion or diversification
- Establishing your business as a franchise network
- Licensing, distributing or reselling arrangements
- Acquiring new office space
- Ramping up recruitment
It’s important to carefully consider what type of growth will best suit your business – taking account of economic conditions, any changes in your industry, and the marketplace as a whole – then plan accordingly and take appropriate legal and financial advice on implementing those strategies.
Once you have a plan, make a Plan B! One of the best ways to cushion yourself from any unforeseen events is to create a business contingency plan; one which recognises any adjustments which may need to be made to your current practices and legal or financial arrangements in the event of turbulent times ahead.
2. Don’t be afraid to try something new
For many business owners, the key to long-term business success and continuity is to stick to what you know and do it well and there is a lot of good sense in that approach. But for businesses looking to achieve real growth, it is important to look to more innovative solutions and embrace change to ensure that you remain competitive over time. Listen carefully to your customers, stakeholders and the wider marketplace. Take the time to critically appraise what you do well as a business and where you could look to improve or diversify. Are there any procedures, roles – or even clients – that no longer serve the interests of your business?
Innovation doesn’t have to mean completely abandoning your core business to fall in line with your competitors, but ambitious business owners will always keep one eye on the current demand and see where their particular skills best fit.
3. Stay agile
If the Covid-19 pandemic taught us anything it’s that you can’t prepare for every possible scenario. These are complicated and turbulent times and no doubt there will be further challenges ahead. The businesses which survive and thrive will be those who remain vigilant, plan for what they can, and adapt flexibly to any pitfalls as they arise. It is also important to have working practices and policies in place that will help you adapt quickly and seize valuable opportunities as they arise.
4. Get a handle on your finances
If you want to make sure your business is in a position to seize any opportunities as they arise, it is imperative to ensure that you have a god grip on your finances. Growth will inevitably mean investment into the business, whether this be in terms of time, money or a combination of the two. If outside funding is required, you will need to make sure that your accounting records are all in good order, with organised and streamlined procedures in place to be able to properly assess your financial standing and gauge how much funding your business might be eligible for.
5. Keep your legal affairs in order
In uncertain times, it is more important than ever that your business interests are legally protected.
Work closely with a trusted legal advisor to ensure you have everything in place to protect your business against any future claims or legal challenges and to optimise the benefit of the new strategies you are implementing. This could include instructing your solicitor to review your standard terms and conditions of business; assist in the creation of employment contracts; advise on the terms of a possible joint venture or acquisitions and so much more. By having properly-drafted legal documents in place now, you will have the peace of mind that your business is ready for whatever comes next.
For further information and advice on a planned expansion of your own business – or to discuss any other business-related matter – please contact Partner, Craig Malarkey, by phone on 0191 384 2441 or by email at cjm@swinburnemaddison.co.uk.
