After a couple of years, you start your business, you should look at your business – the availability of funds and how you are meeting your goals – to make sure that your business is growing.
When it comes to approaching investors and lenders, it is paramount to have a growing business. Many start-ups assume that they are well established without evaluating each aspect of the business. As a result, they end up failing to convince lenders and investors.
Before you embark on your journey, it is essential that you know where you stand. Failing to understand your current condition will make it difficult to achieve your goals, and you will end up wasting your time and efforts.
Here are some questions you should keep asking yourself from time to time to ensure the growth of your business.
Are your monthly funds growing?
Your income is what you have left after meeting all of your expenses. Many entrepreneurs live under the impression that they are growing as long as some cash is available there, but this is not the right way to gauge your growth.
Your business is growing if the amount of cash left over is increasing every month after meeting all of your expenses. Most of the companies operate at losses and their cash flows stay stagnant, which is why they make strategies to increase sales, change pricing policy, introduce new product line, and the like.
Healthy businesses see increased profits every month. In case, your business is not generating enough profits, you need to chew over the ways you can introduce to keep your profits ladder up.
Are your customers happy with your product or service?
Sometimes, poor marketing strategy and pricing policy do not account for poor revenues. You may get surprised to see a company is generating revenues two times greater than the other despite selling the same product. Here comes the role of customers.
The growth of a business largely depends on customers. If your customers are satisfied and happy with your product or service, they will continue sticking to you. It means revenues will grow faster.
The first goal of a business should be to deliver more than expected. You may have customers unhappy with your service, but your most unhappy customers are a good source of learning. Try to find out why they are dissatisfied, and what you can do to blow them away.
How is your product different from your competitors?
Do you provide value to your customers? In addition to providing a solution to their current problems, you need to ensure that your product is offering something unique and different from existing competitors.
Why will people buy a product from you if they can get that from your competitors? They trust them more than you. They will naturally choose them over you. Your business needs to compete against them.
Even though you are selling the same product or service, but you can add a few unique features to it. An ordinary product with advanced features becomes extraordinary. As long as your product or service holds a candle to others, your business will never stop growing.
Do you have an appetite for risk?
If you want to grow, you need to look for the greatest opportunities. You cannot afford to sit idle and become complacent with your current condition. You need to identify opportunities for investments. If it seems good for your business growth, do not let it go. However, make sure that you calculate your risk-bearing capacity.
Is your credit profile good?
When it comes to seeking funds from lenders, they will evaluate your personal as well as business credit file. Of course, they want their money back on time, and if you have been paying back your lenders on time, your business will be considered growing and thriving.
Make sure that you pay off money on time. The fewer the defaults, the better it is. If your credit rating is not good, try to take out short-term loans like 1000 pound loans to build your credit rating. You will pay back the money in fixed instalments, and your credit score will go up if you make payments on time.
If you want to take stock of the growth of your business, you should ask yourself the questions mentioned above. Evaluate your current condition to determine you do not lack anywhere.
Description: The poor growth of business leads to bad effects in the long run. This blog discusses a few questions that will help you determine if it is growing.