For any entrepreneur, growth is synonymous with success. However, it comes to shake up the organization of a society. Let’s look together at how to take care of its long-term growth!
At the time of creating his company, to start the engine, it is essential for the manager to set himself growth objectives both in terms of profitability and the development of his offer as well as his positioning in a market. Indeed, when they are clearly expressed, these growth objectives make it possible to draw up commercial strategies to be put in place and to recruit suitable profiles for one’s company.
Once the first goals have been achieved, the entrepreneur must face the upheavals brought about by growth. It is a key moment in the life cycle of a company which must adapt to the increase in demand by integrating new recruits.
Business growth: what are the best strategies to adopt?
In a troubled economic context, giving yourself the means to grow your business is more important than ever for any business leader. In addition, the data is optimistic: according to the BPI, in 2022, VSEs-SMEs anticipate a 7% growth in their turnover in France (much better than the 3% estimated last May). As an entrepreneur whose business is already starting to grow and scale, it’s up to you to utilize the resources, growth strategies, and digital tools at your disposal.
Internal and external growth: how to differentiate them?
Before getting to the heart of the matter with concrete techniques on growth strategies, it is important to understand what is behind the word growth. Within the framework of a company, it is divided into two parts:
The internal (or organic) growth of the company
The internal growth of a company consists in betting on its own resources, funds, capacities and skills. It is for example possible for the manager to develop his organic growth by hiring staff, creating a new department, or buying hardware and software. It is on this type of internal or organic growth that it is possible to capitalize initially as an individual entrepreneur or at the head of a small or medium-sized business.
The external growth (or build up) of the company
The external growth of a company corresponds to the external resources that it can acquire, by modifying its legal form for example, or by associating with other companies. through a merger, acquisition, contribution of assets or otherwise. This can allow the leader to integrate a market or even, in the long term, to open up internationally.
Opt for the appropriate legal form
The legal form chosen for your activity governs your responsibilities in terms of tax declarations, accounting and social rights. Thus, it is sometimes necessary for the leader to change his legal form to be able to delegate, recruit, or even join forces by bringing in new capital and thus achieve his growth objectives. Just as certain legal forms can facilitate the granting of bank credit or the raising of funds.
If you are the manager of a SASU or EURL, and you want to join forces to grow your company’s activity, then you can evolve into a multi-person company such as a SARL or SAS.
If you are a micro-entrepreneur , and wish to take out a loan for your activity without necessarily associating yourself, then you can opt for the SASU and the EURL which are more reassuring for the banks because their tax and accounting obligations are more rigorous.
Streamline the customer relationship
Logically, the growth of a company is correlated with the sales of goods or services. And for sales to increase, it is necessary for the entrepreneur to target and retain customers. To do this, you must prospect and analyze customer data.
It is of course recommended to use a CRM software (Customer relationship management) which makes it possible to follow the customer relationship thanks to the following functionalities:
The sending of personalized e-mails according to the situation: relaunch of a contact who abandons a basket or sending of promotion to another who subscribes to your newsletter.
CRM Magazine recently discovered that 91% of companies with 10 or more employees currently use a CRM tool to develop their external growth. It allows you to remain competitive in the current landscape and, by improving your productivity, it boosts growth in parallel.
Manage your cash flow
In addition to taking care of your customers, you must also pamper your company’s cash flow: it is the lifeblood of your business. An optimized cash flow makes it possible to reassure partners, facilitate professional bank loans, and generally be more credible on a market.
anticipate cash inflows and outflows (and inventory movements depending on the activity);
keep a reserve for more difficult periods in order to settle any supplier debts, pay taxes, etc. ;
know how to finance a cash dip by adjusting the payment period for invoices, by increasing prices, or by applying for assistance from the tax authorities.
As with a CRM, as a business manager, you can also equip yourself with a digital solution that manages your cash flow for you. The overall productivity of the company is improved, to the benefit of growth!
Adapt workspace and materials
Choosing an adequate workspace with equipment is important for the growth of your company, whether you are a solo entrepreneur or the head of a VSE / SME. It is therefore an investment that can pay off quickly.
To grow a start-up, for example, as a manager, you can choose to integrate an incubator or rent coworking offices. This type of solution allows you to create a network by surrounding yourself with other entrepreneurs or freelancers. Moreover, renting offices can be interesting and comfortable as soon as your activity and your team grow.