We use cookies on this website to ensure the best user experience for yourself.
If you want to learn more about how cookies affect you, click here.

 

Pegasus Blog

5 tips to grow your business

DATE

May 22, 2014

To grow your business there are some fundamental principles to remember. Let’s go over our top 5:

1. Know your customers

Did you know it costs 7 times more to acquire a new customer than it does to keep an existing one? Knowing your customers is essential for customer retention – who are your most profitable customers and who are your advocates? Identifying these will help you target your marketing activity to maximise value.

However it’s important that you don’t hinder growth by ignoring your disgruntled customers. It used to be said that one unhappy customer would tell 10 people. Since the rise of social media, that figure has long since changed and the opportunities to express negativity are now endless.

2. Get your cash flow in order

To drive your business forward it’s essential that you’re able to generate enough cash to pay your liabilities each month.

According to research, 46% of UK businesses have experienced cash flow difficulties in the past 12 months, which will certainly impact any plans for growth. There are some core ways you can keep your cash flow in order. Monitor your cash flow regularly and in real time so you can identify where setbacks might occur and prepare for them early. It’s also important to know the financial history of your large customers and highlight poor paying customers. It might be worth reviewing your credit control process or introducing longer credit terms in a bid to reduce customer debt.

3. Conduct business analysis wisely

Knowing your business really is fundamental if you want to grow your business, and conducting regular analysis is vital.

Keeping a handle on sales performance, stock levels and key performance indicators in real time will help you make the right decisions at the right time. You’ll avoid costly mistakes and be able to develop goals and benchmark performance for the future.

Don’t forget to regularly analyse your market too. If you want to grow your business it’s important to stay up-to-date with changes in the market. Know you strengths and weaknesses and keep an eye on emerging opportunities.

4. Keep on top of your stock

For many companies, stock is the life blood of the business. Not enough stock can cause problems satisfying demand and slow down the production process, whereas too much stock can tie up funds and create wastage. For companies operating in the wholesale, retail and manufacturing industries, stock management is as important as cash flow, therefore it’s vital to maintain reasonable levels if you’re looking to grow.

Know your industry and identify where peaks and troughs in demand may occur, and invest in a stock management system so you can set alerts to help you manage your stock levels more efficiently.

5. Don’t stand still

In today’s fast-paced business environment, can you afford to stand still as your competitors innovate and find new ways to exploit the market?

To grow your business, you need to be prepared to evolve. Have you thought about extending your product offering, widening your product availability or entering new, unsaturated or niche markets?

A good place to start is your customers. Find out what they want and areas where you could improve your existing product or service offering. Listen to their feedback and deliver or be prepared to lose them to your competitors.