Thinking Big Is the First Step Toward Growing Your Business
Nearly every business owner wants to grow his or her company.
But with growth comes risk, and that can keep you from taking the steps necessary to move forward. Yet if you don’t think big and come up with a long-term strategic plan, you’ll likely continue to spin your wheels.
Eyes on Profits and Value
Public companies answer to investors who consider earnings per share and stock price to be key indicators of their return on investment. Maximizing earnings is a short-term goal, but building value requires a long-term focus.
Many small to midsize businesses, however, have only their ownership’s vision to motivate them. You also may have to operate much leaner, with more limited staff and overhead. In doing so, you may sacrifice value-building opportunities.
For example, a company that fails to invest in marketing may lose market share to a competitor that aggressively advertises and offers promotions. Or a business that hires managers only from within or chooses candidates based primarily on minimizing salary expense may lose out on the professional expertise that comes with a more seasoned management team.
Systematic, Formal Planning
Some companies may be able to run “lean and mean” for a while. But, eventually, most businesses need to grow. And a reasonably ambitious, long-term strategic plan is the first step. It will allow you to communicate a nuanced, specific vision for growth down the organizational chart.
Planning should extend to employees, too. What’s each worker’s expected role in your strategic vision? This is why annual performance reviews are so critical. They’ll help you gauge whether each employee is meeting or exceeding management’s expectations — or whether he or she is truly contributing to your long-term plan.