Building sustainable business growth requires strategies. The great truth is this: business growth can slow down or decline sharply due to various internal and external factors. Faced with the growing post-pandemic crisis, inflation, economic decline, and stock crash, company founders must find new and old ways to keep their businesses growing.Read more about How ToIt’s times like these that millions of businesses pack up. In this article, I discuss six strategic ways business founders and executives can ensure sustainable business growth.
Integrate Sustainable Success Policies
While it is good to enjoy massive and rapid growth as a businessperson, uncontrolled growth can be counterproductive. Many companies have shut down because they were overwhelmed by business success. For example, companies who struggle to keep up with demands, suffer problems of poor distribution and supply chain which can irritate customers. More so, when there are no sustainable success and growth policies, you might find businesses deviating from the core principles and compromises might erupt. Companies with no sustainable growth policies do not keep up with standards because of the lack of long-term policies that sustain growth
Maintain Cash Reserves
Another way to ensure sustainable growth is to have cash reserves which will prove useful during downturns. Having cash reserves begins by having a separate account where emergency cash is stored.Sign up for the Connect Nigeria daily newsletterThey are for rainy days. Furthermore, to ensure that the cash reserves culture is sustainable in your business, it is important to create and adhere to budgets, set monthly targets, and monitor cash flow while eliminating unnecessary expenditures.
Reinvest In Your Business
To make money, you have to spend money. This aphorism is true. Successful businesses that enjoy long-term success growth reinvest in their businesses. They set aside cash for reinvestment. Therefore, if you want to ensure sustainable growth in your business, you must reinvest a large portion of your revenue into your business. This comes after you have paid your workers and settled the necessary utility bills. There are various ways to reinvest in your business. You can use the remaining cash to get more equipment that will facilitate operations or get another outlet or improve business technology or retrain staff.
Control Costs And Debt
Sustainable businesses by all means manage their costs and avoid debts. You can do this by cutting costs of production by getting the things that are essential to business growth and avoiding tools and equipment that do not directly and imminently help the business. Also, in managing debt, business owners must ensure that debts are paid from the profit accrued for borrowed finances. Debts are good when they are used to leverage an opportunity.Register to attend the Connect Nigeria Business MixerFor instance, using debt to get more tools and equipment to meet the rising customer demands is good debt, because profit is guaranteed and debt can be repaid.
On The Supply Chain
Leading companies consider owning the supply chain as a way of ensuring sustainable growth. This method is known as vertical integration. For instance, a car manufacturer can own a warehouse or car dealership where buyers can directly get their brand. Through this method, they are controlling the retail market. Therefore, to own a sustainable business, controlling the distribution and supply chain by stationing your retail outlets is something to consider. It is considered expensive to set up, but it guarantees sustainable growth.
Consider A Captive Insurance Company
Every business is risky, hence, when risk is not managed, business growth can be affected negatively. Therefore, to ensure sustainable business growth, it is important to consider a captive insurance company that can help you write broad coverage for losses, including policies with few policy exclusions. With captives, your business can also ensure gaps in commercial policies.Featured Image Source: FreepikGot a suggestion? Contact us: editor@connectnigeria.com
