This summer, we have been exploring all things business growth: team growth, personal growth, financing growth, leading growth, pitfalls of growth and growth stakeholders. This time we’re looking at the longer-term issues of growth – how to make it sustainable and how to measure it.

Business growth can take you by surprise and controlling it so that it doesn’t become your downfall is all-consuming and challenging. Maintaining a sustainable level of growth is the next level of challenge for business owners, ie. Creating the best value from the resources you have.

What is sustainable business growth?

Sustainable growth is the maximum rate achievable by utilising existing cash flow without increasing your debt. An increase in output inevitably leads to a demand for input (of materials or finance for instance), but successful companies manage to steadily grow without drowning in debt and suffering from inefficiencies and a reduction in quality.

What does success look like?

Businesses that manage their growth often share the same qualities, such as:

  • Drive: everyone in the company shares the same vision for success. There is an authentic sense of purpose where everyone is engaged and focussed on innovation and service.
  • Identity: a strong brand helps employees to develop loyal relationships with customers and a strong customer base helps to sustain consistent cash flow.
  • Efficiency: waste is the antithesis of sustainable growth and strategic planning is the best way to maintain efficient processes to remove sources of waste, staffing issues and errors.

Know your numbers

This is one of our key phrases at CRM – understanding your finances is the foundation of sustainable business growth and measuring your balance sheet, cash flow and profitability will form the basis of future investments and ultimately whether you can pay the bills.

You should be reviewing your cash flow monthly and annually to assess the difference between your projected and actual sales. Measuring your profitability will highlight areas for growth and underperforming parts of your business.

To help you understand your numbers and the other key aspects of business growth, CRM is delighted to launch its FREE Business MOT Service. This is ideal for existing clients and non-clients who would like to find out how ‘roadworthy’ their business is. Like a vehicle MOT, many businesses could run more smoothly with a few major or minor faults fixed.

By answering a few questions and spending a little time with a CRM professional, we assess the roadworthiness of your business and produce a simple report from which you can move forward with more detailed advice and a plan of action.

We are sure that the free CRM Business MOT will add value to your growing business, identifying areas that could be improved so that you can drive forward with confidence that you’re on the right road.

Don’t fail on the minor faults, get a free CRM Business MOT now! Call the friendly, approachable experts on 01865 379272.

Sage Accountant Partner Logoiris kashflowFreeagent