Get support to grow strategically
Business owners and sole traders who strategically grow:
- increase their profits and sales
- stay relevant
- perform better than their competitors
- have a better chance of surviving in the long run.
There are several government-supported programmes and funding opportunities to help you grow your business.
Planning to grow
Wherever you grow, focus on what you are trying to achieve and why.
Set goals that are:
- specific – define exactly what you want to accomplish
- measurable – make sure you can track progress and measure outcomes
- achievable – create a plan with a reasonable chance of success
- relevant – check your goals align with your overall strategy
- time-limited – work towards a deadline to keep on track and focused.
Consider the following:
- why you want to expand, and which market is right for your product
- which place works best for your other Ps (product, price and promotion), and how you’ll adjust your marketing mix
- how you’ll finance your growth
- if you can find advisors who understand the market and culture
- if you’ll be able to hire the staff you need.
Where to grow
Growing in New Zealand
You could grow domestically – for example, you could open another shop in a different location.
Growing in the same country means you already know the culture, language and laws. You’ll be in the same time zone, so you don’t have to think about time differences when you arrange meetings.
Draw on government funds and support for businesses that expand into different regions of the country.
Growing overseas
Growing internationally is more challenging. You have to consider:
- different cultures, languages, laws and regulations
- currency fluctuations and exchange rates when you set your prices.
Do your research and be prepared to learn and adjust.
Growth strategies
Identify the strategies and tactics you can use to achieve your goals.
Each has its own potential risks and rewards. Work with advisors to choose which is the most appropriate for you, and continue to do so as you grow. A support network will help you achieve better results.
Product development
Creating new products and services for existing markets.
Market penetration
Selling more existing products and services to existing markets.
Market development
Selling existing products and services to new markets, for example another part of New Zealand or exporting.
Diversification
Developing new products and services for new markets, for example another part of New Zealand or overseas.
Challenges of growth
As you grow your business, you might face some challenges. These include:
- increased costs and overheads
- a significant change in your current systems and structures, or a need to start new systems and structures
- competing priorities
- a shift in your company culture
- realising you need to hire new people, or train existing staff to meet growing demands.
While you may think that the hard work you put in upfront will have few immediate results, if you keep on course, you’ll build up momentum over time.
Common mistakes
Avoid making these common mistakes.
- Not seeking external advice – work with trusted advisors to make sure your plans are realistic and achievable.
- Quickly hiring new staff to deal with an increased workload – first weigh up the long-term scope and cost of any new roles, and only hire people who are right for the business.
- Not measuring your progress – decide what to measure, and how to measure it. This will help you see when things are working, and when you might need to make changes.
- Not being ready and willing to scrap your agenda when things aren’t going according to plan.
- Underestimating the costs of growth – think about your finances, but also reflect on how to effectively use your time and headspace.
Learn more about