6 Principles For Making New Growth Initiatives
Growth opportunities are different from your core business and therefore require different skills and an understanding of your customer’s needs. They also require commitment. Below are 6 things that you should consider when making new growth initiatives work within your business.
1) Make operational excellence in the core business your cornerstone
Having an efficient and profitable core business that is based on a good and high quality product or service gives you the ability to go that extra mile when it comes to solving your customers problems, and gives you the funds that you need to support business growth. Be sure to not put all your focus however at the core of your business to the point it becomes an excuse to not focus on new growth.
2) Treat growth as a discipline to be pursued at all levels throughout the company
Every manager within an organisation should have growth as one of their top priorities. Managing growth in a business can be a scary thought for some people and can be quite demanding on time. Distribute responsibility and growth throughout your business in order for others to benefit and grow from it.
3) Develop many small, maverick ideas, not a few large ones
Have ideas that you are able to offer to your customers. Some ideas may not be rolled out as they may not be able to justify the time and the money required for them to become offerings. By looking at the industry you are in and what both your markets and customers need, you can gain a sense of new growth opportunities.
4) Shift resources from product and technology innovation to customer and business innovation
Growth is hard. There are no two ways about it. New growth initiatives are incredibly important and therefore require adequate resources allocated to them. Smaller business will not have the large amounts of funding that big, well-known companies will have for R&D, so managers should devote a small portion of their budget to customer innovation.
5) Organise to suit the needs of the new business as much as the core business
Companies spend considerable amounts of time on creating organisational structures, job titles and pay grades. By doing so they can better align their internal structure. Every business will have a different business structure to suits its needs, which are different from their core focus.
6) Use selective acquisitions and alliances to catalyse growth
Home grown resources are not always reliable within a business. This is also true when it comes to staff as tasks are given to those who have been known to preform well stretching them too thin with a large workload, or staff that are given a task with little to no knowledge on how to complete it. While it is important for a business to save money and use the resources that they have available, they can also look for people and assets available that may not be part of the core business.