Business growth brings its own set of challenges. Increased revenue can also mean more complexity and additional challenges, many of which can be managed effectively through effective planning. Here are a few things you may want to think about before committing to a new product, machine or location.
1. Are You a Good Manager?
If management isn’t your strong suit and you are planning to take on additional staff, what’s your strategy? In the beauty industry, many of us have made the transition from working in someone else’s business to working in our own, but taking on staff means adding another list of tasks to your already busy day.
Perhaps there is someone already working in the business who has the natural aptitude or previous experience required to manage other people. If not, it might be wise to spend some time thinking about the type of person you would be able to work with effectively, before you hire them based purely on their professional attributes.
Even if you are a highly capable manager, this might be an opportunity to think about whether leading others is the best, or most effective use of your time.
2. Do You Have a Financial Plan?
Growing your business without financial gain is pointless. After all, why work harder, add additional services and make your life more complicated without some return?
But how much return is acceptable?
A good financial plan will take into account the hours in a day, overheads such as equipment and rent, and any other costs applicable to the new product or treatment. Start with the best-case scenario: if you have no downtime, what profit will you see? Is that enough?
Of course, it’s unlikely you will experience no downtime, but at least you have a benchmark to work off. You can also take this chance to analyse your other products and work out where you are making money and where you could potentially reduce overheads by optimising your offerings.
3. Why Did You Get Into Business In The First Place?
Freedom? Fun? Money? Time?
Growing a business can be very exciting, but does it fit with how you want your day-to-day life to look? Plenty of business owners experience enviable growth only to find that the busyness and challenges that arise as a result are entirely at odds with the lifestyle they were seeking.
Of course, with proper planning, you can have the best of both worlds. Be realistic about what your business will look like, and the nature of the complexities that will be a natural by-product of growth. Talk to your advisers, sake the time to plan, and don’t be surprised by changing circumstances.
4. What’s Next?
Growing your clinic will probably be one of the most rewarding experiences of your professional life. Your business is one of the few that directly enriches the lives of other people, and doing more of that can lead to wonderful things.
So, with a financial plan in place, and strategies to deal with the challenges brought on by growth, how will you benefit directly? Having a personal lifestyle plan attached to your business is a powerful motivator, and fulfilling it is a fantastic feeling.
Good luck on your growth journey.