Business Structure
Updated : Apr 2023
Readying Your Business For Growth
You have been doing well with your business but are you sure you have, at the same time, prepared yourself or the business for growth?
Are you growing at the rate you should be?
Do you manage to do all the operations of business in time not to mention the annual filings?
Even if you have been doing well so far, I suggest you to see if you are taking care of the following points while calculating how the business is growing:
Return On Investment
Return on Investment or ROI as the name suggests, is the amount that business earns in a financial year. To calculate an effective /more accurate ROI, you must take into account Interest on Capital, Personal Salaries and Expenses of Personal Nature etc. This will give you a more accurate picture of your business.
Growth As Per Industry Standards
By studying the market you are in (both geography and product wise), you will have an idea of year on year growth (YoY) of other businesses in the same and you can compare them with yours.
for example, the standard growth rate for retail businesses in Australia might be 10 percent.
If you are above the standard, you are doing well but beware in you are lagging behind as that means your competitors are moving ahead.
for example, the standard growth rate for retail businesses in Australia might be 10 percent.
If you are above the standard, you are doing well but beware in you are lagging behind as that means your competitors are moving ahead.
Timely Bookkeeping/Filing
Maintaining your books in order year round ensures that you have an accurate picture of your business available to you whenever you need. No matter if you are a manufacturer or a service provider, timely bookkeeping will ensure that you have all the necessary information ready both for yourselves as well as the local taxation authorities.
Budgeting and Forecasting
You should always plan a budget for various activities at the beginning of every financial year based on your present growth. This will also give you a chance to analyse how well you have done in the previous year .Once you have decided on that, keep a close eye on whether you are close to the budgeted lines.
Have a Good Marketing Budget
No matter how well you are doing, you must always have a good budget for your marketing activities. This will not only re-market your image to your existing customers but also help in getting new ones. Analyze all the mediums available and select the best, based on your needs. Like for retailers facebook might be a good medium to market but not for any b2b business (unless they are looking to create/expand brand awareness). Also, review once in a while , what worked, what not and what are the fields you should work upon.
Expand
Not only expansion helps in increasing revenue, it helps you keep afloat in the long run. You cannot just keep the same level of growth nor can you afford the risk of depending on a few fixed clients. The key for growth/survival for any business in long run is to expand and bring down costs and leverage the same to the customer.
Keep Customers Happy
If your customers are happy, you can proudly say “the world revolves around you”, you have hit the bull’s eye