10 smart ways to grow your business in a lean year

Analysts are predicting that the UK economy will ease its way out of recession during 2010, so the New Year is an ideal time to start preparing for the upturn. Follow these steps to develop your business this year:

1. Review your business plan. Constant assessment of your approach can help you make the most of new market opportunities. Ask yourself where you want to be in three- to five-years' time and how you can get there. Communicate your strategy to staff - a Government survey found that only a quarter of employees understand their firm's goals for 2010.

2. Refresh your offer. Make sure your products and services are still fit for your market. Look at your industry and ask what has changed during the downturn. Think about expanding your offer to meet fresh or complementary needs and to keep ahead of your competitors. Contact the Business Information Service to obtain market research on your industry or to request a press or article search on your competitors.

3. Maintain your cashflow. Solid finances underpin healthy growth. Update cashflow forecasts and speak to your bank early if you need funds. Accessing bank finance may not be as hard as you expect, as the Government recently extended the Enterprise Finance Guarantee (EFG) scheme. Receive free and independent advice on raising finance by contacting the Directors' Advisory Service.

4. Earn more from existing sales. Focus on selling more to existing high-value clients before investing in finding new customers it is more cost-effective. Find out what related products or services your customers need; if you can't provide them, refer clients to other suppliers.

5. Target new customers. Relying on existing customers or one or two big clients is risky, so expand your customer base. Set monthly new sales targets and track progress by logging all new sales calls and client meetings and reward staff for hitting targets. Keep abreast of contracts in your sector ? for public sector contracts, check the Supply2.gov.uk website. Obtain targeted direct marketing lists in UK and Europe through MarketingFile.com

6. Open up new channels. Most businesses focus on just one or two sales channels but multiplying your routes to market could reap huge rewards. Sell online if you can, go to trade fairs if appropriate and consider who else could sell your products ? existing clients, suppliers, distributors or even businesses with a complementary offer. Contact the Directors' Advisory Service for specialist guidance on your marketing and sales strategy.

7. Be lean and efficient. A cost-conscious mindset will boost your bottom line in the upturn and release resources to plough into growth. Carry out a thorough audit of your overheads; monitor utility bills, shed underperforming suppliers, drop unprofitable product lines and reduce unnecessary staff costs.


8. Promote your business online. Social media marketing will very likely become mainstream in the small business sector in 2010. When investing time and money in the likes of Twitter or LinkedIn, however, follow a strategy. There is no "one-size fits all" approach, so make sure what you are doing works ? for example, by using web analytics. Previous hot topic - Website analysis to meet customer needs.

9. Reinvigorate your outlook - and build new relationships. Even the most committed business owner can become jaded, so make an effort to build new connections with people who can freshen up your thinking or help your business grow. Think about mentors, consultants, new recruits and businesses to form partnerships with. Use on- and offline networks to meet them. IoD Online Networking Group.

10. Tune into new trends. As the economy picks up, keep your ear to the ground to see what trends you can exploit in your market. Speak to your customers to see how their needs are changing, as well as reading industry news and networking to stay informed.

Article taken from http://www.iod.com/