Global research conducted by IDG released a report last year that mid-market companies with improved data accessibility, usability and intelligence can expect a gain of up to 35% more in incremental revenue year over year. The results are similar for SME's.
Further, growth isn't an accidental occurrence. It’s the consequence of dedicated and disciplined focus on core dynamics that drive your business forward.
Businesses that grow face specific challenges to effectively manage and realize growth opportunities into bottom line results. Here are the big three that surface most often in successful businesses:
1. Cash Flow Control: Growth often means cash flow pain before gain. Additional sales orders create cash flow burden in supplier material purchasers and labor. Capex funding can also often be required to continually scale your business. Start every day with your net cash position and a rolling 13 week forecast. Not by cost intensive admin staff crunching spreadsheets but by automated processes from your existing investment in your ERP solution that deliver on any device, anywhere, anytime.
2. Cost Management: As soon as you begin to grow, so do unexpected costs. Requisitions for new laptops, motor vehicles, salary reviews seem to arrive frequently and often side step approval processors or approval takes too long resulting in lost sale opportunities. Get in place cloud automated purchasing approval systems as soon as you can. Automate and direct purchase requests to the right person based on team, purchase amount threshold or item. Follow up with Purchase to Payment (P2P) automation. PDF emailed accounts payable invoices don’t need to be printed, processed, and filed. Let theP2P system collect the PDF attachment straight from your accounts mailbox, pass through the approval processes with email electronic signatures, and create the open payable item in your ERP or match an open PO. Your admin costs don't need to increase with growth. Use the business growth opportunity to invest in systems that reduce unnecessary admin labor cost and increase efficiency where it counts.
3. Margin Analysis: When you are growing you have to know every day where your growth is coming from. Don’t let the fast facts on gross margin and contribution that matter get diluted by clumsy rolled up financial reports. Know the analytical dimensions of your business and start the day with the facts. Which region is contributing strongly? What product group is performing, by both margin and volume? Which sales person has a pipeline and who doesn’t?