In the business world, rapid growth is a strategy that needs to be well thought out and fast. For some small to medium-sized businesses the dream of eventually becoming an industry giant is more than just a dream. The ultimate goal is to have significant pricing power, strong brand awareness, and a nearly unlimited supply of new orders. However, that growth comes at a cost – literally. All the extra finance and labor resources are a need to manage that kind of growth. That’s why many fast-growing SMBs are now embracing business management software to help them manage that boost.
Prepare the Foundation for Future Growth
Is your business unprepared for a rapid sales maturation? When you have a bestselling product, you might find it hard to keep that product in stock. If every time you receive a new shipment it sells out quickly the result can be devastating. Or, you might not be ready for all the extra resources you need to deal with calls, inquiries, and requests. Working overtime might be necessary, but can your SMB afford to live in a perpetual state of overtime? Would you want your employees to work nights, weekends, and holidays to keep up with customer orders? The consequences of such a scenario would hit your payroll pretty hard. Implementing a business management software provides better processes that secure a strong foundation for the future of your bussiness.
Business management software can have an impact in several different ways. First, the process of automating much of your inventory or logistics will free up essential resources, like employee hours. Secondly, you gain the ability to change production planning and delivery schedules regularly. The results will make your company much more proactive rather than just reactive to changing market conditions.
The very best business management software will help scale your business. What this means, in practical terms, is that you won’t “outgrow” your business software as soon as you install it. As the complexities of your business increase, features in your business software that help you manage this evolution are needed. Many software packages are “one-size-fits-all” and don’t allow you to scale up as your business become more complex.
You need a solution that you can use three months from now and three years from now. Making sure that you aren’t installing, uninstalling, and re-installing new software every time you hit a milestone is integral to your growth strategy.
Flexibility & Adaptability
Right now, would your SMB be able to adjust if a supplier suddenly could not meet its obligations? Could you manage the situation if consumer demand for a product suddenly takes off overnight? What if external market factors (such as broader changes, local or national economic changes) suddenly turn for (or against) you?
If you are still managing your business with paperwork, spreadsheets, and calculators, you would have a tough time adjusting to market-changing factors. The good news is a reliable business management software helps you to respond and adapt to these changes. A robust solution will have business intelligence reporting capabilities that can help you spot new trends in advance. For example, when a supplier gradually cuts back on the volume of product, you can spot this trend and be proactive instead of reactive.
In another example, powerful business management software can help you develop intelligent solutions to common problems. Like, re-routing deliveries and supplies. The result is you might be able to avoid more considerable bottlenecks within your organization.
One component in business growth is the overseeing of productivity. Examining the past two decades, one of the biggest drivers of business growth throughout North America has been technology implementation. The pace of technological change is only increasing due to the demand in expanding the company’s overall production.
The first step in leveraging these gains is to extend a business software solution that allows more efficiency in your productivity. The result is more flexibility with things like departments and multi-location. Or functionalities like knitting units together or margin price adjustments on the fly.
Finding the Right Growth Opportunities
Not all growth opportunities are created alike. Some growth opportunities – such as distributing a product via new channels and platforms – might make sense for your business. However, other growth opportunities might lead to many problems for your business if you lack the resources or the ability to allocate them appropriately. For that reason, many SMB owners are now turning to ERPs. Quickly, business owners see the ROI from a well implemented solution.
With a bit of scenario testing, you can stress-test various business strategies and find out which method is optimal. For example, is it better to sell a higher volume of a low-margin product or a lower volume of a high-margin product? With business management software, you have the data, insights, and information to answer these questions in a way that makes sense for your business.
Key Growth Considerations to Keep in Mind
If you are preparing for rapid growth and significant changes in volume, you will want an integrated business solution to help you quickly include new functions and departments; deal with sudden or fluctuating demand, and provide transparency into crucial business processes. Of course, you will need a business management software solution that provides accurate, real-time data for optimal decision-making.
Reach Your True Growth Potential
In conclusion, business management software is all about helping your SMB reach its true growth potential. Instead of giving up new opportunities, you can quickly scale into future growth. You can do so in a natural, organic manner that leaves your company plenty of ability to navigate new market twists and turns.