In my experience, wider communication is often over-looked. Your best individuals want to be part of the journey; but modern technology has yet to create the art of mind-reading! Engaging with as many individuals as possible within your business so they understand your vision and key strategies will pay dividends.
Does your business have the right individuals on the bus?
The right mix of skills and experience is key to growing your business. The skills required to grow a business are not necessarily the same as those required for a 'hold and maintain' strategy. Entrepreneurs often find the transition to CEO difficult - but that is another story!
Incentivising key individuals is important; however, incentivising non-family or non-founding members can be a challenge. You could consider Enterprise Management Incentives (EMI) or Company Share Option Plans, but the big drawback is the difficulty in securing Entrepreneurs Relief (ER) for the recipient of the options. Some alternatives are so-called 'growth shares' or creating a Limited Liability Partnership (LLP) structure, both of which protect the benefits of ER provided the conditions are satisfied.
Does your business focus on new products into existing markets or existing products into new markets?
The former is often the temptation; but evidence suggests the latter may be more successful. That said the one constant is the need to keep asking whether your product or service is still relevant to your actual and potential customers. Here the recent increase in the Research & Development tax credit for small companies to 225%, and the long awaited Patent Box tax regime, should encourage the pursuit of innovation.
I hope this will provoke some debate. Many readers may be thinking there is an obvious omission: 'Do you have the financing in place to fund your growth'? This topic will be the subject of my next article.
To have a discussion about your growth plans, contact the author: David Anderson on 01242 234421 or firstname.lastname@example.org.