You have to spend money to make money. But how do you know when your business is ready to invest in future growth? You’ll know you’re on the right path when you’ve completed the following tasks:
Investments in human capital and research and development can increase both productivity and growth. Measuring and rewarding productivity gains can also benefit your business.
Plan for the Short, Mid, and Long Term
Many businesses are adept at planning for the short and long term. However, to promote sustainable growth, you must also be prepared for the midterm as well. Today’s market changes faster than any before, and businesses must keep pace by anticipating needs and producing profitable products and services.
By investing in emerging business lines, you can ward off competitors that may otherwise capture new markets.
Make a plan for how you will enter new markets and promote new products or services to your existing customers. Analyze your data to segment customers and identify what they need. You may also refocus your sales team to emphasize group performance over individual performance.
Boost Value and Volume
Want to increase profitability? It’s not all about cutting costs. Companies may want to compete on value rather than price and drive revenue through higher prices or volume.