In this short article we discuss some of the challenges businesses face when attempting to grow their turnover and scale their structure. This is particularly appropriate in these times of unprecedented change across the globe.
This Blog also highlights some of the benefits of using a business growth consultant to help remedy these issues. A business growth consultant can help businesses navigate the market’s challenges and opportunities and help to steer a clear way forward to help business owners to build their companies practically and sustainably. Focusing on how they can practically and sustainably scale their operations.
These are some of the challenges growth and how they can be avoided.
The current business environment
In the last quarter of 2021, we saw a rise in vacancies, demonstrating that the economy was recovering after Covid. However small businesses faced significant recruitment challenges with some 41% reporting they were having filling roles.
Also, the price of materials increased significantly, with 10% of all businesses reporting a rise in the price of goods, with importing and logistics being particularly impacted. With a combination of Brexit, supply chain disruptions and the pandemic, many companies have suffered significant losses over the last few years. Of course puts a real strain on businesses attempting to grow under these conditions.
Yet, not all businesses were as severely hit by these disruptions. In fact, many flexible and adaptive companies saw a remarkable recovery, with some operating at pre-pandemic sales levels. By the first quarter of 2022, 80% of UK businesses had returned to trading. What’s more, 54.6% reported their trade levels were now stabilised or had increased. These positive signs within the UK economy, show that growth is still possible, and flexible and responsive firms can secure substantial increases in revenue and growth.
Meeting new consumer demands
Look at consumer demand trends in the UK, we can see increased sales in retail, household goods and ecommerce (as of Q1 2022). Interestingly, while the portion of online sales fell slightly, those with physical and online stores saw an 8% rise in sales.
This indicates a more significant trend happening across many industries, which is the development of omnichannel shopping and hybrid buying. According to research, 64% of customers now believe shopping experience is just as necessary as price when choosing a brand. Customer expectation has never been higher. Not only is the quality of a product important, but how it is purchased, delivered or collected factors highly into consumer considerations.
Businesses can create more value for their brand by embracing this trend. An omnichannel experience is achieved through online and physical stores by creating more buying options for customers. It’s crucial to embrace this trend rather than resist the demand to keep up with the competition.
Coping with competition
According to Brad Fager, research director at Garner, adding value to the customer experience is crucial for protecting and maintaining revenue.
“This is about understanding what customers expect from a business and identifying where value can be added. The market is highly competitive. To grow your business, you need to distinguish yourself from the competition. Many companies think about this in macro terms – creating new products and restructuring. Still, often small changes serve as the best growth strategy”.
Deloitte has reported that convenience, diversification and meaningful commitments to social and environmental issues will inform an essential aspect of consumer expectation.
In short, to ensure growth in the years to come, business owners will need to accommodate these trends to survive. The big question is how do you ensure your business is ‘fit for the future’? This is where Corporate Counsel can help with a comprehensive suite of services and techniques to plan and achieve high growth for your company. If you want to find out more check out our services.