With more time spent on gadgets and a rise in automation, it is little surprise that the number of tech businesses is growing. In fact, in the UK, tech and digital industries are currently growing twice as fast as the rest of the economy, contributing almost £100bn per year. However, for tech businesses, growing too fast can cause instability.
While more and more tech companies are cutting a larger share of the market by employing latest technologies, in order to thrive, however, business owners must pay attention to daily tasks and operation when dealing with expansion. Here are the areas to consider when creating a self-sustaining, growing company.
As your business grows from a solo-venture or small team to a larger business, job roles may need to be redefined. This means that your staff may require training. Providing training and development will ensure that your staff possesses the correct knowledge, are informed of processes and can ensure that the standard of goods or services does not drop during expansion.
Business growth requires a healthy cash flow – this is particularly true for a tech business where growth can involve expensive equipment or software. As such, it is essential to get your tech company’s finances in order. Do this by creating regular financial statements, assessing the areas you can make savings and evaluating company cashflow.
Any business owner knows that an effective marketing strategy is essential to growth. As such, assess your current marketing plan. Ask yourself: Which areas have been most successful? Where should you cut or increase spend? And should you invest in new or old-school marketing? Honing your marketing strategy could help your tech company to grow at a sustainable rate.
Growing a company can be risky. If too fast, it can lead to failure, but if managed well, it can take a tech business from strength to strength. As such, you must alleviate risk.
You could do this by outsourcing accounting or bringing in an external auditor from the likes of RSM. Or by diversifying revenue and ensuring that the majority of your income does not come from the minority of your clients or customers.
When you launched your tech startup, you may have offered goods or services at a low price point. However, as your company grows, it is important to reassess. Doing so will allow you to boost profit margins, increasing cash flow. Upping prices will also help to avoid flooding your company with orders, thus preventing unsustainable growth.
Tech companies are important to the UK economy, with an industry that is booming. However, it is important not to grow too quickly. Work on these areas to make your tech business more sustainable.