If you are a small business owner, you are unlikely to say “leave enough be done” without being in growth mode. It is often a prerequisite for advancing to the next stage of your business’ growth.
“Some business owners are surprised by this,” said Divya Demato (CEO and co-founder of GoodOps), a supply chain consultancy and sustainability consultant that helps companies plan their business strategies. They think that because they have had success with their design, why should they change. You may need to change your products, vendors, or partners to scale.
It is essential to be agile to grow businesses and businesses in today’s constantly changing business environment. It doesn’t matter if you need to adapt to new conditions like a global pandemic or make strategic adjustments to get to the next level. The key is to know what to do. Here are four steps small business leaders can take to improve their businesses and foster growth.
1. Restructure Your Team for Growth
Demato states, “Many times the core entrepreneurial team who got you here, some of them might not be able go on that journey to scale with you.”
This is a difficult task, especially for small companies. It’s all about evolving roles and the skills required for those roles. Many small companies need generalists, not specialists. They also require operations talent over managerial skills. Managers and specialists are required for larger companies. Businesses in growth mode need more specialists and managers. They need a unique combination of both.
Demato says, “You want people with both operational and entrepreneurial strengths. It’s a powerful combination.” It’s an exciting time for your business. Although you may not be very big, it’s not impossible to start a business.
Leaders of small businesses looking to grow their business should assess the strengths and skills of their employees to make sure they have the right people in the correct positions and determine if there are any talent gaps. This analysis will allow leaders to strategically recruit and retain talent to position their company for success. Although the talent market is tight, it’s possible to attract suitable candidates by offering them what they want now, including flexible work options and diverse teams, according to a 2024 study.
2. Use Customer Data to Leverage
You must know your business to grow your business. Data can reveal more about your business, products, and, most importantly, your customers than any other data.
Demato states, “If you are not collecting customer data immediately, you should.” Your business data can tell you how healthy your business is, but your consumer data can let you see what your customers are doing. This will help you adjust your products and marketing to increase sales.
Many retailers and startups use third-party marketplaces for visibility and reach to grow and find their customers. The compromise is that often the third party will end up owning customer data.
Some businesses might need to review their e-commerce strategies to understand the buyer better, how much they are willing to pay, and what other products they are interested in. Based on their resources, it might be time for them to start selling directly from their website.
They will also need to be able to interpret and use that data.
Demato says, “You need to have the right people in your team who can make sense of that data.”
3. Diversify your Supply Chain
Companies should learn from the challenges that all businesses face in a post-pandemic world. Businesses have learned to deal with uncertainty, which has allowed them to be more flexible and adopt new strategies and processes based on what they’ve learned. With the possibility of disruption, small businesses should also build out their supply chains.
Demato states, “Make sure you have the right levers to keep you in business when unforeseen circumstances arise.”
She suggests a two-pronged approach. Businesses can continue to operate even if one supplier is unavailable due to unexpected circumstances by having multiple vendors. She emphasizes the importance of building solid relationships with suppliers.
They are your true partners. They must buy into your vision. She suggests that you think about their needs and work with them to help them be stable and sustainable.” You want them to grow along with you.”
4. Embrace Sustainability
When it comes to sustainable sourcing, entrepreneurs have many options. Although environmentally friendly suppliers and practices might have been an expense burden in the past, based on her experience helping companies build sustainable supply chains, Demato has seen a shift.
She says that many great options are available, and they are very affordable. “The idea that sustainable operations are more costly is false.
Despite this, it is becoming more expensive to operate sustainably. Investors, talent, and consumers all consider Sustainability paramount. 70% of respondents to a survey in 2024 said that they only buy brands committed to their values. This shows that small businesses have huge market potential. Another 2024 study found that 85% of consumers have become more environmentally conscious and that 33% of Gen Z and Millennials are willing to pay a premium to purchase sustainable products.
Many small business owners find it easy to maintain sustainable operations. Choosing environmentally conscious suppliers, such as Office Depot, which offers products with environmental attributes like cleaners made with less harmful chemicals and recycled paper, is an excellent first step. Your team is an extension of your existing resources and partners. It is a great way to start your sustainability journey by tapping into their sustainability opportunities.
Customers who can authentically communicate their environmental efforts with companies have an advantage in attracting and keeping them. This relationship will allow you to show that your brand shares the same values as your customers and that you care about making an impact.
Growing does not necessarily mean operating a smaller business at a higher level. Small businesses can achieve their growth goals by partnering with the right people, processes, and partners.
