The growth of your business is an item that has to be a priority on your company’s agenda these days: due to the increasing amount of digitalization, many companies can only survive by expanding.
Digitalization is not really a goal in itself. But, as a business owner, you definitely need to keep up with what the future demands, because if you don’t do that, you run the chance of being left behind.
What do we mean by digitalization?
Digitalization is converting data (statistics) from an analogue to a digital data medium. Through digitalization, statistics stored in the ‘old’ way, which a computer can do nothing with – such as documents, books, recorded material, photos and films – are converted into data that can be processed and edited by computers.
Examples of this are: scanning photos and documents and digitally recording sound.
This is very nice in theory, but how do I apply this to my business?
We will explain this by giving 3 possible ways in which you can start to expand your business through digitalization:
1. Aggregation within your company.
Using specific criteria, combine individual items into one collection, with the aim of being able to consider this collection as a whole for certain considerations or planning functions: in other words, making your business processes more efficient.
2. Maintain your existing customers and find new customers by offering a wider product range (product diversification).
When purchasing, you can demand sharper pricing through buying in bulk.
3. Integrating data analysis into your business operation.
By analysing existing data well, it gives you the potential to be able to match your supply and demand better.
This in turn can have a positive effect on your purchasing, distribution and sales procedures.
For many small-to-medium sized businesses it is difficult to be able to make good use of the above-mentioned options.
It can take up a lot of time, there is often a lack of in-house knowledge, and if specialized IT staff have to be taken on, that can also cost a lot of money.
The effect of growth on your financial requirements.
Growth doesn’t only have an effect on your turnover, most entrepreneurs also feel it in their working capital. Growth has to be financed, because in order to grow, it often means you first have to spend more: you may have to buy in more stock, invest more, or you may need additional staff in order to be able to serve your customers.
In that case, you will be incurring costs before you start to reap the benefits.
Financing this will, in the first instance, be at the expense of the cash available to you on your current account and for many companies this often means that they then have to maximize their payment terms with their creditors. If there is structural growth or if your company continues growing, extra finance is often needed in order to achieve this accelerating growth without any worries.
Would you like to know more about what Togather is able to offer so you can speed up your growth? Then get in touch with us and we will be happy to help.