Growth implementation

Assess your finances

When you’re planning for growth, finances are key. How much will it cost to grow in the way you want? Will you need funding? How can you predict which growth methods are likely to be profitable?

This section will help to assess your finances to understand what growth will cost and the return you might get.

Determine your break-even point

For this, you’ll first need to write down your expected costs. You may know some of these already. Estimate the rest – think about both fixed and variable costs.

Monitor and manage your cash flow

You’ll need to work out the level of sales or revenue you need to cover costs. Aim to fund your growth plan without overstretching your finances. This also helps you set realistic sales targets. Plus, you’ll start to see the potential impact of growth on your finances.

Having a healthy cash flow can help. Investors see it positively too. It shows you’re able to meet your short-term costs like paying bills, wages and suppliers. With a solid cash flow, you’ll be more able to cope with market changes.

To work out your cash flow, look at each of your growth methods in turn, and work out how much revenue you would need to cover your estimated costs.

Use these to decide if you can fund these through retained earnings. If not, you know you’ll need funding from other sources.

Update your growth plan

Here are a few things you should think about adding to your growth plan:

Laws and regulations

There may be new or different laws or regulations to follow as you grow your business. In this chapter, we’ll look at a few examples. First, let’s recap on the key differences between laws and regulations.

Laws:

• Are set by the government.
• Apply to all businesses in the country.
• Protect your business, your team and your customers.

Regulations:

• Can be sector-specific.
• Are set by government agencies or other organisations.
• Set standards and give you guidance.

Developing products or services

As you start to grow what you offer your customers, there are laws to protect both you and them.

Select the options that apply to you, to find out more.

How you connect with your users

As you grow your business, you’ll want to reach out to new and current customers. Any marketing materials you send them need to follow the Advertising Standards Authority (ASA) rules. Check their website for general and channel-specific advice.

If you’re using new tools to hold or use customer data, check you meet privacy and data protection laws. This also applies if you’re asking for or using this data in a new or different way.

The main UK law here is the Data Protection Act. The Information Commissioner’s Office (ICO) has resources to help you make sure you’re following this law. This includes a self-assessment tool and one for sole traders and small business owners.

If your growth plans mean you’ll be starting to process personal data, you need pay a fee to the ICO. Not sure if this fee applies to you? Use their online tool to find out.

Here are a few things to think about:

• Where you store data – Whether on a new device or in the cloud, make sure it’s secure.
• Who you share data with – Check security measures with any new suppliers or other third parties.
• How your team work with customer data – They may need training.

Using new digital tools

As you grow your digital toolset, think about how you and your team will use it.

This may mean you need to:

Think about accessibility

Are you building or updating apps or a website? Bear in mind that this needs to be accessible. The Equality Act covers both digital and physical access to services. This is quite high level and you may find the Web Content Accessibility Guidelines (WCAG) give more detail.

These guidelines apply to all UK public sector organisations. As a private business, you can use them to help make sure you’re meeting the Equality Act. Plus, they can help you reach a wider audience.

If you’re building a new website that sets cookies, the ICO have guidance on this.

Build your team

As your business grows, you may find you need more people to help out. If you’re a sole trader, how do you feel about this? It can be both exciting and daunting at the same time. Even if you already have others working with you, you’ll need to plan carefully as this team grows. So let’s start by looking at some of the key laws that apply here.

Recruitment and hiring

You need to do this fairly. When you write your job adverts, they mustn’t discriminate.

Make sure they don’t imply that any of these are barriers to the role:

• Age
• Race
• Gender
• Being married or in a civil partnership.
• Being pregnant or having children.
• Disability
• Religion
• Sexual orientation

The same is true in an interview. So you can’t ask whether someone is planning a family for instance. ACAS has help and advice on how to recruit fairly.

When you hire someone, they’ll have a contract of employment. You’ll also need to sort out PAYE, National Insurance and pension contributions. The GOV.UK site has a handy checklist to take you through the whole process.

Protecting your team

The law protects employees in various ways:

Why do you need to update HMRC?

The things you can do to grow your business can have tax implications, so it's important to let HM Revenue & Customs (HMRC) know. 

In this chapter, we'll equip you to understand the potential tax implications of your growth, so you know when you need to tell HMRC.

What do I need to tell HMRC?

Here are some examples of what you need to tell HMRC:

1. If you change the legal structure of your business.
2. If your rolling taxable turnover increases to over £90,000, as this is when you'll need to register for VAT. 
3. If changes need to be made to your personal details or the details of your business.

How do I update HMRC?

What leadership skills do you need?

As a business owner, leadership comes with the job. What you say and do influences those who work with you, every day. You want to get this right, but there isn’t just one ‘right way’ to lead.

There are many different leadership styles, but what works for someone else may not be right for you. The skills you need will depend on you, your business and the people who work for you. The goal is to strike a balance between informing, persuading and engaging others.

To start, look at what you want to achieve. The way you lead should align to your overall vision and growth goals. Keep this in mind as you work through our list of common leadership skills.

If you're looking to gain more leadership skills, supported by Skillsoft Percipio, we have extended our business offering by giving you free and exclusive access to a collection of their business and leadership training.

With hundreds of courses and learning paths to choose from, this offers you the chance to learn a broad range of business skills from product management to productivity and collaboration. To start your learning and boost your leadership skills, sign up on Skillsoft’s website today.

Be honest and open

Truthful and sincere communication helps to build trust. Own your mistakes. Acknowledge everyone’s contribution to successes. All these things show that you lead with integrity. When people see this, they’re more likely to trust you’re going to do the right thing for the business - and for them.

Delegate and empower

Recognise each person’s skills and strengths, and let them use these to help you reach your goals. Support and encourage your team to grow and prove their skills. When challenges arise, listen to their ideas and solutions.

The key to good delegation is giving each task to the most suitable person for it. Trust them to own the task and praise them for a job well done. When things don’t go to plan, be their mentor. Give expert advice to guide them towards better outcomes.

If you do this, your team will see that you trust them to take responsibility. This will help to reduce your own task list, too.

Delegation, step by step:

1. Decide what to delegate – Not every task will be suitable, so look at the tasks and see what you can give to others.
2. Assess your team’s strengths – Some in your team may be creative. Others may have technical skills. Match tasks to their skills and preferences to motivate them and help them succeed.
3. Explain the result you expect – Let people know what the result should look like and what you expect from them.
4. Give them what they need to do the job – This could be tools, training or other resources.
5. Let them control the task – Give your team the freedom to manage their work. Just remember to check in regularly and make sure they know that you’re there if they need you.
6. Be patient – Give your team the time to learn and explore. This helps them do a good job. It will help you too, as they become quicker and more efficient.
7. Encourage and give feedback – Let people know how they’re doing. Done in a positive and encouraging way, this helps them perform to their best ability. Give thanks for tasks taken on. Appreciate and give feedback for jobs well done and areas for improvement. This gives clear direction and helps motivate.

See the big picture

Know that you and your business will experience ups and downs. Focus on your end goal and don’t let small everyday issues distract you. You’ll need to handle issues flexibly. Sometimes this involves reaching a compromise with others.

For each decision you make, ask: will this help to achieve my overall goals for the business? If the answer is yes, it’s likely to be a good choice. If not, you may need to think carefully about whether it fits in with your plans for growth.

Role-model

When others see you living by your business’ values, it can inspire them to do the same.

For example, if you show confidence in tackling issues, they’ll start to do the same. Your team looks to you to guide them through the highs and lows of the growth process.

Show commitment

Let your team see that you’re working with them, through all the highs and lows. Celebrate together. Be willing to help out to get the job done. Make it clear that you see yourself as part of the team, not separate to it. Doing this can help you earn their respect.

Get creative

Use creative approaches and encourage your team to do this too, to meet challenges and achieve goals in ways that are different to your competitors.

You’re not on your own

Hopefully, these have given you some ideas on how to lead your team as you grow your business. You may find some are easier to adopt than others. Note the ones you need to work on. Being self-aware and knowing your own strengths and weaknesses will help you become a good leader.

It may seem rather lonely being a leader, though. Others look to you for guidance. So where can you find this, too?

The good news is that there are plenty of people who can help.

Support networks

It’s good to build a support network, as you grow into your role as leader. You may already have one, that you can extend to meet your changing needs as your business grows. These networks can be a mix of online and face-to-face contacts.

Your network could include:

• Others in your sector.
• Local business owners – For instance, the local Chamber of Commerce.
• Partners, suppliers and other contacts – People you work with, who know your business well.
• Online networks – Use forums like LinkedIn, Enterprise Nation and the Local Enterprise Partnership network.

Mentors

If you need support that’s more personal to you and your business, a mentor might be the answer. They can help you learn more about yourself and your goals.

Mentors can:

• Share knowledge and experience – This can be invaluable if you’re struggling with a new or tricky challenge.
• Expand your outlook – They may help you look outside the ideas you already have, and inspire creativity.
• Show opportunities – They’re likely to have a wide network of contacts to tap into.

When looking for a mentor, pick someone you can trust. They should be open with you and give you useful feedback.

Look at people who have leadership experience. Who do you respect? It could be someone you know who motivates you and can push you to grow. Maybe it’s a local business owner with a good reputation. You may want to research influencers or experts online. If you have a few people in mind, think about how close you feel to this person. You’ll need to feel at ease talking to them.

Whoever you pick, meet them with an open mind and be willing to learn from them.

One option is to connect with volunteer mentors through Digital Boost. They can connect you with volunteer experts in strategy, marketing, digital, finance and more. Their platform can help you match with relevant business mentors.

Business consultants

As you grow your business, you’re likely to be busier than ever. Business consultants can share the load by giving expert help.

They can:

• Find potential issues – They may spot these early so you can deal with them.
• See opportunities – They’re aware of market trends and have wide networks to help.
• Check you’re compliant – Legal consultants can do this and tell you about any changes you need to make.
• Improve your finances – This could include cost-saving ideas and solutions.

Usually, you’d hire one for a short or fixed period of time. They can help with one or more aspects of your business. Some are experts in a particular area, like Human Resources or IT. They tend to work by spending time with you to see how you run your business and to learn your plans for growth. Then they’ll come up with ideas and solutions to help you grow.

To find someone who meets your needs, speak to others in your sector. They may have recommendations. You could also check online reviews.

When you meet them for the first time, ask questions to check they are right for your needs. They’ll be working for you, so it’s important to set expectations up front. Agree rates, what you want from them and timescales. Tell them your growth goals, and how you’d like them to help you reach these.

Virtual assistants

When you run a business, there’s so much admin to do. It’s tempting to save costs by doing this yourself. As your business grows, you may find yourself bogged down in these day-to-day tasks. They might even be stopping you from moving forward as quickly as you want. If this is you, virtual assistants can be a good source of help.

Virtual assistants are there to ease your workload. They can take on some of the more mundane jobs so you’re able to focus on your growth plans. Some specialise in certain tasks. This can be a low-cost way to improve efficiency.

They can:

• Field phone calls and send emails.
• Plan meetings, travel and events.
• Manage your calendar.
• Follow up on sales leads.
• Manage social media and blog posts.
• Update documents and web content.
• Run reports and keep records.
• Send and follow up invoices.
• Process payments.

You can find virtual assistants directly or through a marketplace like Upwork or TaskRabbit. Costs will vary, depending on the service you need and how much demand there is. It’s always good to ask around for recommendations.

When you find someone you think meets your needs, look at their earlier work and vet them carefully. Agree their rates, what you expect for this, and timescales. Be aware that some will be overseas. This means they may not be around in your own working hours. So plan your meetings with them at a time that works for you both.

Complete a skills audit

Listing the skills you and your team have is a good starting point. Focus on the skills you’ll need to achieve your growth goals. This will help you delegate tasks and identify any areas where there are gaps.

There are many ways to do this. We’re suggesting you start with a skills matrix and carry out a gap analysis.

Step 1 – Create a skills matrix

You can use a spreadsheet or do this on paper. This is a table with a list of skills across the top and names of your team down the left side. For each person, note the skill level for each of these skills. Keep this simple. Something like 0-3 where 0 is ‘no knowledge’ and 3 is ‘expert’.

Step 2 – Skills gap analysis

Now you have a list of skills and can see who has these. It’s a good idea to check you’ve listed all the skills you need. Maybe review your growth goals and methods with someone else. A second pair of eyes can be really helpful here.

Once you’re happy that you’ve captured everything, look for the skills gaps. What tools or areas do you have no or little knowledge on? These are where you’ll need to learn. This could be a training course, online tutorial or speaking with an expert.