BUSINESS TEST! DOES YOUR STARTUP HAVE GROWTH POTENTIAL?
As your startup advances, it is important to evaluate it so as to find out if it has growth potential. This is a good indicator of if investors or partners will be interested in your business proposals. It forecasts your future ability to generate larger profits, expand workforce and increase production.
If your business is declining alongside the excuse of economic recession, it is a red flag. It is better that it is growing with the economy or faster than the economy. You might also need to check if your business can be replicated in another geographical area. This does not only speaks to scalability but also challenges if the business is only viable in a certain type of environment.
Some businesses struggle to maintain margins as they add more customers. Or when current customers increase revenue, the businesses reduce their margins. If not properly managed this can have a negative effect on the company’s bottom line. The healthiest kind of growth, the more you grow the better your margins are. A lot of that has to do with your industry and business model, but if you can get there, it’s a great place to be.
Chances might be that you don’t see your business at the top of your strategy board yet then what you need to do return. to your business plans and re-strategize to enable you to boost your sales, increase the number of customers and improve your overall business potential energy and attain growth potential.