WAYS TO GROW YOUR BUSINESS
A small business is an exceptional investment that will not only increase in value with improved performance but it will also provide the owner employment, an above average return, a sense of achievement and, in some cases, non cash benefits. But every business owner needs to look at the future, and ways to grow the business. A few years ago (2012) the Harvard Business Review published an article (below) which offers some interesting thoughts on how to grow and innovate in business. The article talks about a "tool" they have named the "Innovation Ambition Matrix" which (essentially) suggests that businesses should invest;
- 70 per cent of energy and effort into serving your existing markets and customers,
- 20 percent of energy and effort into branching into “new to the company” business activities
- 10 per cent of energy and effort into developing “breakthrough” products or services.
This concept is particularly relevant in 2015 where disruptive technologies and methods are challenging traditional business models. The image below illustrates how this thinking works. The idea is to;
- Look after your core business,
- Look for strategic opportunities
- Develop a “breakthrough” for markets that don't yet exist.