Key tips to kick-start your growth business in 2015

When it comes to emerging or growth businesses, success or failure is all about knowing both the "why" and the "how" before taking action - the so-called "learning before earning" principle. This is particularly true given the challenging economic conditions that business owners face in 2015.

"Growth enterprises will need to be agile and attuned to changing market needs to take advantage of opportunities this year," says Smith, director in Accounting and Financial Advisory at Deloitte in the Western Cape. "Be clear on your strengths and equip yourself with more information, strategic insights or good advice to achieve clarity on your overall vision, your market and your product or service," advises Smith.

Be honest with yourself

It is important that growth business owners critically evaluate their own personal strengths and ensure that they include the appropriate complimentary skills by appointing the right individuals in their core team, or identifying advisors or consultants who can help them. This will help them focus on their core strength, that is, leading and running the business. "Don't assume you have all the answers or that you are the only person who can really get things done," cautions Smith. "The reality is that the perspective of others can provide critical insight into business cycle ups and downs, managing the business and top-line and bottom-line profitability."

The assessment of market place trends is of great importance. "Offer what people want to buy, not just what you want to sell," says Smith. "Companies need to do thorough, focused research and use their knowledge and experience to develop propositions that are in line with market needs."

Cash flow is important in any business, and particularly in growth businesses. "Ongoing positive cash flow is the lifeblood of business continuity and is absolutely essential to feed bottom-line profits," asserts Smith. Business owners should be innovative in the way they approach this. For example, if your company is offering a professional service, you can ask for a deposit up front, with interim payments based on milestones and then the balance due on final delivery. "The key is to make sure there is little or no gap between when businesses pay for labour and stock inventory and when these costs actually get paid."

Keep costs down wherever possible

The simple message of money coming into the business always exceeding money going out is worth bearing in mind, advises Smith. "Consider ways to leverage better prices and payment terms in order to keep your costs and expenses low."

Sales and marketing is an integral part of building a company's customer base and reputation, so don't neglect it. "From the start you'll need to find a good way to source and convert leads into sales, as well as deliver on promises to customers to achieve repeat sales," she says.

Finally, Smith recommends that the growth enterprise owner implements processes in their business to measures key metrics. "You can't change what you don't measure and you can't tell if a programme or strategy is working if you're not faithfully testing, measuring and tracking your results," she concludes.