People become self-employed and start their own businesses for many reasons. Plenty of entrepreneurs have taken that step because they’ve always wanted to run their own business and have spent years preparing and creating business plans. However, there are equally as many entrepreneurs who’ve entered the sector by accident, without preparation or because they’ve had no other choice.
Successful businesses have been built by entrepreneurs with both of these motivations. Still, the latter group might have been less intentional about how they’ve developed and run their businesses. So, what has led to their companies being so profitable?
This article answers this question, covering the topic of growth by accident in business. It also discusses the necessary moves to follow accidental growth to sustain the initial success.
Growth by accident in business represents organic growth that is not driven by knowledge or based on a specific business strategy. It can result from a great business model you’ve started implementing by accident, your offer of high-quality products or services, or simply circumstance. In fact, it can be caused by a combination of all of the above. This type of business growth is accidental rather than intentional.
On the other hand, intentional growth is based on a business model supported by a network of strategies and a clearly defined system and/or process. It’s a defined path in which one’s business will develop, created with one’s target customer base in mind.
Accidental growth might work for you for a while, but It is not easily sustainable or scaleable in the long run. Eventually, your business will reach a plateau, stop growing, and begin to decline. You won’t be able to change anything unless you are intentional about your business’ growth. The following paragraphs will discuss this topic in more detail.
There are several steps to generating intentional growth in business. You will have to analyze your business and your customer base, identify a specific goal you’re striving toward, identify the tools you need to use, and focus your business efforts.
The paragraphs below will delve into these steps and discuss their importance.
Before you look into the changes you have to introduce to make your business growth intentional, you need to understand the growth you’ve experienced so far. There’s a reason you have been successful without implementing any specific business strategies. Analyze how your business has been run and identify the factors that have caused its initial growth.
They might be related to the products and services you’ve been offering, the overall message behind your business, or the business model you’ve accidentally started implementing. Whatever your growth by accident originated from can positively influence the direction in which your business should develop in the future.
There’s a lot of information you can gather from your business mistakes and failures. If you’ve noticed that your business has stopped progressing, reached a plateau, or started to decline, try to identify why.
You may again find that your errors are related to how you’ve marketed your services or products, the message you’ve been sending to your customers, the goals you’ve been setting, etc. Regardless of what they are, make conscious efforts to leverage your mistakes and take corrective steps toward regaining growth.
The way you’ll run your business and the strategies you implement heavily depend on your customer base. If you’re not familiar with who your audience is, you won’t be able to focus your efforts, and you’ll waste a ton of energy and money along the way.
So, it’s paramount you identify your target customer base and learn as much as you can about them. Focus on finding out their wants, needs, and preferences, and then sculpt your business to suit and cater to them.
You can learn a lot by asking the right questions and communicating with your customers. For instance, you can substantially benefit from asking your customers the following questions:
Based on these answers, you can make changes to your business and your short and long-term goals. Once you know why customers are attracted to what you have to offer, you can focus your marketing efforts and increase your ROI (Return on Investment).
You can start thinking about business strategies once you’ve gathered enough information about what you’ve been doing right and wrong and your customer base. These strategies, tools and processes should match your line of business, customer needs, plans and goals.
Without the right tools, you won’t be able to focus your efforts, and your energy, time, and money will inevitably dissipate. You might be able to understand this problem better with the help of an analogy.
Imagine your business efforts as light and your potential customers as a dark room full of people. Now, think about the tools you need to use to reach those customers. A flashlight generates unfocused light — it lights up a wide area and a ton of people. So, it’ll likely spend energy on people who might not be interested in what your business is offering. You’ll end up wasting a ton of energy without making a profit.
However, if you find a tool that can focus your light on a small area — a laser, for instance — you’ll be able to direct your effort toward specific people interested in becoming your customers. Applying the right tool will result in a much quicker and more cost-effective way of reaching your customers and turning a profit.
Growth by accident is a lucky occurrence in business. It can help you find your footing but not sustain your business long-term. So, you’ll have to work on understanding where your success originated and how you can leverage that knowledge. You should aim to focus your efforts and create a system that will generate intentional scaleable growth.
Schedule a call today with one of our team members to discuss your accounting or tax needs – For More Details, Click Here.
This blog is not meant to provide specific advice or opinions regarding the topic(s) discussed above. Should you have a question about your specific situation, please discuss it with your GBA advisor.
GBA LLP is a full-service accounting firm in the Greater Toronto Area, but we primarily service all of Ontario as well as the rest of Canada virtually, except Quebec. Our team of over 30, provides Audits and Reviews of financial statements, and Compilations of financial information, as well as corporate tax returns. We provide specialized corporate tax and succession planning for small and medium businesses, in addition to general advisory services.
If you would like to schedule a call to discuss your accounting or tax needs with one of our team members, please complete the free no obligation meeting request on this page.