Mastering Growth in Business

Mastering growth in business is not just about expanding operations but also navigating the complexities that come with it. In this episode of Your Money. Your Mission., Matt Haas, Senior Vice President of Business Banking at Johnson Financial Group, shares insights on how business owners can position themselves for successful scaling. Whether you’re a startup or an established company, understanding the right strategies for growth can help you avoid common pitfalls and accelerate your business.

1. Building a Strong Team 

One of the foundational steps to mastering business growth is assembling the right team. Internally, successful teams are made up of individuals who share the same values and mission but bring diverse backgrounds and experiences. These varied perspectives not only foster innovation but also ensure that the team is adaptable and ready for challenges that come with scaling a business.

Externally, surrounding yourself with professionals such as accountants, attorneys and bankers is crucial. They offer specialized expertise to guide critical decisions on finance, legal matters and strategic growth. According to Haas, a holistic team approach—where both internal staff and external advisors collaborate—can help business owners navigate growth more efficiently.

2. Having a Dynamic Business Plan

Another cornerstone of mastering growth is having a solid business plan. However, this is not a one-and-done document. Haas stresses businesses should continuously evolve their business plans as they grow. A strong business plan should detail your company’s mission, target clients, management structure and most importantly, financial projections.

Businesses typically project three years ahead but revisit and revise their plans annually. This allows companies to adapt to market changes, manage risks and seize new opportunities. Involving external advisors, such as accountants and financial institutions, in reviewing the business plan ensures it aligns with both short-term and long-term goals.

3. Financial Health and Smart Financing

Managing finances effectively is critical during periods of growth. One of the key challenges businesses face is cash flow management. As Haas notes, cash flow is the "lifeblood" of any business. Poor cash flow management, overleveraging or underestimating the costs of growth can severely hamper a company’s ability to scale.

Businesses should explore financing options to best suit their growth phase. These might include lines of credit, term loans for equipment and real estate, or Small Business Administration (SBA) loans. For companies that might not qualify for traditional financing, Community Development Financial Institutions (CDFIs) offer unique options. A tailored financing strategy can ensure  growth is sustainable, allowing businesses to balance investments in new products or services without straining their financial resources.

4. Embracing Market Research and Innovation

As markets evolve, businesses must stay agile by conducting regular market research and engaging in competitive analysis. Understanding customer needs and identifying new client segments is critical for continued growth. Haas recommends leveraging social media and digital marketing to tap into new opportunities.

In addition to marketing, businesses must embrace innovation, particularly in technology. Whether through artificial intelligence or other advanced tools, technology can streamline operations and support scalability. Companies that are proactive in adopting new technologies are better positioned to capitalize on growth opportunities.

5. Fostering a Positive Company Culture

A strong company culture is essential for attracting and retaining top talent, which in turn drives growth. Businesses need to ensure their values and mission are clearly communicated and embodied by their employees. Haas emphasizes the importance of creating a diverse and inclusive environment where employees feel empowered to contribute unique ideas. In growth phases, investing in employee training and development ensures your team can meet future challenges.

6. Protecting Your Business from Fraud

Fraud is an increasing threat to businesses, especially those in growth phases. Haas points out companies must be vigilant about cybersecurity, supplier fraud and internal embezzlement. Businesses should establish strong internal controls, conduct regular audits, and work closely with their financial institutions to prevent fraud. Training employees to recognize fraudulent activity is also essential in protecting your growing enterprise.

Conclusion

Mastering business growth requires a blend of strategic foresight, financial management, and a strong internal and external team. By continually refining your business plan, maintaining financial health, embracing innovation, and fostering a positive culture, your business can navigate the challenges of scaling while seizing new opportunities.