Innovation can lead mature businesses to deeper success.
Key takeaways
Consistency across products, production, services and functions is key.
Data and technology can drive effective change.
The dynamics of a mature business
The relative stability of the maturity phase may be a welcome development. But it can be accompanied by declining sales and thinner profit margins. The urgent tasks for your business are to differentiate itself and innovate with an eye toward restarting the growth engine.
Questions and answers:
Best practices for owners of growth stage businesses
People, process, and technology
People
In maturity, innovation can be the difference between a struggling company and a company that thrives.
Best practice
Engaging the entire team in an idea can help drive innovation. If this is a big cultural change for your organization, then it might make sense to engage with an advisor who is accustomed to making these changes on a grand scale. After all, change is hard.
Process
Growth and margins are no longer able to mask the consequences of bad processes. You are likely relying upon many others to accomplish a standard goal.
Best practice
To create standard outcomes, establish uniformity to production of products, services and internal functions.
Technology
When trying to innovate and keep margins up in a more commodity focused business, data and technology can be the keys to success.
Best practice
Have systems in place to understand waste and concentrate mitigation efforts, which can lead to huge gains. Also, understanding customer buying habits allows you to know more quickly if changes are effective or if you need to keep tweaking.
Tax tip
Heed the tax implications of strategy shifts
Strategic shifts in the business often lead to changes in tax structure and planning. Talk with your tax advisor about new opportunities that may exist based upon the strategic choices you are making.
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Owning a business takes a certain confidence and grit. All owners are different, but all face similar challenges. Our business ownership lifecycle ebook shares insights gleaned from helping business owners face these challenges head on.
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