Part of being a successful entrepreneur or business owner is possessing the ability to juggle the many priorities vying for your attention. You make dozens of decisions about how your company should be run each day, and all of those decisions reflect your business’ priorities.
There is no better way to determine a business’ priorities than by evaluating where money is spent. If you want your business to grow, you have to have the right priorities in place, and back your priorities up with adequate resource allocation.
Find out what you should consider when determining your priorities and how to effectively allocate resources to foster growth.
Determining Your Business Priorities: What To Consider
When you’re evaluating your priorities, consider two areas of your business: spending and growth.
Typically, these two aspects of business go hand-in-hand. The areas of your business where you put your money are the areas that usually flourish. Directing resources to an area means positive improvements, like a larger staff, better equipment, advanced technology, or expert hirers. Once you’ve considered where your money is being spent, evaluate how those resources impact business growth.
Is your company growing? If so, what areas are contributing to growth? For some companies, sales and marketing drive growth, strengthening their claim to resources. For others, investments in product innovation have a direct correlation to increases in profits. With greater profits come expansion and growth.
Are you allocating resources in a way that cultivates growth in your company? For example, which hire would support greater growth in your company: hiring another member of your sales team or another member of your product development and innovation team? Every business is different. These answers just depend on the state of your company.
The Top 5 Priorities For Companies That Are Growing
After you have evaluated what your business priorities currently are, you are prepared to make informed decisions about what your priorities should be. This can be a difficult decision for business owners. Look at some of the priorities that rapidly growing businesses set.
- Increasing customer base
- Improving customer acquisition ROI
- Streamlining the sales process
- Increasing brand recognition
- Scalability that supports growth
Each of these objectives has a different, positive impact on a business’ profitability. Do any of these resonate with your and how your business is run?
Prioritizing Your Resource Allocation
The rubber meets the road when it is time to prioritize your resource allocation. This is managing your priorities in action. Sometimes, however, allocating resources based on growth becomes complex. What area of your business needs attention first? How much should you allocate? These are not always obvious answers.
To help your prioritize your allocations, consider what areas of your business could muster immediate growth (like your sales team). Start with areas that will increase your cash flow in the immediate future. Once those have been addressed, move to the priorities with long-term benefits.
Right now, you may be prioritizing the areas of your business on autopilot. You address issues as they arise, but have not considered your priorities past that. Sit down and really think about the areas of your business that require the most attention and use your funds to support them. When you do, your company will be primed for growth.