Coping with fast growth requires you to plan ahead. From your ecommerce business’s finances to your product lines, how should you plan for fast growth?
A fast-growing ecommerce business requires you to be business minded. At any given time, you should know how much time you’re spending on the business, how much profit you’re generating and how much cash you’re using to run the business.
Fast growth requires your ecommerce business to become more efficient. For you to double the size of your profits, do you really want to spend double the amount of money, time and resource on the business? Of course not.
Here is what you need to think about in order to double your ecommerce business:
1. Understand your business – every aspect of it.
From noting the amount of time you spend on each task to the return on capital of each product; you need to measure everything in your business that consumes resource (resource includes money, space, time, staff, etc).
2. Plan for change
What bits of your ecommerce business do you need to improve in order to double the business? Be specific about what needs to improve: is it the amount of time spent on processing orders? Is it lowering the cost of packaging? Leave no stone unturned.
3. Give it time
Don’t assume that you will double your business overnight. Give the business time to adapt to the new regime, and ensure you also give yourself a couple hours each week to think about and review your objectives.
4. Measure results
You need to keep track of how the business is changing, so you know when you’ve reached your objectives. How are things limiting your ability to double your annual earnings? What still needs to improve?
5. Focus on one or two things at a time
It is better to focus your energy on improving one or two aspects of your business at a time, rather than trying to change everything overnight. Once you’ve improved the first couple of processes, move on to the next, and keep going until the business is a lean, mean, profit-generating machine!
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