The secrets to success that saw this small business quadruple in size
28 April 2022
Everyone knows that feeling of success. That feeling you get when you are doing the right thing and the results prove it.
For business owners, those results are tangible – more customers, more money in the bank account, the need to employ more staff and a growing business. And for Ngaire and Jeremy Mansfield from Straight Flush Plumbing, that feeling of success can be seen in the rapid expansion of their business and increase in their geographical coverage.
Here are some of the most important topics we considered when Straight Flush Plumbing were looking to expand.
The legal structure of your business
Your legal structure and business model need to work hand-in-hand. You should consider:
Introducing new equity and owners into the business including existing employees.
Whether a franchise model is appropriate.
A legal structure that allows future flexibility to spin off parts of the business.
A structure that is tax efficient.
Funding business expansion
Most businesses require day-to-day funding and would need to take on additional debt to fund expansion. But, before you take on any debt, you should consider how your personal assets or existing parts of the business can be protected from borrowings for the business. Borrowings and any losses due to start up activities need to be optimal tax-wise too.
Establishing a new business
Any new business requires time to establish itself. This means either the owner(s) has to focus their time and energy into it, at a risk to the existing business, or a trusted employee will need to undertake the task.
How does the business engage and incentivise their staff with such a critical project? The answer lies in the operating model and having the right people on board, particularly where the business is expanding into a new geographical location.
Leveraging your existing business to increase success
Firstly, identify those things that make your existing business a success - be it a unique product or service offering or way of doing business. Leverage your current systems, processes and personnel (where possible) to support the new business. Take all those success factors into the new business and look for others to take back to your existing.
Increasing success in a new location
There can be a lot of work to be done to get your business known in a new location. Plan and budget for marketing costs, invest in strategic relationships and partnerships and make connections in the community.
Finally, get a group of professionals on board with you that you can trust. Successful businesses don’t make it on their own. They rely on trusted advisers with years of expertise and experience they can draw on.