8 Strategies to Manage Growth (and the Associated Costs of Growth)

GTP Admin • May 21, 2025

Running a small or medium-sized business is challenging. Investing in hiring, marketing and raising prices may drive growth… but also impact the bottom line. Making prudent investments while managing cash is extremely important.

 

Here are some practical strategies to help leaders achieve long-term profit growth, without putting the business at risk.

 

 

1. Stay Informed: Monitor Key Metrics

 

Keep an eye on gross margin, net profit margin, and other key metrics which make sense in your business. For example, a financial services firm implemented a real-time dashboard to monitor key performance indicators (KPIs), and this analysis helped make informed decisions about their pricing and cost-control strategies.

 

 

2. Price Right: Regularly Review Your Pricing Strategy

 

Research the market to ensure prices are competitive. Your pricing should capture the true worth of products or services in the minds of your customers. For example, a theater owner learned to modify ticket prices based on customer demand, resulting in increased revenue per performance even in slow periods.

 

 

3. Bundle Up: Offer Product Bundles

 

Create bundles of products or services to encourage customers to buy more. This can increase the business’s average sale value and boost profits. For example, an e-commerce platform introduced personalised product bundles based on customer purchase history, leading to a significant increase in average order value.

 

 

4. Discount with Purpose: Offer Strategic Discounts

 

Use discounts strategically to move slow-moving inventory or to attract new customers. For example, a seller of furniture offered targeted discounts for high-end products during off-peak seasons, which had a long-term positive impact on the bottom line.

 

 

5. Start Smart: Streamline Your Operations

 

Review processes and identify inefficiencies. Find ways to automate or simplify them. This reduces costs AND frees up time for the team to focus on what matters. For example, a manufacturing business implemented an automated inventory system, saving 100 man-hours per month. In addition to reducing costs, the time saved was partly allocated to innovation, with good results.

 

 

6. Stay Sharp: Negotiate with Suppliers

 

Regularly review supplier contracts and don't be afraid to negotiate better terms. Consider forming partnerships or buying in bulk to get discounts that boost the bottom line. A retail chain which renegotiated supplier contracts, achieved a 15% cost reduction, which directly increased profit margins.

 

 

7. Be Agile: Implement Just-in-Time Inventory

 

Keeping a lean inventory helps reduce storage costs and avoids tying up cash in excess stock. For example, a food distributor uses sales forecasts to order inventory only when needed. This has reduced warehouse costs and food waste, leading to higher profitability.

 

 

8. Work Wisely: Outsource Non-Core Activities

 

Consider outsourcing tasks like Accounting or IT support to specialised firms. This lowers overhead costs and gives access to expertise to help the business grow. For example, a software developer outsources some projects to an offshore team, which accelerates time-to-market and improves customer satisfaction.

 

 

Each business is different but consider these practical strategies to improve your business's profitability and set the stage for long-term success.


More GTP Articles

Capital Works Deductions

By Emma Glover • May 22, 2025
What are capital works? Capital works refer to substantial improvements, renovations, or construction that increase a property’s value or extended its life. Examples include: - Building extensions - Upgrading plumbing - Replacing roofs - Restumping of the house - Replacing the lawn - Replacing retaining walls These are long-term improvements, not regular repairs or maintenance. Unlike routine maintenance, which can be deducted in the year you spend the money, capital works deductions are spread out over 25 to 40 years. How do these deductions work? You can claim a percentage of the cost of capital works each year. Generally, residential properties built after 16 September 1987 can claim 2.5% per year up to 40 years.  Who can claim? Anyone who owns a property with significant improvements can claim this deduction, including property investors, business owners, and landlords. However, principle place of residence that are not rented out are not eligible for capital works deductions. Capital works deductions can be claimed as a deduction against the rental income that has been made for the year if you have made substantial improvements to you property.

Bookkeeping Tips

By Natasha Gardner • March 26, 2025
Effective bookkeeping is vital for the success of any business. By understanding and implementing various methods, leveraging the right software, avoiding common mistakes, and following practical tips, you can maintain accurate financial records and make informed business decisions. Common Mistakes Below are some pitfalls to watch out for: By being aware of these common mistakes [...] Read More The post Bookkeeping Tips appeared first on Green Taylor Partners.

Fringe Benefits Tax (FBT) Explained: What Employers Need to Know

By Regina Chia • March 19, 2025
Fringe Benefits Tax (FBT) is an important consideration for employers who provide additional perks to their employees. Whether it’s a company car, free gym memberships, or entertainment benefits, these perks may be subject to FBT. Understanding how FBT works can help businesses remain compliant and avoid unnecessary tax liabilities. In this article, we’ll break down [...] Read More The post Fringe Benefits Tax (FBT) Explained: What Employers Need to Know appeared first on Green Taylor Partners.

Building a Brand Identity to Standout in a Competitive Market

March 17, 2025
Some major businesses are able to ‘capitalise’ their brands. That means the brand has been valued and included as a balance sheet asset.  Most businesses don’t go to those lengths… but leaders who build valuable brands usually have a better chance of standing out and attracting customers and partners.  Let’s look into what makes a [...] Read More The post Building a Brand Identity to Standout in a Competitive Market appeared first on Green Taylor Partners.

Death & Taxes – What happens when I die?

By Matt Richardson • March 12, 2025
There are some general rules you need to be aware of when preparing your own Estate Planning or having some role in the affairs of a deceased estate. Inheritance There is no tax payable on assets which pass from an Estate to a beneficiary in accordance with the deceased’s Will. Final Tax Return The deceased [...] Read More The post Death & Taxes – What happens when I die? appeared first on Green Taylor Partners.
More Posts