Every ambitious entrepreneur dreams of growth. It’s practically in your DNA.
But when it comes to food and beverage businesses, growth can be a bit more complicated. And when years of hard work still result in a business that’s demanding and not hyper-profitable, it can be disheartening.
Your dreams of growth start to feel out of reach and you begin to feel hopeless.
What you shouldn’t do, however, is listen to the naysayers who tell you that a food and beverage business can’t be grown. Yes, this industry can be difficult, but it’s also misunderstood. With the right steps in place, you can take your business to new heights.
In previous blogs, we’ve already discussed what you need to do to create a more organised, structured and efficient food & beverage business that performs like a dream.
And once you’ve done that, the logical next step is growth.
That’s why we’ll focus today on how you can grow your business through three key steps. When done correctly, these steps will help you achieve the growth you’ve been dreaming of.
#1 – Purposeful Design
There’s no such thing as accidental success. If you want to grow a profitable chain of cafes or restaurants, you need to purposefully design all of your operations with the intention of growth.
Every decision you make – from the location of your first store to the type of cup you use – needs to be made with growth in mind. Growth should be built into your business’ DNA.
One way to do this is to focus on creating a repeatable model. This means that your business should be able to be replicated in other locations with minimal changes.
For example, if you’re planning to open a new store, you should be able to use the same blueprint as your first store. The goal is to make the process of opening new stores as streamlined and efficient as possible.
Another way to build growth into your business’ DNA is to make sure that all of your systems and processes are scalable. This means that they can easily be expanded to accommodate a larger business.
For example, if you’re using manual processes to manage your inventory, this will quickly become unmanageable as you open more stores. But if you have a scalable inventory management system in place, expanding your business will be much easier.
Investing in purposeful design may seem like a lot of work upfront, but it will pay off in the long run. By building growth into every aspect of your business, you’ll be setting yourself up for success.
Without careful thought and purposeful design, growth can be a painful process that can cause a huge amount of stress and even end up damaging your business. But if you take the time to design your business for growth, you’ll be able to expand your operations smoothly and efficiently – without sacrificing your sanity.
#2 – Tracking Profitability by Location
Opening new locations is one thing – managing them is quite another.
In order to accomplish profitable growth, you need to be able to track the profitability of each individual location. This way, you can make informed decisions about where to open new stores and how to allocate your resources.
If one location is performing particularly well, you’ll be able to replicate that success in other locations. But if another location is consistently losing money, you’ll be able to quickly make changes to turn things around.
You can investigate the reasons behind a location’s profitability (or lack thereof) and then use your findings to make changes that will improve your bottom line.
For example, if you find that a particular location is consistently understaffed, you can make a change to your staffing policies. Or if you find that another location is being hit hard by competition, you can adjust your marketing strategy.
On the other hand, if one location is performing exceptionally well, you can use that as a case study to try and improve the performance of other locations.
Tracking profitability by location is a crucial step on your journey to success. Without this information, you’ll be flying blind – and that’s a recipe for disaster. But don’t worry – with industry specialists on your side, you’ll always have the support and guidance you need to make the right decisions for your business.
#3 – Becoming Hyper-Investable
If you’re serious about growing your F&B business, you need to make sure that you’re hyper-investable. This means that you’ll have potential investors knocking on your door, begging you to take their money.
As a F&B business owner, you’re probably understandably worried that investors are reluctant to invest in the food and beverage industry, particularly during the current recession.
However, if you are able to show them fantastic numbers, a clear vision for your business and a strong financial model, then you will be in a much better position to attract investment. After all, who doesn’t want to invest in a business that is thriving and has a bright future?
By putting yourself in a strong position to raise capital, you’ll be able to fuel your growth and take your business to the next level. Investment is a crucial step on the road to success – and with the right partners on your side, you’ll be able to make it happen.
Profitable growth is essential for any F&B business owner who wants to succeed. It’s not always easy to achieve by yourself, but with the right financial know-how, you can transform your business into a profitable chain that’s lucrative and a joy to run.
You don’t start a F&B business without a significant amount of passion, so make sure that your business model and growth strategy reflect that. With the right foundation in place, you’ll be able to take your business to new heights.
Finances are what make or break a business. We help your cafe, restaurant or cloud kitchen grow more by providing financial management solutions. Follow us on Instagram to get an idea of what we can do for you. Follow us here: @gainsaccountants_