In order to grow, targets need to be set. Professor Christoph H. Loch from Cambridge Judge Business School explains how important this is.
Ambitious growth targets are essential
Many SMEs don’t grow and therefore people feel that setting ambitious growth targets for SMEs is not realistic.
But we need to turn this question on its head. The empirical evidence across the board shows that unless an SME has ambitious growth targets it will simply not grow.
So the answer is you need to set ambitious growth targets to have a chance to grow. And these growth targets can be revenues within your current customers and with your current products and that’s the easiest and immediate, but you can also target some slightly different customers which are a bit different from the customers that you have now and try to capture some of those.
You can also say that to the customers who I know, but I could offer them a slightly different service. So there are different ways of doing this and none of them require that you do something revolutionary, but this is possible for SMEs and you have to give yourself that ambition because otherwise you’re going to stay where you are.
Related Entrepreneurship Centre Videos