Building strong foundations for growth
Business owners often remark that running a business can be a lonely existence. People become focused on the day-to-day “firefighting” rather than working strategically on their business. If a business is not targeting growth, then it is likely to ultimately be moving backwards.
Whilst it is easy to talk about growth, delivering it successfully can often be a challenge. Businesses that achieve this tend to follow a pattern of ensuring they get the fundamentals correct. To achieve high levels of growth, this often means considering acquisitions, which adds further to the required capabilities of the business owner and their team.
Scaling starts with firm foundations in relation to a successful business model, offering products or services required by target customers and delivered in an efficient and financially stable way. A number of businesses achieve this early success, but often the same set of actions will not be sufficient to then accelerate growth and scale the business.
Planning for expansion and operational change
Revenue remains the only item on the profit and loss account that represents an inflow, so a clear plan around sales growth is key. For many businesses, scaling requires moving outside the domestic market, so ensuring a commercial market fit in new territories is essential.
Scaling will also mean changes to the support functions of the business, particularly in its operations, processes, and capital expenditure.
Building the right internal and external teams
One key area, however, remains - and that is getting the right team, both internally and externally. It is inevitable that changes will be needed within the team to deliver success along the journey, and the most successful businesses make these changes early, future-proofing the business for its new growth plan. The skills and experience required to efficiently and effectively manage a £10m manufacturing company differ greatly from those required to manage a £100m business.
There may well need to be changes at the senior leadership level, as it is essential that there is a common purpose that everyone buys into. Consensus and agile implementation are also best achieved with a smaller group of key decision-makers.
Business owners should also recognise the importance of strengthening their external team. Trusted partners - whether financial, legal, or funders - will be essential in executing the growth plan, including navigating the inevitable bumps in the road. Early engagement pays dividends, as the internal team can benefit from the experience of others, thus circumventing the potholes that others have fallen into.
The role of private equity in scaling
Increasingly, private equity funding partners have become more of a feature for successful scaling businesses in the province. We often see that the ability of a business owner to partly de-risk their investment in the business allows for an acceleration of growth. In addition to cash for investment, the right firm will provide practical experience and advice on how best to deliver on the growth story. Often, there is significant professionalisation of the business, which ultimately makes it more attractive in a future sale.
Northern Ireland has now seen a number of successful private equity-backed businesses grow and achieve tremendous exit returns for all. One of the latest is Hospital Services Group, which was sold to Asker plc in early 2025. The business grew from a £2.5m turnover in 2015 to around £50m on exit. The team successfully scaled organically and through selective acquisitions to create a leading multi-product sales and service business across the UK and Ireland.
Scaling benefits the wider economy
Scaling a business successfully will drive enhanced value for shareholders but, importantly, will also provide key dividends for employees, supply chains, and the wider economy. Scaling demands change, so it is imperative that business owners plan for this at an early stage and ensure that the wider team is in place from the outset.
To learn how our Deals Advisory team can support your growth ambitions, explore our Deals Advisory solutions.
