As businesses age and reach maturity, maximising returns becomes a more nuanced task. Early-stage growth spurts give way to steady operations, and long-established processes can sometimes become stagnant.
For mature businesses, the question isn’t only about increasing profits – it’s about making the most of existing assets, enhancing efficiency and ensuring that every part of the business contributes to sustainable success. This blog looks at actionable ways mature businesses can take their performance to the next level.
Reviewing and streamlining operations
One of the simplest yet most effective strategies for mature businesses is operational streamlining. When businesses reach a certain size and age, it’s easy for outdated processes to linger. Many of these were likely to have been set up in the company’s early days and may have served their purpose at the time. But as the landscape changes, it’s worth questioning: are these processes still the best way forward?
Conducting an operational audit can be a good starting point. This doesn’t have to be a major overhaul but rather a detailed look at the business’s systems to identify inefficiencies. Look for manual or unnecessarily complex processes and explore automation solutions to save time and resources. Statistics show that 88% of businesses believe automation improves efficiency and, importantly, over half say it directly impacts profitability. From streamlining supply chains to updating customer-service tools, numerous opportunities exist to trim excess and boost performance.
Investing in people and skills
Employee experience is another area where mature businesses can often see a return on investment. In a mature company, long-tenured employees bring experience and knowledge but may also face risks of burnout or a reluctance to adapt to new methods. Investing in continuous learning and development can help employees stay engaged and bring fresh ideas.
According to the Chartered Institute of Personnel and Development, businesses that regularly invest in training see higher productivity rates and are more resilient during economic change. Offering opportunities for employees to upskill, especially in areas like digital proficiency or data analysis, can also help the business stay competitive and relevant. Consider setting up regular workshops, leadership programmes or collaborating with external trainers to ensure that skills and enthusiasm remain high.
Capitalising on data insights
Data is an invaluable asset for businesses, yet it’s often underutilised, especially in long-established companies. Modern data tools provide in-depth insights that can reveal new ways to increase efficiency, improve customer satisfaction, and reduce costs. Mature businesses usually accumulate extensive data, whether in customer behaviour, sales trends, or operational metrics over time. The challenge lies in converting this data into actionable insights.
Implementing a data strategy starts with selecting the right tools and platforms. With systems like business intelligence (BI) tools, mature businesses can pull relevant data and use it to track key performance indicators (KPIs) in real time. For instance, businesses that use BI systems report an average 5% improvement in profitability. These insights can help identify patterns and predict customer needs, optimise product offerings or even find new growth avenues.
Exploring diversification options
While most mature businesses have a well-defined product or service line, exploring new areas of diversification can be a smart way to reinvigorate returns. This doesn’t mean overhauling the core business model but rather exploring complementary products or services that fit naturally within the business’s expertise.
For example, a manufacturing business might consider a service-based offering, such as product maintenance or training. According to McKinsey research, diversified businesses are generally more resilient, with many seeing a 30% higher likelihood of weathering economic challenges. By offering add-on services or products that meet customer needs, businesses can expand their revenue streams without diluting their brand.
Reviewing pricing and customer value perception
For mature businesses, pricing is often left unchanged for long stretches, even as customer expectations and market conditions shift. However, regular reviews of pricing strategies can help ensure the business remains competitive and appealing to customers. Studies show that 48% of customers believe pricing strongly influences brand loyalty.
Instead of lowering prices, which can erode profit margins, consider adding value to the customer experience. This could involve improving the quality of after-sales service, offering exclusive deals for loyal customers, or introducing a tiered-pricing model that caters to different customer segments. The goal is to ensure customers feel they’re getting value for money, reinforcing brand loyalty and keeping revenue steady.
Maintaining a strong financial footing
Finally, ensuring that the business’s finances are in order is essential for maximising returns. Mature businesses often have diverse expenses, from payroll and benefits to rent and utilities, and these can easily chip away at profits over time. Regular financial health checks can help identify cost control and margin improvement areas.
This doesn’t have to mean cutting back but rather making sure that spending aligns with the current business needs and strategic goals. For example, many businesses are now exploring hybrid working models, which can reduce the need for large office spaces and bring down overheads. Other strategies include renegotiating supplier contracts or seeking favourable terms with long-term partners.
Final thoughts
Maximising returns in a mature business isn’t necessarily about dramatic change – it’s often about making small, consistent improvements that add up over time. By reviewing operations, investing in people, leveraging data, exploring new revenue streams, reassessing pricing and keeping finances in check, businesses can keep returns healthy and sustainable for the long haul.
At Langdowns DFK, we specialise in supporting mature businesses to stay profitable and competitive. Our team is here to provide tailored advice on improving operations, exploring growth opportunities and ensuring a solid financial future.
If you’d like to discuss strategies for maximising returns in your business, feel free to get in touch with us.
