Regional Focus: Growing Population and How It Impacts Businesses

Financial well-being October 10, 2022 By First United Bank

It’s no secret that the population of the United States is growing. Specifically, the southwestern states of Oklahoma and Texas as they offer an abundance of resources for families, small businesses, and large industries. According to the U.S. Census Bureau, the population of both states has increased each consecutive year for the last ten years, with Texas’s population growing by 3.9 million new residents during that time. It’s not surprising to those of us who live here that this is the fastest new resident growth in the U.S. over the past decade.

Metropolitan areas in each state have seen the most growth over the last decade, with Oklahoma County, OK, and Harris County, TX, seeing the most significant growth, and forecasts show that it is not slowing.

Let’s look at a few positive aspects of population growth and some ideas for scaling your business to grow with your community.

It leads to economic growth.

Population growth drives economic growth by increasing the demand for products, services, and community amenities. Community amenities are good restaurants, entertainment, quality public education, exceptional health care, transportation access, and cost of living. These amenities generate new businesses and jobs that help attract and retain the workforce and generate tax revenues - all of which enhance economic activity.

It’s good for business.

Population growth can increase your customer base, positively impacting your revenue and profitability, and it can also open doors to opportunities for growth and expansion. As you grow your business, you will be able to employ more people, pushing your business to contribute more money back into your community through payroll and taxes, which supports the creation of new small businesses and the improvement of community amenities.

Even with all the economic signs showing there is potential for growth, there are still some questions business owners often have about growing the right way.

How do I know if my business is ready to grow?

Your community is growing, and you believe it may be an excellent time to expand. Growth is exciting and can mean a larger or new location, more products or services, customers and sales, and more income, but before you decide it’s time to grow, consider asking yourself some tough questions, like:

  •  Do I have enough employees to handle a higher demand in orders? Or will I need to hire more people?
  •  With higher demand, will product/service quality suffer?
  •  Will my vendors be able to handle higher demand?
  •  Can my current operations model handle more customers, or will it need to change?

These are just a few things to consider when deciding if it is the right time to grow. It is also important to remember that growth without scale may hurt your business long-term. Scaling your business means establishing processes that support your business’s growth. Without a solid plan, rapid growth could become stunted with too many growing pains.

How do I grow and scale my business to meet the demands of my community?

Scaling a business refers to its growth both in size and operational scope, with the idea being to grow revenue faster than you bring on new costs. Check out these tips to help you scale your business:

  1. Think big. Start by taking a big picture look at your business. Consider your current sales and how much you want to grow, timelines for growth, your employees, and operating processes. Will you need to hire new employees, and how will you retrain the ones you have? Are there areas you can streamline operations through automation? What can you do to ensure your business runs as efficiently as possible?
  2. Update technology. Critical to scaling is having the right technology and processes in place. Investing in the right technology will allow your business to automate manual processes such as bookkeeping, scheduling, invoicing and billing, and inventory, saving valuable time.
  3. Hire strategically. At some point, you will need to expand your workforce. Rapid growth can sometimes cause businesses to urgently hire underqualified help or paying subpar wages. Focus on what it takes to hire talented people and you’ll attract and retain better talent.
  4. Stay focused on your customers. Giving your customers a great customer experience every time shows them that you value them and leads to brand loyalty, repeat business, and growth.

Growing and scaling your business will require work, dedication, and determination. It is essential to stay focused on your goals. And remember that as your community grows and you look for creative ways to serve your customer and grow your business, you can trust us to partner with you to find sustainable solutions to meet your business’s needs.

By First United Bank