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Is your business growth deliberate or accidental? The answer might surprise you.

For many of us steering small and mid-size businesses, growth feels like a constant balancing act between careful planning and opportunistic leaps. If you've ever wondered whether your sometimes-chaotic growth journey is "normal," HMRC's research offers a comforting revelation: there is no single path to success.

The Growth Reality Check

HMRC commissioned Ipsos to conduct a deep dive into the growth patterns of UK's small and mid-size businesses. The findings? Growth is rarely linear. Instead, successful businesses experience a mix of planned, organic, and opportunistic growth - with some of the most dramatic acceleration coming from unexpected opportunities rather than meticulous planning.

Perhaps most intriguing is how businesses define growth itself. While almost all businesses tracked turnover as their primary growth metric, the research revealed a fascinating shift: as businesses transition from small to mid-size, their focus increasingly shifts from raw growth numbers to profit margins and strategic expansion.

The Four Pillars of Business Growth

The research identified four key drivers that determined whether businesses stagnated or soared:

1. Leadership Vision & Expertise: The passion and experience of founders and leadership teams proved crucial

2. Strategic Business Approach: Effective marketing, networking, and strategic partnerships

3. Market Positioning: Finding unique offerings or being first-movers in their space

4. Financial Management: Smart capital injection, tax relief utilization, and cash flow protection

What struck me most was that there were no sector-specific growth formulas. Success came from finding the right mix of these drivers for each specific business.

The Hidden Growth Blockers

While the aspirations were universal – all businesses wanted to grow – the challenges were equally common. Recruiting truly skilled staff topped the list, followed closely by cash flow management struggles and capital investment hurdles.

Interestingly, the UK tax system itself wasn't viewed as a significant barrier to growth. However, the complexity of tax processes and perceived lack of support created headwinds for many businesses.

The Support Disconnect

Perhaps the most actionable insight from the research concerns the relationship between businesses and HMRC. While businesses view HMRC primarily as a tax collector (rather than a support channel), those who did receive HMRC support found it "invaluable" in managing financial issues and enabling growth.

The awareness gap proved striking: mid-size businesses were significantly more likely to know about available support programs, while smaller businesses often remained unaware or overwhelmed by perceived complexity.

What This Means For Your Business

If your growth journey feels more like sailing through unpredictable weather than following a straight highway, you're in good company. The research validates that successful growth often combines intention with adaptation.

Here are three practical takeaways:

1. Maintain flexible planning: Have direction but remain agile enough to seize unexpected opportunities

2. Prioritize financial literacy: Understanding available tax reliefs and support programs can provide critical breathing room

3. Invest in connection: Being proactive and networked significantly increases awareness of support programs

Taking Action

As we continue through 2025, I encourage you to reassess your growth metrics. Are you fixated solely on turnover, or have you evolved to track profit margins and strategic expansion? The research suggests the latter approach becomes increasingly important as businesses scale.

Until Next Time!

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