Facilitate and speed up expansion with a clear roadmap.
A business growth plan provides a roadmap for the next one to two years on how you can increase your revenue.
The four major types of growth strategies are market strategy, development strategy, diversification and product strategy.
Analysing other business growth plans is essential to develop an effective one for your own business.
What is a business growth plan?
The business growth plan outlines where the company sees itself in the next one to two years. The growth should be created in such a way that it can follow along with each business quarter. This way, the company can review what goals were met or were missed at the end of each quarter. Senior management can revise the plan accordingly to reflect the current market standing.
The business growth plan is beneficial to the entirety of a company, but can also contribute largely to investor interest if developed correctly. Investors largely pay attention to how you plan to increase your sales in the coming months. The benefit of a growth is that it is customisable to the business and doesn’t follow a set template. How does your company plan to make money each quarter? This is the primary question that your business growth plan should answer.
What are the four major growth strategies?
These for primary growth strategies can help you determine how you would like build your business/brand:
Market strategy: This refers to how you plan on acquiring new customers of your target clientele. This does not refer to penetrating new market segments, but rather how your current offering can be adjusted to to increase your market share. Is this price related? Do you need to adjust the messaging within your marketing campaign?
Development: This applies to using your products/services to break into a new market. If you have reached a desirable point of growth within your current market, you may set goals of expanding into the unchartered territory of a new market.
Product strategy: This strategy pertains to developing new products or services that target your current market. Find out what your customers are asking for to grow your business without entering new markets.
Diversification: This refers to expanding both your products and target markets. For smaller businesses who have the means to be versatile with the products/services they offer or use to penetrate a new market, this might be the best strategy.
Writing a growth plan is very similar to writing a business plan.
However, a growth plan focuses specifically on expansion and how you're going to achieve it. Creating a useful plan takes time, but the effort can pay off substantially by keeping your growth efforts on track. A growth plan includes:
A description of expansion opportunities
Financial goals broken down quarterly and yearly
A marketing plan of how you will achieve growth
A financial plan to determine what capital is accessible during growth
A breakdown of your company's staffing needs, roles and responsibilities
1. Think ahead.
The future is always unpredictable, but if you study your target market, your competition and the past growth of your company, you can plan for future expansion. Check for associations such as the Department of Small Business Development to see if they offer a comprehensive guide to writing a business plan for growth.
2. Study other growth plans.
Before you start writing, review models from some successful companies that are similar to yours.
3. Discover opportunities for growth.
With some studying or research, you can determine if your growth opportunities lie in creating new products, adding additional services, targeting a new market, opening new locations or going global, among others. Once you've identified your options for growth, you should include them in your plan.
4. Evaluate your team.
Your plan should include an assessment of your employees, as well as your staffing requirements to meet your growth objectives. This will help you to determine how much growth can be achieved with your current team at hand and determine at what point new staff are required.
5. Find the capital.
Include detailed information on how you will fund expansion. Our industry-leading partners at Fundrr offer a guide on how to prepare and acquire new funding.
6. Get the word out.
Growing your business requires a targeted marketing effort. Be sure to outline how you will effectively market your business to encourage growth and how your marketing efforts will evolve as you grow.
7. Ask for help.
Getting help from other business owners who have had success in growing a business can be the ultimate tool in writing your growth plan. Additionally, find access to business mentors, advisors or consultants to assist you on your journey of expansion.
8. Start writing.
Use software in your growth planning process. Most software programs are geared to business plans, but you can modify them to create a plan that focuses on growth.
Continuously review your growth plan .
Share your growth plan with key employees as a motivator. When employees see opportunity for increased responsibility and compensation, they're more likely to stay.
Assess your current operating systems and networks to determine if they can cater growth.