An 8 Step Guide to Developing a Business Growth Plan

an 8 step guide to developing a business growth plan

8 Tips to Build Out a Business Growth Plan

A business growth plan supplies a timeline for the upcoming 1 to 2 years with the primary objective of increasing revenue. Business plans which are also important tools should not be confused with business growth plans.

While there are virtually endless growth strategy options available, there are 4 main business growth strategy types that all business owners should be aware of. The first growth strategy is the market strategy which aims to increase sales through existing customers and existing products.

The second growth strategy is development which focuses on bringing existing products to a new market and new customers instead of existing customers or markets. Product strategy is the third strategy type, which aims to bring new products to existing customers in the current market.

Lastly, diversification involves the introduction of new products to new markets and new customer bases. Regardless of which growth strategy is used, a business growth plan is an immensely helpful tool.

Business growth plans are short term outlines that generally cover the upcoming 1 to 2 years. However, growth plans are vital for long term business growth success.

Best practices suggest that growth plans are reviewed at the end of each quarter. During the review, objectives that were met and not met can be analyzed closely.

Business owners should make sure that information like market share standing is updated during these reviews. Growth plans are commonly provided to investors when seeking additional business funding, so any growth plan should be written with that audience in mind.

Especially for small business owners that need help with their own growth plan composition, researching how to best develop these plans is well worth the effort. Although there are plan template examples available, there is no established format that plans must follow.

However, a proper business plan for growth should include the following aspects-

1. Financial goals and plans including cash flow and market share information
2. Expansion and development opportunity descriptions
3. Marketing strategy plan
4. Staffing needs and responsibilities

Thankfully there are many tips and suggestions available for building growth plans that could help business owners looking to establish their own. 8 steps and tips for building a business growth plan include-

1. Planning

1 planning 1610573192 4592

Business planning could help business owners think ahead, foreseeing risks as well as opportunities that they may have otherwise overlooked. Many resources are available online to provide guidance to business owners that need help creating their own growth plans.

Proper business planning efforts should be focused on aspects ranging from new market expansion to careful analysis of competitors. Business owners should make sure that they consider past growth before they plan growth for the future.

2. Studying

Especially for small businesses that have no experience creating business plans for growth, reviewing plans created by other successful companies could help immensely.

A small business growth plan could help more for small businesses reference, while a large corporation plan could help most if referenced by a larger company.

3. Searching

3 searching 1610573192 6292

There are various methods available for growing business profits ranging from new product development to existing customers successfully upsold. Alternatively, an organization could choose to expand into new markets or even open a small business satellite location.

Business planning initiatives must always make sure to include any development and growth objectives.

4. Evaluating

4 evaluating 1610573192 9122

Employees are essential for business success, with the capability to increase sales and provide customer service that is excellent. Growth plans should always include both staffing requirements and employee assessments.

Business owners should additionally make sure to assess their own skills alongside any employee assessment information provided.

5. Financing

An outstanding marketing strategy could help considerably for growing business revenue and increasing long term bottom line profitability. Ideal customer profiles and value proposition statements are examples of marketing strategy tools that could help increase sales and market share presence.

Many successful business owners have found a healthy balance between digital marketing and more traditional marketing strategy techniques. Any marketing strategy developed should make sure to focus on existing customers in addition to customer acquisition efforts.

6. Marketing

6 marketing 1610573192 4175

An outstanding marketing strategy could help considerably for growing business revenue and increasing long term bottom line profitability. Ideal customer profiles and value proposition statements are examples of marketing strategy tools that could help increase sales and market share presence.

Many successful business owners have found a healthy balance between digital marketing and more traditional marketing strategy techniques. Any marketing strategy developed should make sure to focus on existing customers in addition to customer acquisition efforts.

7. Consulting

7 consulting 1610573192 6092

A great method to foster long term working relationships with other business owners is by requesting information and advice directly from them. Additionally, connecting with other business owners can create future opportunities ranging from new market customer acquisition to social media collaborations.

8. Writing

A final step to composing a great growth plan is to actually begin writing one. After the plan is written, business owners must make sure to review and revise it consistently.

Ultimately, a great growth plan is more than just a guide, it is a crucial business planning tool and a great way to increase sales long term as well as sustainably.

Key Takeaways

key takeaways 1610573192 8136

  • With virtually endless growth strategies available, creating a business growth plan can be intimidating.
  • Tips for creating an excellent business growth plan range from evaluating staffing requirements to consulting with other local company owners.